Mount 40K possible for Sensex by December 2018: Top 10 stocks which could give up to 34% return

In the bull case scenario which has a probability of 30 percent, the S&P BSE Sensex could rally towards 41,500 on better-than-expected on policy measures as well as global factors. The earnings growth would also accelerate to 19 percent in FY2018 and 27 percent in FY2019.

The S&P BSE Sensex climbed nearly 7,000 points or 26 percent so far in the year 2017 but the rally may not be over yet as the index could well hit Mount 40K by December 2018 if earnings growth accelerates to nearly 20 percent in a bullish scenario, said a global investment bank in a report.

A combination of supportive global growth, improving capex, fiscal spending and a buoyant consumer augur well for growth in the year 2018. Morgan Stanley introduced its December 2018 Sensex target at 35,700 (base case), which translates into an INR and USD upside of 6 percent and 7.4 percent compared to MSCI EM index upside of 3 percent.

In the base case scenario which has a probability of 50 percent, the BSE Sensex would trade at 15x one-year forward earnings, below its historical average.

The growth will also accelerate slowly. The global investment bank expects earnings growth of 16 percent and 24 percent on a year-on-year basis in FY2018 and FY2019, respectively.

In the bull case scenario which has a probability of 30 percent, the S&P BSE Sensex could rally towards 41,500 on better-than-expected on policy measures as well as global factors. The earnings growth would also accelerate to 19 percent in FY2018 and 27 percent in FY2019.

And, in the bear case scenario which has a probability of only 20 percent could push the S&P BSE Sensex towards 25,000, if the policy response is tepid and global conditions deteriorate. The S&P BSE Sensex earnings grow by 7 percent in FY2018, and 23 percent in FY2019.

Morgan Stanley is going overweight on Industrials gave their positive view on the private capex. The global investment bank also likes corporate banks, infrastructure owners, discretionary consumption, domestic materials and software stocks while avoiding healthcare, staples, utilities, global materials, and energy.

Top stocks in Morgan Stanley's focus list include names like Bajaj Auto, M&M, Maruti Suzuki, ZEE Entertainment, ITC, RIL, Bharat Financial, HDFC Bank, ICICI Bank, IndusInd Bank, M&M Financial, Dr Reddy's Laboratories, Adani Ports etc. among others.

UBS remains overweight (OW) on auto parts and two-wheelers (2Ws) such as Eicher Motors. It is also positive on retail private banks, SOE banks and NBFCs (ICICI Bank, Bank of Baroda and LIC Housing Finance preferred picks).

In the consumer staples UBS prefers Marico, and in the IT services, TCS is preferred bet. In the property or real estate sector, UBS prefers Prestige Estates Projects, and in the telecom space, the global investment bank prefers Bharti Airtel and Bharti Infratel.

UBS added oil & gas to their OW sectors and Bharat Petroleum (BPCL) to their Most Preferred list. The global investment bank is underweight (UW) on Small and Midcaps (SMID), but prefer bottom-up ideas, including Dr Lal Pathlabs, Multi Commodity Exchange of India (MCX) and Voltas.

Here is a list of top 10 stocks ideas from global brokerage firms which could give up to 34% return in the next 1 year:

Brokerage: UBS

Eicher Motors: BUY| Target Rs38000| Return 25%

The management in the conference shed some light on demand for their motorcycles. They believe that the company is still underpenetrated even though Royal Enfield forms almost

6 percent of new motorcycle sales.

There are only 2-2.5 million of Royal Enfield motorcycles compared to 60m motorcycles and 100m two-wheelers plying on the roads in the domestic market

The company stated that almost 95 percent of their customer base comprises of commuters while only 5 percent of their customer base is of leisure motorcyclists.

The management believes that the new 650cc models should help grow the leisure motorcycling customer base for the company. Mgmt. is also focused on market development and brand awareness in its export markets.

ICICI Bank: BUY| Target Rs400| Return 27%

The loan growth for the bank is expected at 9-10 percent led by domestic loan book growth at 15 percent. Margins are likely to remain above 3 percent in FY18.

The NPL formation run rate might continue in H2; however, stress outside the watchlist is significantly lower compared to last year.

The IFRS adoption can significantly bring down credit cost in FY19; however, if IFRS is delayed then credit cost may remain high in FY19 as well. Bankruptcy cases are progressing on track and visibility on haircuts would be better in Jan-Feb.

Bank of Baroda: BUY| Target Rs230| Return 34%

The loan growth for the bank is expected at 9-10% led by retail loan book growth. Corporate loan book is expected to remain weak as loan repayments are higher.

The net interest margins (NIMs) are expected to improve and the bank expects to report NIMs for Q4FY18 at 2.5% from 2.3% in Q2FY18. Bank expects positive surprise (upgradation and provision reversals) from GNPL in FY19.

Bharti Airtel: BUY| Target Rs615| Return 24%

Bharti Airtel continues to see increasing trend in data consumption with average data usage per subscriber moving northwards from the levels of 4Gb which Bharti Airtel it saw in Q2FY18.

Bharti Airtel believes that current APRU is not sustainable for the Industry and expects APRU to inch northwards as Jio starts to take price hike.

While the cost optimization is largely done in Africa business, the key challenge remains revenue growth for Bharti Airtel in Africa. Similarly, the company is looking to expand scale in non-mobile India business.

BPCL: BUY| Target Rs670| Return 30%

The sales volume growth is driven by higher gasoline, ATF, and LPG. GST remains a big challenge with P&L impact of Rs1.7bn in 2Q being the first quarter of implementation. Non-fuel initiatives are improving the footfall.

BPCL's marketing volumes continue to grow at 4-5%, GRMs expected to stabilize at US$6 to 6.5/bbl for Mumbai refinery and Kochi refinery expansion to at least add US$2/bbl additional GRMs.

BPCL to enter into the field of Propylene-based petrochemicals utilizing Propylene to be available post-Kochi refinery upgrade and expansion.

Brokerage Firm: BNP Paribas

HDFC Bank: BUY| Target Rs2089| Return 12%

HDFC Bank is in BNP Paribas’s top pick in the Indian banking space. It believes that the bank is well-positioned to capture growth opportunities given its: 1) stable asset quality, 2) healthy 13.3% tier-1 ratio, 3) a strategic rural presence, and 4) a multitude of digital offerings.

IndusInd Bank: BUY| Target Rs1887| Return 13%

BNP Paribas likes IndusInd Bank on account of: 1) its liability franchise, which continues to improve, 2) strong growth momentum, which we expect will continue over the next few years, 3) the product mix change towards high-yield retail, which we believe will aid margin expansion, 4) consistent management performance in line with guidance over the past ten years, and, 5) in the long-term, IndusInd’s strategy fits well with our themes of deleveraging, capital accumulation and deposit gathering.

Infosys: BUY| Target Rs1130| Return 15%

Infosys is working towards 1) refocusing on traditional service lines, 2) re-skilling employees and improving productivity, 3) industry partnerships, and 4) acquisitions in digital technologies.

The global investment Bank believes that the stock is a play on recovering tech spending, especially in the US and Europe, in areas such as BFSI and manufacturing.

The disruptions from the recent board and management changes are largely behind us, and the recent results have been solid albeit unspectacular.

HCL Technologies: BUY| Target Rs1020| Return 19%

HCL CL Tech has a well laid out Mode 1-2-3 strategy to grow new services and offset shrinkage in traditional lines, aided by a well-diversified portfolio, with c58% of FY17 revenue from less competitive areas such as infra and engineering services.

BNP Paribas believes that FY18 revenue guidance, which implies about 2.6 percent QoQ USD growth in 2H at stable margins, is achievable given strong deal wins and expanding IP relationships (IBM, DXC).

HCL Tech is also well-placed to guard against potential US visa reform due to a revenue mix that is more offshorable, and about 55 percent of its US-based employees are nonimmigrants.

ZEE Entertainment: BUY| Target Rs640| Return 10%

Zee is the largest listed television broadcaster in India. Zee’s financials have been resilient despite the slowdown in consumer spending. BNP Paribas expects improvement in revenue growth for consumer companies and increased advertising spend, leading to a mid-teens ad revenue CAGR over FY17-20E for Zee.

Zee also remains well positioned to benefit from an increase in subscription revenue with better monetisation of phase-3 and phase-4 digitization markets.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 5 stocks and 1 sector are on analyst radar today

Voltas

Brokerage: Edelweiss | Rating: Buy | Target: Raised to Rs 700

The brokerage house expects 35%/18% FCF/EPS CAGR over FY17-19. Further, it sees significant ramp-up in white goods revenue.

Tata Power

Brokerage: Citi | Rating: Upgrade to Neutral | Target: Raised to Rs 100

The global financial services firm said that H1FY18 growth was driven by coal mines.

Alkem Labs

Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 2,275

Credit Suisse said that the firm offers steady 18-20 percent profit CAGR.

Sagar Cements

Brokerage: Edelweiss | Rating: Resume coverage with buy | Target: Rs 1,137

The brokerage said that acquisition of BMM’s 1 mt cement plant has taken co’s capacity to 4.3 mt. Further, it said that the company will be key beneficiary of the uptick in demand on AP & Telangana bifurcation. EBITDA/tonne is expected to move to Rs 1,021 In FY20 From Rs 655 in H1FY18.

Sun Pharma

Brokerage: Credit Suisse

October IMS data highlights the firm has restarted supplies from Halol for few products. The firm’s sales are up 8% qoq; gained market share in Gleevec Generic from Apotex.

SECTOR:Banks

Brokerage: Jefferies

The global research firm said that it sees 50 percent haircut across stressed loans for SBI, ICICI Bank, and Axis Bank, while it is 80 percent in case of PNB and Bank of Baroda. A 10% higher hair cut implies a further 5-12% decline in BVPS, it said in its report.

MORE WILL UPDATE SOON!!

S&P 500 and NASDAQ 100 Forecast

S&P 500

The S&P 500 initially went sideways during the trading session on Tuesday, but then broke above the 2605 level, to break towards the 2016 handle. This market is a little overbought at this point, so for short-term pullbacks offer buying opportunities to take advantage of the break out. I look at the 2600 level underneath as the short-term floor in the market, and I think that we will continue to go much higher. With this being the case, it’s likely that the market will probably go to the 2650 level after that, and possibly beyond. Pullbacks should offer value at best, but if we were to turn around and break below the 2590 handle, the market could find itself selling off a little bit more significantly. I think the selloff is probably needed, but it is obvious that the market cannot sustain any bearish pressure, so in the meantime buying on the dips probably remains the only thing you can do.

I recognize that the 2625 level is going to be a target as well, as it has a certain amount of psychological importance. The S&P 500 has gone sideways for a couple of days, so I think that the momentum could stick with this market to the upside for the next couple of days, but eventually we will need to pull back as the market has been overbought for so long. If the US dollar starts to strengthen, you could see this market pull back in general, but I don’t think it would be a longer-term issue, rather than a short pull back. Ultimately, I think that the algorithmic traders continue to lift the S&P 500 every time we fall anywhere near 1%. It looks like the machine-driven buying continues.

Dow Jones 30

The Dow Jones 30 exploded to the upside on Tuesday, as we have extended gains above the 23,700 level. The market is getting parabolic again, so a pullback is probably coming. I look at a move like this as one that you need to wait for value to get involved. Buying at these high levels would be very risky, and essentially “chasing the trade.” In general, this is a market that could drop back towards the 23,600 level, where I would expect to see quite a bit of resistance that has turned into support now. I believe that the 23,500 level has now proven itself to be a bit of a floor, and that we are going to go looking towards the 24,000 level. A weakening US dollar should continue to help as well. Also, with the United Kingdom reaching a divorce bill agreement with the European Union, I think we are going to see bullish attitude and markets around the world.

NASDAQ 100

The NASDAQ 100 continues to go sideways, and therefore I think that we are trying to build up momentum over here to go higher. The 6450 level above is a target, and then obviously the 6500 level as it is a large, round, psychologically significant target. I believe that there is plenty of support at the 6400 level, that extends down to the 6375 level. The moving average is on the stochastic oscillator trying to cross to the upside, so therefore think it’s only a matter of time before the buyers enter and continue to try to drive the momentum higher. With the Dow Jones 30 and the S&P 500 breaking out to the upside, you would think that the NASDAQ 100 will follow shortly.

MORE WILL UPDATE SOON!!

Top 11 small & midcap stocks in LIC portfolio which have given multibagger returns

Life Insurance Corp. of India (LIC), the country’s largest institutional investor, has significant exposure in the small and midcap space.

Big returns in small packets! Well, this is true for stocks especially in the small and midcap space which have seen re-rating by the market. Midcaps now trade at a 45 percent premium to the Nifty in terms of P/E.

The small and midcaps have been outperforming benchmark indices throughout this week. The S&P BSE Midcap index rose to a fresh record high of 17,093 while the S&P BSE Smallcap index rallied to a record of 18,273 on Tuesday.

The broader market saw buying interest on a day when both Nifty and Sensex closed in the red. The trend is unlikely to get challenged anytime soon as experts feel that there is a lot of money waiting on sidelines especially for stocks which can deliver growth.

Life Insurance Corporation of India (LIC), the country’s largest institutional investor, has significant exposure in the small and midcap space.

Out of 108 stocks in its portfolio, top 11 stocks based on return given belong to the mid and smallcap space. These stocks have more than doubled investors’ wealth so far in the year 2017.

Stocks which saw a gain of 100-280 percent rally in the current calendar year include names like Hexa Tradex, RCF, Bengal & Assam Company, Punjab Alkalies, Jindal Saw, JP Associates, KEC International, ITDC, Dewan Housing Finance, Future Enterprises, and Shalimar Wires.

According to a recent media report, Life Insurance Corp. of India (LIC), booked a trading profit of at least Rs13,500 crore from the sale of equity holdings in the first half of the current financial year, as stocks scaled record highs.

The figure marked a 23.8% increase over the Rs10,900 crore in trading profit that LIC earned in April-September 2016 through investment redemptions, the media report said which was released earlier this week.

As many as 33 stocks got added to LIC’s portfolio for the quarter ended September when compared with June quarter which include names like Adani Ports, Assam Company, Bank of Baroda, Bharati Defence, Canara Bank, Coal India, JBF Industries, Power Grid, Tata Elxsi, Wockhardt, India Cements etc. among others, according to Capitaline data.

The largest institutional investor pulled out money from as many as 21 companies which include names like Aban Offshore, BSE, Dredging Corp, Gokak Textiles, Oriental Bank of Commerce, Infosys, Oriental Bank of Commerce, Rathi Steel, Tata Motors etc. among others.

What should investors do?

The small and midcaps stocks are known to deliver impressive growth when compared to largecap peers especially in a low growth rate environment.

With high liquidity and investors looking for ‘value’ outside the large cap space, small & midcap stocks have seen significant appreciation. While the Nifty trade at 26x trailing PE, the small and midcap index is trading at historic highs of over 50x trailing PE.

Obviously the valuations thereby leave significant room for disappointment on the earnings growth and ROE fronts in comparison to what valuations are implying. There is a need for a constant reality check in terms of earnings growth potential in stocks which have given astronomical returns in the short run.

Over the last 12 months, midcaps have delivered 23 percent returns, as against 20 percent by the Nifty. In the last five years, midcaps have outperformed the Nifty by 68 percent.

We do not recommend booking profits across the board. Strategy differs from stock to stock. Overall there has been a re-rating of the small cap and mid cap space and now the valuation gap has disappeared.So, tactically one should reduce exposure to small and midcaps and keep 20% of the money earmarked for these stocks into cash.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 9 stocks and 1 sector being tracked by analysts today

L&T

Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,590

The global research firm said that valuations could catch up as triggers are in place. Further, closure of big ticket orders in Q3/Q4 is a catalyst.

Godrej Consumers

Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,159

The firm said that Godrej Consumer is the top pick in Indian consumer sector.

Coal India

Brokerage: Macquarie | Rating: Upgrade to Outperform | Target: Rs 310

The global research firm said that it expects domestic coal market to remain tight in near term. 6% dividend yield reduces downside & makes risk-reward attractive, it said, adding that lower supply & strong global prices to help e-auction prices. Macquarie also expects EPS growth to resume after second half of this fiscal.

Zee Entertainment

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 707

CLSA said that the company is favourably placed to leverage a pick-up in advertising post GST rollout. Further, gains in both network & Hindi GEC viewership are extensive.

Reliance Industries

Brokerage: CLSA | Rating: Buy

The brokerage house said that JioPhone could drive next leg of growth for Jio after a fabulous first year. It said that the telecom firm achieved 12% subscriber market share one year after its Launch and is also very close to becoming the second largest operator in urban areas. Going forward, it said that ramp-up of its JioPhone will enable it to target untouched feature phone market. On a separate note, it added that start Of downstream expansion will drive a doubling of EBITDA over FY17-20.

Britannia

Brokerage: Jefferies | Rating: Initiate with Hold rating | Target: Rs 4,850

Jefferies said that it likes the firm for its strong execution in biscuits via distribution expansion, cost efficiencies. Further, strong execution in biscuits bodes well for revenue & margin and it expects EPS to rise at a 16% CAGR over FY17-20. It also said that given limited room for positive surprises, we are 5% below street.

Glenmark

Brokerage: Nomura | Rating: Buy | Target: Unchanged at Rs 880

The brokerage house said that Baddi Site 483 observations are concerning and that there are similarities between Glenmark’s Baddi & Lupin’s Indore & Goa observations. Further, it also said that it is concerning as Lupin recently received warning letter for the sites. Nomura is not expecting an approval from Baddi site until inspection is closed. Having said that, it said that financial impact of observations may be limited.

NTPC

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 215

Deutsche Bank said that the firm has started to grow its volumes way ahead of the market and this growth may sustain and aid incentives and RoE.

Siemens

Brokerage: Deutsche Bank | Rating: Sell | Target: Cut to Rs 1,030

The global financial services firm said that FY17 orders were strong, but outlook still concerning. Further, the opportunity size remains stagnant for FY18. It also cut order inflow assumption by 3/7 percent for FY18/19. The brokerage also reduced revenue growth estimate by 4.5/3.8 percent by FY18/19.

SECTOR:Pharma

Brokerage: Goldman Sachs

The global research firm said that two years of intense US price erosion weigh on growth prospects of Indian generics. Further, it raised business price erosion assumption to 12 percent for next 3 years.

Brokerage: Axis Cap

Axis Cap said that channel inventory levels of domestic formulations improved to 32 days in October. Firms with strong brands or higher chronic share outperformed peers. The company expects growth for domestic formulation firms to improve to mid-teens in H2FY18/FY19.

MORE WILL UPDATE SOON!!

S&P 500,NASDAQ 100,DOW Jones 30,Performance

PERFORMANCE:

Yesterday we had also recommended to buy SREI Infra (cash) around 105--104 for target of 109 with stop loss of 102.Our called proved fruitful and today it made high of 111.80 and closed at 109.35.We were able to mint profit or return of 3.80% in just two trading session.

Rest all call remains intact.....Maintain Stop loss and remember folks patience is the key..

S&P 500 and NASDAQ 100 Forecast

S&P 500

The S&P 500 initially fell on Monday in CFD trading, reaching down towards the 2595 level before bouncing again. By doing so, the market built up enough momentum to reach towards the 2600 level again and even break above there. The 2600 level of course is very important, and will attract a lot of attention. Now that we have broken above there, the market looks likely to find that area as supportive. Ultimately, I believe that the longer-term uptrend continues, in a market that seems to be algorithmically driven more than anything else. I believe that the US dollar falling has helped a little bit, but given enough time we should reach towards the 2625 handle, and then eventually the 2650 level. Ultimately, this is a market that I think is almost impossible to short, because we have seen so much in the way of buying pressure. However, that doesn’t necessarily mean that I want to jump into this market feet first and with a large position.

Buying dips continues to be the best way to trade this market, and I think that the 2590 level underneath is offering a temporary “floor” going forward. I think that the S&P 500 will continue to go higher with other US stock indices, least in the short term. The problem that we may have is that US Congress not been able to pass tax reform would be very negative for the stock market as it would affect corporate earnings. Because of this, I expect a lot of noise in this market and it is not to be an easy one to trade. Options are probably the best way to go, as at least then you can mitigate a lot of your potential risk.

Dow Jones 30

The Dow Jones 30 initially drifted lower during Monday trading, reaching towards the 23,500 level to find buyers. We bounce from there to reach towards the 23,635 handle, and then pull back again. However, every time we dip, the Dow Jones 30 seems to find buyers, as do most US stock indices. Algorithmic trading continues to lead the way, and I don’t think that this is a market you can sell. In fact, it looks to me like the 23,500 level is starting to offer a bit of a floor. I think that eventually we go looking towards the 25,000 level above, and although this market is overbought on longer-term charts, you certainly cannot step in front of this type of momentum as risk appetite continues to be strong.

NASDAQ 100

The NASDAQ 100 of course has been bullish as well, showing signs of support at the 6400 level, an area that was massively resistive in the past. By pulling back yet again, and showing support yet again, it looks as if we are in a bit of a holding pattern, perhaps trying to build up the momentum necessary to reach towards the 6500 level above. I believe that is a psychologically important level that of course will attract a lot of attention, and be a juicy target for the bullish traders out there to take advantage of.

I look at the 6370 level as a bit of a floor currently, and that short-term traders continue to jump in based upon dips that offer value, in a market that I think almost must test the 6500 level above to answer a lot of questions. Longer-term, I don’t see why we wouldn’t continue to go higher, because quite frankly the machines have taken over.

MORE WILL UPDATE SOON!!

Performance//S&P 500 Analysis/DOW 30 Analysis /Nasdaq 100 Analysis/Indian Market Analysis

PERFORMANCE:

Last week we had given call to buy Ashok Leyland (future) around 116.50--116.00 for target of 120--122 with Stop Loss of 113.I am glad to tell you that both our target were hit today and we were able to mint profit.We booked profit of Rs 38500 on 1 lot or return of 4.72% in 1 lot in just 1 week.Hope our call proved fruitful.

Today we also recommended to buy Bharti Airtel (Future) around 494 for target of 500 with stop loss of 490.Our called proved fruitful again and we were able to book profit of Rs 10200 in 1 Lot or return of 1.21% with a day in 1 lot.Hope you booked profit.

Today we also recommended to buy Kridhan Infra (cash) around 100 for target of 105--109 with stop loss of 97.Our called proved fruitful again and we were able to book profit and made  return of  5% with in a day.Hope you booked profit.


We had also recommended to buy SREI Infra (cash) around 105--104 for target of 109 with stop loss of 102.Our called proved fruitful again and we missed our target by a whisker  of 1.05 as it made high of 107.95.Hope you were still able to mint profit still.

Rest all call remains intact.....Maintain Stop loss and patience is the key

S&P 500 and NASDAQ 100 Forecast

S&P 500

The S&P 500 was relatively quiet during the trading session on Friday, as we had a shortened day on Wall Street. By breaking above the 2600 level though, it looks as if we are ready to go higher, and I think that short-term pullbacks will be nice buying opportunities for a market that has obviously been in an uptrend. By breaking above the 2600 level, we have cleared a bit of resistance, and I suspect that traders will continue to go long as we open on Monday. Longer-term, we will go to the 2650 level, and I think that the 2590 level underneath will be the bottom of significant support. With the US dollar falling in value, it’s likely that the S&P 500 will continue to go higher based upon the cheapness of US exports.

The 24-hour exponential moving average continues to offer significant support dynamically, every time we break above a, and technically speaking, it looks as if we are ready to go higher but we are likely needing to find value on those pullbacks. If we were to break down below the 2490 handle, I think that the market probably could go as low as 2580 next, but we should find even more support in that general region. In general, I am bullish of stock markets overall, as there seems to be a lot of algorithmic trading taken advantage of the bullish pressure that we have seen. Every time we dip, the buyers come rushing back, and quite frankly on Wall Street, it’s not uncommon to see the market open lower in the morning, and to find buyers later in the day. Until this pattern stops, I don’t see this market breaking down anytime soon. Buying continues to be the best way forward.

Dow Jones 30

The Dow Jones 30 initially went sideways during the trading session on Friday, popping just a bit, pulling back again, and then finding enough support at the 23,500 level to rally significantly. Because of this, it’s likely that the market will continue to find buyers underneath, and I think that the short-term pullbacks are going to continue to be picked up by algorithmic traders as well, as a “buy every dip” mentality has taken over Wall Street. The 23,500 level is very important, and if we break down below there I think we could drop another 250 points rather quickly. Overall, I think that we will eventually reach towards the 24,000 handle above, which of course has a certain amount of psychological importance as well. The Dow Jones 30 continues to plow along to the upside, and therefore I have no interest in shorting.

 

NASDAQ 100

By breaking above the 6400 level late during the trading session on Friday, the NASDAQ 100 looks very likely to continue the uptrend and go looking towards the 6450 level above. I think that pullbacks continue to find support at the 6380 handle, and that value hunters will be attracted to the NASDAQ 100 as it has shown so much in the way of resiliency. The stochastic oscillator is in the overbought area on the hourly chart, so a short-term pullback could present itself rather quickly. However, that pullback offers value, and if we can stay above the 6380 handle, there’s no reason to think about shorting this market. Longer-term, I anticipate that the 6500 level is going to be targeted, but that’s going to take a significant amount of time to get to. This will be especially true as we head into the holidays.

 

   

MARKET UPDATE:

Late recovery helps Sensex, Nifty close higher for 8th consecutive session

--The broader markets outperformed benchmarks with the Nifty Midcap rising half a percent. The market breadth was positive as about three shares advanced for every two shares declining on the BSE.--

--Equity benchmarks managed to extend uptrend for the eighth consecutive session Monday, with the Nifty reclaiming 10,400 level intraday led by late rebound in banking & financials. The market opened lower after the S&P reaffirmed India rating and weak Asian cues, but recouped losses in last hour of trade.--

--The 30-share BSE Sensex rose 45.20 points to 33,724.44 and the 50-share NSE Nifty gained 9.80 points at 10,399.50.--

--The market continued its uptrend but there could be volatility in coming sessions ahead of expiry of November derivative contracts, experts suggest.--

--The broader markets outperformed benchmarks with the Nifty Midcap rising half a percent to end at record closing high. The market breadth was positive as about three shares advanced for every two shares declining on the BSE.--

--Nifty Bank also ended at fresh record closing high of 25,891.95, up 0.44 percent. Axis Bank was up 2.55 percent as The Essar Group will repay debt of various financial institutions including Axis Bank through BPO business (Aegis) sale proceeds.--

--HDFC Bank, SBI, Kotak Mahindra Bank and Yes Bank gained 0.4-1 percent.--

--L&T rose half a percent as its construction subsidiary has bagged orders worth Rs 3,572 crore under transportation infrastructure, metallurgical & material handling, power transmission & distribution, and buildings & factories segments.--

--Oil India was up 1.3 percent and ONGC rallied 1.7 percent. Credit Suisse upgraded Oil India to outperform from neutral & raised target price to Rs 425 while it maintained outperform rating on ONGC with increased target price at Rs 220 (From Rs 190 per share).-

--"Oil around USD 60 per barrel is a sweet spot for both ONGC and Oil India with strong earnings and low subsidy risk in FY19," the research house said while raising EPS estimates for ONGC/OIL for FY18/19 by 8/2 percent and 10/9 percent, respectively.--

--Oil marketing companies - HPCL, BPCL and IOC were under pressure, falling 0.5-1.5 percent on marketing margin concerns.--

--NTPC, Bharti Infratel and Zee Entertainment among others gained 2-3 percent whereas Infosys, Tata Motors, Adani Ports, IndusInd Bank and Ambuja Cements fell around a percent each.--

--Mindtree jumped 7 percent as Credit Suisse upgraded the stock to outperform and increased target price on earnings growth hope.--

--Gujarat Heavy Chemicals surged 10 percent as DSP Blackrock Mutual Fund bought 9,50,528 equity shares at Rs 272 per share through a block deal on Friday.--

--Renewable energy stocks like Inox Wind, Suzlon Energy and Swelect Energy gained 6-11 percent while real estate stocks - Indiabulls Real, Mahindra Lifespace, Nitesh Estates and Peninsula Land surged 6-18 percent.--

MORE WILL UPDATE SOON!!