SD Solutions

Positional traders should short rallies in the 11,790–11,850 zone and look for a bigger target of 11,520 with a stop above 11,900 on a closing basis. The Nifty50 wiped out almost all last week gains and closed below 11, 800 on October 26 as a correction was seen across sectors barring FMCG, which ended flat. The rising coronavirus infections in the US and Europe along with a delay in the American stimulus package dented sentiment. After opening flat at 11,937.40, the Nifty50 hit an intraday high of 11,942.85 but immediately slipped to touch the day's low of 11,711.70. The index closed at 11,767.80, down 162.60 points or 1.36 percent. The index formed a large bearish candle on the daily charts as closing was much lower than opening levels. More than two shares declined for every share rising on the NSE. The Nifty midcap and smallcap indices were down 1.7 percent and 1 percent. The selling pressure amid volatility may continue if the index breaks its recent corrective swing l...

The maximum profit of 190 points could be gained if the Bank Nifty expires at or above 25,000. Markets regained control after pausing in the previous week and witnessed a tug of war between the bulls and the bears. During the week, the Nifty traded in a range of merely 240 points. It also formed a Spinning Top candlestick pattern on the weekly scale, which indicates indecisiveness among participants. The index faced stiff resistance at 12,000 and made multiple attempts unsuccessful attempts to go past it. We reiterate that 12,000 is an extension of the rising trend line, which has acted as a supply zone for the markets in the past couple of weeks. Only a close above 12,000 will bring the bulls back, propelling the index towards a life high. A breach of 11,800 can intensify the panic in the market, pulling the index down to 11,600 levels. The momentum indicators and oscillators have reached the overbought territory on the daily chart and profit booking at higher levels can't be rule...

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said the pre-IPO work of LIC is going on at four stages -- appointment of advisors for ensuring compliance, legislative amendment, LIC''s internal software changes to come out with its ''embedded value'' and appointing an actuary for vetting LIC's actuarial valuation. The mega initial public offering of Life Insurance Corp (LIC) may spill over to the next fiscal as the government will first look at the independent actuarial valuation of the country''s largest insurer, a top official has said. Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said the pre-IPO work of LIC is going on at four stages -- appointment of advisors for ensuring compliance, legislative amendment, LIC''s internal software changes to come out with its ''embedded value'' and appointing an actuary for vetting LIC's actuar...

Elliott wave method combined with Bollinger Bands and ROC indicator gives the overall context of the market, and range bound move between 12,100 and 11,650 can be expected. Nifty Neo wave pattern suggests prices are in the second corrective pattern and showing some tiredness. Nevertheless, the support levels are protected as of now which can keep the broader trend in a range as of now with crucial resistance lying near 12,050–12,100 on the upside and important support now at 11,650 levels. Nifty has continued to drift with no clear direction over the past two weeks as prices are back in the zone seen during February 2020. Nifty Neo wave pattern and Bollinger Bands   Nifty has continued to move higher slowly and steadily over the past many months. The speed with which prices have been rising has slowed down and the same can be measured by looking at the Rate of Change indicator.   The parameter for this indicator is selected to be as 27, which is half of the Time ...

The IT services company has declared a special dividend of Rs 15 per equity share for the quarter Tech Mahindra on October 23 reported a profit of Rs 1,064.6 crore in the quarter-ended September 2020, registering a 9.5 percent growth compared to June quarter. The profitability was supported by strong operating growth, but the 71.8 percent sequential fall in other income to Rs 117.5 crore restricted growth. Revenue from operations during the quarter increased 2.9 percent to Rs 9,371.8 crore from Rs 9,106.3 crore in the previous quarter. The dollar revenue at $1,265.4 million grew by 4.8 percent QoQ, while revenue growth was at 2.9 percent QoQ in constant currency terms, Tech Mahindra said in its BSE filing. The IT services company has declared a special dividend of Rs 15 per equity share for the quarter. "The Repair, Rally and Rise strategy has helped the company to emerge stronger, as we journey towards a post COVID-19 world. We are witnessing demand...

Historical data for the last five years post-Diwali suggest that Sensex has risen 1-4 percent in the period following Diwali. The Sensex rallied by over 45 post-Diwali in 2019, followed by over 3 percent gain in 2015. The year 2020 has been a volatile one for the equity market. At the start of the year, benchmark indices hit a high in January and then a 52-week low in a matter of just two months in March. And now, we are just 4 percent away from reclaiming fresh record highs. The Indian market has recouped most of the losses after hitting a low in March. Both Sensex, and Nifty have rallied by over 50 percent since then, and are on the verge of breaking into unchartered territory if the momentum continues. Sensex is just 4 percent away from hitting a record high, placed at 42,273 compared to October 21's closing of Rs 40,707. Historical data of last five years suggests that Sensex rallied 0.2-6 percent in the run-up to Diwali, and the trend post-Diwali is much more f...

Flipkart’s technology prowess will enhance ABFRL’s omni-channel capabilities, enriching customer experiences while continuing to provide access to premium loyalty programs and affordability constructs for which Flipkart is known, the company said. Flipkart is buying 7.8% stake in Aditya Birla Fashion for Rs 1500 crore at Rs 205 per share, latter said in a BSE statement. Kumar Mangalam Birla, Chairman Aditya Birla Group said, “This partnership is an emphatic endorsement of the growth potential of India. It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years." Aditya Birla Fashion said it will use this money to strengthen its balance sheet and accelerate its growth trajectory. The company plans to aggressively scale-up its existing businesses where it holds strong, market leading positions while increasing presence in emerging high-growth categories such as innerwear, athleisure, casualwear...