October 11, 2023 / 09:09 AM IST
Sensex Today | Prashanth Tapse, Senior VP (Research), Mehta Equities:
The commencement of the 2nd-quarter earnings season by TCS on October 11th not only serves as the symbolic starting signal but also paves the way for potential share buybacks alongside the Q2 results. TCS, boasting a robust cash balance of Rs 15,622 crore as of June 2023 and the noteworthy absence of debt, finds itself in a formidable financial position.
Furthermore, Infosys, HCL Tech, and HDFC AMC are slated to unveil their Q2 earnings on October 12th.
In our analysis for the day, the Nifty market appears poised for fluctuation with a discernible positive bias. Now, let’s delve into our recommended trades for
Nifty and Bank Nifty:
Nifty (19690): We recommend considering a buy at the current market price (CMP) with a stop at 19421, targeting 19757/19989. Aggressive targets are set at 20225.
Bank Nifty (44360): A buy at CMP is suggested, with a stop at 43713, and the aim of reaching targets at 44750/45301. Aggressive targets are in the 45501-45751 zone.
Six significant positive catalysts currently exert their influence on the market:
1. Dovish comments from Federal Reserve officials.
2. The US Dollar weakened to 105.73 levels.
3. US 10-year Treasury yield declined to 4.651%.
4. WTI oil prices remain sluggish below the $86 per barrel mark.
5. China is contemplating at least an additional $137 billion in stimulus.
6. India’s net direct tax collection increased by 22% to over Rs 9.57 trillion.
Our chart of the day is bullish on Hindalco, L&T Financial, Tata Consumer Products, and Bajaj Finance, particularly during intraday dips, with a perspective spanning the week.
One stock that stands out as a compelling buy right now is Zomato (CMP 106). We recommend establishing long positions at the current market price, targeting 121/143, and setting aggressive 1-year targets at the psychological mark of 175, with a stop at 81.
Expect stocks like Hindalco and Hindustan Copper to remain in the spotlight due to warnings from copper producers about the scarcity of mines to meet the growing demand for metals. Metals are also likely to draw attention as China considers increasing its budget deficit for 2023 as part of a new stimulus package aimed at achieving the government’s annual growth target.
In the options market, Nifty is expected to trade within a range of 19300-19800, with maximum Call open interest at 20000, followed by 19800 strike prices, making the 20000 mark a crucial resistance zone. Maximum Put open interest is observed at 19600 levels, followed by 19000 levels. Call writing is prominent at 20100 and 20000 strike prices, while meaningful Put writing is seen at 19600 and 19700 strike prices.
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