Some small-cap stocks held by ETF bet big on a high-alpha strategy
Kotak Nifty Alpha 50 ETF tracks the top 50 stocks in terms of high alpha chosen from the top 300 companies
“COMEX gold trades mixed near $1,710/oz as market players assess US jobs report in light of Fed’s monetary tightening stance. Weighing on price is firmness in the US dollar which is holding near 2002 high, weaker investor interest and concerns about consumer demand in China. However, supporting price are Europe’s power crisis, China’s virus spread and renewed US-China tensions. The general outlook for gold remains weak however with market players positioning for ECB meeting this week some correction in the US dollar and recovery in gold can’t be ruled out.” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking
Nifty formed a sideways inside day formation following the long Bullish candle registered on Aug 30, also there are evidence of reversal pattern in weekly time frame hence in coming sessions, key thing to watch will be a faster retracement above August highs of 18,000 that will signal end of the ongoing corrective phase. Else, prolonged consolidation in 17,200-17,800 range is expected to continue. On the oscillator front, the 14-period RSI has witnessed a sell crossover and presently trading below the 60-level mark. Thus, one need to avoid trading aggressively amid global nervousness.
Reliance Power jumps 8%
Reliance Power was up 8% after the company and its unit signed a pact with Varde Partners to raise as much as Rs 1,200 crore in debt. The funds will be used to refinance existing debt of Reliance Power; drawdown pending finalization and execution of binding documents and approvals, the company said in an exchange filing
MC Interview | Nifty at record high by Diwali seems to be realistic, stay away from metals, says Sameet Chavan of Angel One
Sameet Chavan says the volatility index India VIX is already in declining mode and is currently at sub-20 levels. Angel One expects it to subside further and settle around the 16 mark, which is a sign…
ICICI Bank up 1.5%
The stock rose after media reports said the private sector lender plans to raise up to Rs 10,000 crore through infrastructure bonds for project financing and affordable housing. Rating agency ICRA has assigned “AAA” rating to the proposed infrastructure bond offering by the lender.
Shares of Yes Bank gain 4%
Mint report said the Ritz Carlton hotel in Bengaluru, developed by NEL Holdings South Ltd (formerly Nitesh Estates), could see a change in ownership as Yes Bank plans to take over the property over non-payment of Rs300 crore in loans. Following the report, the stock climbed 4%.
Steel stocks rally
Indian steel stocks rose on the back of surge in global iron ore prices, which surged over 3 percent. The rise in iron ore prices is positve for domestic manufacturers as iron ore is a critical raw material in the manufacturing of steel. Investors expect producers to pass on the increase in iron ore prices to the end consumers that may help improve profitability of these companies in the coming quarters.
Shares of Reliance Industries rose after brokerage firm Morgan Stanley claimed that the company’s new investments could double its net profit by 2027. The brokerage firm believes RIL is entering its fourth capex cycle in this century with an investment of $50 billion over the next three years in retail, telecom, petchem and green energy. The brokerage has retained its overweight rating and price target of Rs 3,085 on the stock.
SP Group stocks under selling pressure
Gokak Textiles Ltd fell 3%, Forbes & Company Ltd dropped 3%, Eureka Forbes Ltd lost 2%, Sterling and Wilson Renewable Energy Ltd down 0.1%, Vascon Engineers Ltd up 0.1%.
Barring pharma, all sectoral indices traded with gains
