Closing Bell: Sensex rises by 446 points, Nifty ends at 17,822, ONGC surges.

Closing Bell: Sensex rises by 446 points, Nifty ends at 17,822, ONGC surges.
by 5paisa Research Team 05/10/2021

Domestic benchmark indices ended higher in the second consecutive session on October 5, 2021, amid mixed global cues.

Domestic benchmark indices ended higher in the second consecutive session on October 5, 2021, amid mixed global cues. At the closing bell, the Sensex was up 445.56 points or 0.75% at 59,744.88, and the Nifty was up 131 points or 0.74% at 17,822.30. Around 2025 shares advanced, while 1184 shares declined in today's trading.

Among the top gainers today were, ONGC, IndusInd Bank, Coal India, IOC and Bharti Airtel. Top losers include Cipla, Hindalco, Shree Cements, Sun Pharma and Tata Consumer Products.

On the sectoral indices except for PSU bank, realty and pharma, all other sectoral indices ended in the green. Oil & gas, power and IT indices rose by 1-3%. BSE midcap and smallcap indices ended in the green. ONGC, NTPC, Power Grid Corporation of India, SBIN, ITC and Tata Steel were the toppers in terms of volumes.

A sharp buying interest in oil and gas, IT and a few financial shares pushed the market higher, however, weakness in pharmaceutical and PSU banking counters was witnessed.

The stocks of Reliance Industries and Titan have made fresh 52-week high prices on Tuesday.

Reliance Industries market cap neared Rs 17.5 lakh crore as shares hit a record high. Reliance Industries shares surged to a new record high on Tuesday, cementing the conglomerate's position as India's most valuable company.

According to analysts, hopes of strong September quarter earnings, which will start with IT giant TCS and continuation of dovish monetary policy from the Reserve Bank of India lifted investors' sentiment in today's trade.

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Top swing trading ideas you should not miss.

Top swing trading ideas you should not miss.
by 5paisa Research Team 05/10/2021

Best Swing Trading ideas based on price and volume percentage surge. Piramal Enterprises, Mahindra Logistics, Coromandel International.

Price and volume are two of the most prominent inputs used by traders across the world while swing trading. When used in isolation, they reveal very little but when used in conjunction, they help us to sort the wheat from the chaff. So, this swing trading system is based on the deadly combination of price and volume percentage surge, which helps us to discover high probability swing-trading candidates.

So, here is the list of stocks that fulfil the criteria of volume and price surge and as a result, they flash in our swing-trading system: 

  1. Piramal Enterprises: The stock hit a fresh 52-week high on Tuesday as it gained more than 4%. The stock has witnessed a breakout of 38-days long consolidation with a sizable bullish bar, moreover, volumes for the day were not only higher than its previous trading session, but it was also highest since August 09. The stock’s daily range was greater than its 10-days average range, which resulted in meeting the norms of the swing trading system. In the near term, the stock has the potential to touch levels of Rs 3000 followed by Rs 3075, while on the downside the support is seen around levels of Rs 2830.

  1. Mahindra Logistics: The stock jumped 6% on Tuesday. The stocks' daily range on Tuesday was greater than its 10-days average range. Additionally, the volume for the day was greater than its previous trading session and in fact volumes for the day were highest since September 22. With price and volume criteria met, this stock looks ripe for a good up-move in the coming days, hence, swing traders can keep this on the radar for up-move towards the level of Rs 805-821, while immediate support is seen around Rs 750.

  1. Coromandel International: The stock had gained nearly 3.5% on Tuesday and with this, it had witnessed a breakout of the symmetrical triangle pattern. Interestingly, the breakout has been witnessed along with a huge jump in the volumes as volumes were higher than its previous trading session. Besides, it was higher than 10 and 30-days average volume. In addition to this, the daily range of the stock was greater than its 10-days average range. As a result, the stock has met the criteria of our trading system, Swing traders should not miss this stock as it can touch levels of Rs 860 in the near term followed by Rs 884 in the medium term. On the downside, support is seen around Rs 798 levels.

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Is it the right time to increase exposure to hybrid funds?.

Is it the right time to increase exposure to hybrid funds?.
by 5paisa Research Team 05/10/2021

In the last three months, the asset under management (AUM) of funds dedicated to the Hybrid category has increased by 13%.

When the equity market is trading at a lofty valuation, most of the investors either book profit or do a rebalancing of their portfolio. Nevertheless, some investors do not disturb their existing investment or portfolio and invest the additional amount towards hybrid funds. These are the funds that invest in a mix of equity, debt and other commodities also such as gold.  In the last three months ending August 2021, asset under management (AUM) of funds dedicated to the Hybrid category has increased by 13%.

AUM of Hybrid Funds  

 

 

 

 

Category  

Jun-21  

Jul-21  

Aug-21  

Increase  

Conservative Hybrid Fund  

                14,563.55   

17,079.50  

17,378.04  

19.3%  

Balanced Hybrid Fund/Aggressive Hybrid Fund  

            1,31,474.85   

1,35,589.18  

1,40,797.39  

7.1%  

Dynamic Asset Allocation/Balanced Advantage Fund  

            1,19,262.08   

1,22,591.86  

1,41,492.63  

18.6%  

Multi Asset Allocation Fund  

                16,072.70   

16,432.03  

17,059.05  

6.1%  

Arbitrage Fund  

                94,840.95   

1,08,177.88  

1,08,251.29  

14.1%  

Equity Savings Fund  

                11,379.89   

12,031.15  

13,135.98  

15.4%  

   

            3,87,594.01   

           4,11,901.60   

          4,38,114.38   

13.0%  

Source: AMFI  

   

   

   

   

The highest increase in AUM in absolute terms was observed in the Dynamic Asset Allocation/Balanced Advantage Fund. They saw an increase of almost 19% in their AUM in the last three months. This is considered to be the best and most suited category in an uncertain market. As opposed to static allocation funds, the dynamic funding mechanism of the category helps the fund to be in a better position to exploit the opportunity.

Conservative Hybrid Fund also saw more than 19.3% growth in their AUM albeit at a lower base. These funds are suited for a conservative investor as they have major exposure to debt and lower exposure to equity.

Looking at the current market situation and different options available within the hybrid fund, investors may go for it. They can choose the right hybrid fund category depending upon their risk profile. These funds will help you to diversify your investment and also lower investment risk along with better portfolio management.

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Chart Busters: Top trading set-ups to watch out for Wednesday.

Chart Busters: Top trading set-ups to watch out for Wednesday.
by 5paisa Research Team 06/10/2021

The benchmark index Nifty has witnessed follow up move after the formation of a Morning Star like candlestick pattern. Interestingly, the index has retraced more than 61.8% of its prior downward move which is started from all time high level of 17947.65 to the low of 17452.90 level.

Here are the top trading set-ups to watch out for Wednesday.

Ador Welding: The stock has formed a Gravestone Doji candlestick pattern as of July 16, 2021, and thereafter witnessed correction along with low volume. The correction is halted near the 38.2% Fibonacci retracement level of its prior upward move, and it coincides with its 13-week EMA level. On Tuesday, the stock has given a 31-days consolidation breakout on the daily chart. The volume was expanded by over 5 times of 50-days average volume, which indicates important buying interest. The 50-days average volume was 16145 while today the stock has registered a total volume of 83200. Interestingly, the daily RSI has also given a consolidation breakout, which is a bullish sign. The weekly RSI has given bullish crossover in the super bullish zone. Recently, the daily MACD line just crossed the signal line, and the histogram became green. On the daily timeframe, ADX is 12.20 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI. Hence, we would advise the traders to be with a bullish bias. On the downside, the zone of Rs 665-Rs 680 is likely to act as crucial support for the stock. While on the upside, the level of Rs 782 may act as immediate resistance for the stock.

Bhageria Industries: The stock has formed Doji candlestick pattern as on the weekend of July 23, 2021, and thereafter witnessed correction. The correction is halted near the 50% Fibonacci retracement level of its prior upward move, and it coincides with the 20-week EMA level. The stock has formed a strong base near the 20-week EMA and thereafter initiated its upward journey. On Tuesday, the stock has given cup pattern breakout on the daily chart. The length of the cup pattern was 10-weeks, and the depth of the pattern was about 26%. This breakout was supported by robust volume. Additionally, the stock had formed an opening bullish Marubozu candle on breakout day, which adds strength to it. The opening bullish Marubozu candle has no shadow extending from the open price end of the body. Opening bullish Marubozu candle indicates extreme bullishness. The momentum indicators and oscillators are also suggesting bullish momentum. The weekly RSI has taken support near the 60 zone and bounced sharply. The daily RSI has surged above its prior swing high. The daily MACD stays bullish as it is trading above its zero line and signal line. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. Going ahead, the zone of Rs 280-Rs 271 level is a crucial support area and the level of Rs 350-Rs 355 is a resistance. zone.

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Here’s what you need to know before the market opens on October 06, 2021.

Here’s what you need to know before the market opens on October 06, 2021.
by 5paisa Research Team 06/10/2021

Opening Bell: Here’s what you need to know before the market opens on October 06, 2021.   

Moody’s has upgraded its outlook on India’s Sovereign ratings to stable from negative.

Indian equity markets are likely to start Wednesday with a slightly negative bias as the SGX Nifty is seen trading down by 28.50 points or 0.16% at 17,790 levels. However, like in the recent past, we have seen dips are being bought, and expect a similar kind of trend to continue on Wednesday as well. The big news which could act as music to the ears of the bulls is that rating agency Moody’s has upgraded its outlook on India’s sovereign ratings to stable from negative.

Cues from Asian markets: Majority of the Asian stock markets were trading in red on Wednesday. Japan’s Nikkei 225 was down by 0.96% and Hong Kong’s Hang Seng has shed 0.93%.

Overnight cues from US markets: It was a green day on Wall Street as all three major US stocks indices ended the session in positive terrain. A report released indicated that the US service sector surprisingly grew a tad faster in September. The tech-heavy Nasdaq led from the front as it jumped 1.3% followed by S&P 500 and the Dow which added 1.1% and 0.9%, respectively. Usually, it is believed that bonds yield and stock price have an inverse relationship to each other, however, on Tuesday both bond yields and the stock price rose. The 10-year US Treasury bond yield moved above 1.5%.

Last session summary: On Tuesday, Indian benchmark indices ended in green for a second straight day. The Sensex and Nifty closed up by 0.75% and 0.74%, respectively. Reliance Industries and TCS combinedly contributed nearly 56 points to Nifty’s kitty.

Among the sectoral indices, Nifty Energy and IT were the top gainers. On other hand, Nifty Realty and Nifty Pharma were top losers.

FII’s and DII’s activity on Tuesday: FIIs were net sellers to the tune of Rs 1,915.08 crore on Tuesday. On other hand, DIIs were net buyers to the tune of Rs 1,868.23 crore.

Important corporate events to watch out for: Board Meeting of Nazara Technologies and Inox Wind is scheduled on October 6 to consider fundraising and other business matters.

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5 Stocks to Buy Today: October 6, 2021

5 Stocks to Buy Today: October 6, 2021
by 5paisa Research Team 06/10/2021

Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Read on to know the momentum stocks to buy today. The average holding period could be between 7-10 days on average.

List of 5 Stocks to Buy Today October 6

1. Nazara Technologies (NAZARA)

Nazara Technologies Stock Details for Today

- Current Market Price: Rs.2,849

- Stop Loss: Rs. 2,430

- Target 1: Rs. 2,560

- Target 2: Rs. 2,655

- Holding Period: One week

5paisa Recommendation: Our technical experts see end in sideways move of the stock hence making this stock best stock to buy.

 

2. MSTC LTD (MSTCLTD)

MSTC LTD Stock Details for Today: 

- Current Market Price: Rs. 331

- Stop Loss: Rs. 323

- Target 1: Rs. 340

- Target 2: Rs. 353

- Holding Period: 1 week

5paisa Recommendation: Our technical experts expects further buying in the stock and recommends buying this stock.

 

3. SBI LIFE (SBILIFE)

SBI LIFE Stock Details for Today: 

- Current Market Price: Rs. 1,262

- Stop Loss: Rs. 1,225

- Target 1: Rs.1,294

- Target 2: Rs. 1,330

- Holding Period: 1 week

5paisa Recommendation: Positive momentum in stock is expected and thus making this stock as one of the best stocks to buy today.

 

4. INDUSIND BANK (INDUSINDBK)

INDUSIND BANK Stock Details for Today: 

- Current Market Price: Rs. 1,169

- Stop Loss: Rs. 1,134

- Target 1: Rs. 1,200

- Target 2: Rs. 1,240

- Holding Period: 1 week

5paisa Recommendation: Positive momentum in stock is expected and thus making this stock as one of the best stocks to buy today.

 

5. Vinati Organics (VINATIORGA)

Vinati Organics Stock Details for Today: 

- Current Market Price: Rs. 2,024

- Stop Loss: Rs. 1,972

- Target 1: Rs. 2,070

- Target 1: Rs. 2,164

- Holding Period: 1 week

5paisa Recommendation: Our technical experts see strong volume in this stock hence making this stock best stock to buy.

 

Share Market Today

SGX NIFTY: 

SGX Nifty indicates positive opening for Indian markets. SGX Nifty is at 17,789.80 levels, higher 74.75 points. (Updated at 7:46 AM).

International Markets:

US Market: US markets bounce back with Dow Jones closing higher by 300 points while Nasdaq gains 1.25% as it sees short covering from oversold levels.

The rotation of money from big technology stocks into energy and financials may continue in the short term which could see more volatility ahead. Bond yields rise to 1.54% even as the US$ index regains strength to hit 3-month highs at 94.07.

Asian Market: Asian markets opened in the red led by the Japanese 'Nikkei' which continues to struggle for direction as it trades lower by 200 points in early trade.

South Korea and Taiwan markets also struggle as technology stocks overhang in the US hurts sentiment in Asia. Chinese stocks have been on holiday for this week and could set the tone for Asian markets next week.

Disclaimer: The above report is compiled from information available on the public platforms.