From Advisory Desk : Vikash Sahay
08th October 2020
Market Outlook: A series of tweet from US President Trump citing peacemeal with opposition about stimulus, led US markets to closed up by 2℅. SGX Nifty is trading above 11800 which is 7 month high. Yesterday’s after market TCS stellar result and commentary citing “Multi year transformational cycle” would sail the market upside and IT to lead the pack. Market breadth is widening by participation of sectors like IT, pharma and cements.
Top picks sector wise:
IT: Infosys, Wipro, HCL, Tech M, TCS
Pharma: Divis Lab, Dr Reddy, Lupin, Dr Lal,
Cement: Ambuja, Ultratech, JK Cement, Dalmia Bharat
SGX NIFTY: +15 (prev.close 11794)
NIFTY 50 : 11738
Sensex : 39878
FII: +1094 Cr
DII: -1129 Cr
Advances: 1047 / Declines: 1640
Dollar: $ 73.34
Gold: $1890 per ounce
Crude: $42.10 per barrel
10 year US bond rate: 0.79
10 year Indian Bond rate: 6.01
TCS: Company posted strong set of numbers in Q2 across all segments, reported strong deal wins of $8.6b and positive commentary from management. Board approves proposal to buy back up to 5.33 crore equity shares, or 1.42% of the total paid up equity share capital. Buyback at around Rs 3,000 per equity share for an aggregate mount not exceeding Rs 16,000 crore.
Wipro: Board to consider buyback of the shares on 13th October.
Life insurance industry update : Industry reported overall APE growth of 7% in Sep month vs -2.3% in Aug 2020. Among listed players, HDFC Life & Max life reported positive growth of 45% YoY and 16% YoY, respectively. On the other hand, SBI Life posted decline of 1% YoY. ICICI pru continued to witness pressure and reported decline of 23% YoY.
Securities in Ban: IDEA, ADANI ENT, BHEL.
Derivative View : VIX closed at 20.06. Max Put OI is at 11500 then 11600. Max Call OI is at 11800 then 12000. Option data suggests a trading range between 11650 to 11850.