Today's Market Influencer :
Today Movement - Neutral to Positive
US market Future Indices are negative and Asia is positive as some progress is made in trade talks but IP is an issue which is slower progress than expected . The oil prices are at $62.53/bbl(-0.15%) as OPEC+ report came out providing for the cuts and showing demand to be strong and USDINR at 71.25(-0.01%) crude strength creates weakness but dollar index remained flat.
We expect markets to be Neutral to Positive as there will be anticipation rally pre-budget and results are coming inline with certain negative news.
LARSEN BUYBACK DENIED : L&T has proposed a buyback of amount aggregating to Rs. 9000cr (5% of market cap) three months ago but was pending approval with SEBI. SEBI has denied the buyback proposed citing that post the buyback debt (secured & unsecured) amounting to Rs. 123,533cr is twice free reserves and paid up capital amounting to Rs. 56,346 cr and cash of Rs. 7513cr . This is not compliant to regulations. This is Negative to shareholders and specially who took positions on this.
Recommend to sell for short and medium term holders. This it will set trend for heavy debt companies to not propose buyback but go for dividends which has higher tax outgo.
Important Day Close Level is 10727/10951
Stock of the Day :
HDFC Bank Ltd. - Stop Loss 2100/2080 & Target - 2149/2192/2210
HDFC Bank NIM have growth 18% YoY and 9% QoQ despite increase in cost of funds. Net Profit growth has grown 20% YoY & 11% Qoq. Asset quality has been stable with slight increase in GNPA from 1.33% to 1.38% QoQ and Net NPA 0.42% from 0.40% as some assets of IL&FS would have been recognised.
EBIT growth has been supported with Treasury EBIT growth of 58% YoY and Other Banking Operations ( Ex- Lending) EBIT growth of 37%.
We would be positive for intraday trade.
POSITIONAL NIFTY LEVEL :
ALERT : PREVIOUSLY NIFTY CLOSED NEAR ALL IMPORTANT LEVELS INDICATING THERE WAS NO CLEAR SIGN OR BREAKING THE RANGE . WE SEE SOME UPSIDE WITH GLOBAL MARKETS AND WE HAVE STARTED INVESTED SOME CASH WHICH IS AT 30% LEVEL AS OF NOW.
Note : These are derived from an Internal Indicator and any movement or close below/above Support/Resistance of one time period moves the Support/Resistance to next time period.
Example : if current market levels is below or above 2 min levels then immediate levels to keep watch are 30 Min levels.