Gold price today: Yellow metal rises, could retest Rs 51,600-51,800 on upside
India October gold Futures rose sharply above Rs 51,500 and if the momentum continues, experts say the yellow metal can retest Rs 51,600-51,800.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking: We continue to remain cautious and still do not expect the Nifty to surpass the sturdy wall of 11,650-11,700 soon. Going forward, 11,480-11,450 would be seen as crucial support and a move below this would trigger some decent correction thereafter. Also, we would like to draw attention towards the ‘US Dollar Index’ which has corrected significantly in the last couple of months. Since US Dollar Index and Equity markets are inversely correlated, any surge in this would lead to correction in our markets. Hence, it is important to take a note of this development as well.
We did not see any broader market sell off yesterday. There were a number of themes who were bucking the trend throughout the day. But we still advise caution and even if one wants to participate in such potential movers, avoid aggressive bets and look to book timely profits or exit if it does not turn out to be a favorable trade.
Buzzing Stock: Finolex Cables share price gained 2 percent after Jefferies maintained a buy call on the stock. The research firm has retained buy on the stock with target of Rs 415 per share. It is of the view that the company posted 17 percent YoY growth in net profit despite March disruption in FY20, according to a CNBC-TV18 report.
Buzzing Stock: Essel Propack share price fell over 5 percent after Blackstone eyes selling stake in the packaging firm. The world’s biggest alternative asset manager is looking to sell a large chunk of its shareholding in the packaging firm through block trades. The deal could fetch the investor as much as USD 251 million.
Market opens: Sensex is up 162.45 points or 0.42 percent at 39142.30, and the Nifty gained 62.90 points or 0.55 percent at 11579. Cipla, Dr Reddy’s Labs, Sun Pharma and Tata Steel are the top gainers while Essel Propack, Reliance Industries and Lupin are the most active stocks.
Among the sectors, the pharma index gained 2 percent followed by auto and banks. The midcap and smallcap indices added half a percent each.
HDFC Bank in focus: Two US-based law firms announced filing of class action lawsuit against bank. Rosen & Schall Law Firms File Suits against Bank for false, misleading information. Both firms had announced probe into claims against HDFC Bank leading to lawsuit, CNBC-TV18 reported.
Top buy and sell ideas by Ashwani Gujral, Mitesh Thakkar for short term
Ashwani Gujral of ashwanigujral.com recommends buying Apollo Hospitals with a stop loss of Rs 1,750, target at Rs 1,830 and Zee Entertainment with a stop loss of Rs 215, target at Rs 232.
ICICIdirect on market outlook: Nifty opened with a lower gap on September 17 and remained highly volatile with a negative bias throughout the day. Sectorally, action was seen in pharma and technology stocks while profit taking was seen in auto, BFSI and metal stocks. However, on the options front 11,500 Put has maximum OI. This should act as strong support on downsides. The major Put base is at 11,500 strike with almost 31 lakh shares while the major Call base is at the 11,600 strike with almost 29 lakh shares.
Bank Nifty future saw sideways trade but remained firm above 22,000 throughout the day. Most private and midcap banks witnessed supply from higher levels. From the options space, additions were seen in 23,000 and 23,500 strike Call, which is the resistance area, whereas support for the Bank Nifty is at 22,000.
Hot Stocks | Page Industries, Bata India two buy calls for the short-term
With the derivatives expiry next week, the market is expected to trade volatile with rollover movement in individual sectors and stocks.
Oil price update: Oil prices drifted lower on Friday, pausing after three days of gains, as producers prepared to resume operations in the Gulf of Mexico and data showed Saudi Arabian exports rose from record lows. Brent crude was down 6 cents at $43.24 a barrel by 0112 GMT, while US oil futures dropped 6 cents to $40.91 a barrel.