Indian markets rose on Tuesday to their highest close in
nearly two weeks, led by gains in lenders after the Reserve bank of India cut
an overnight interest rate on Monday, further unwinding extraordinary measures
taken to defend the rupee. The benchmark BSE index closed up 0.44 percent, or
88.51 points, at 19,983.61 after rising as much as 1.3 percent. The broader NSE
index rose 0.38 percent, or 22.25 points, to end at 5,928.40.
European shares closed lower on Tuesday as the partial US
government shutdown, now in its eighth day, continued to weigh on investor
sentiment. US Stocks finished sharply lower for a second session Tuesday, with
major averages hitting one-month lows, as investors digested comments from
President Barack Obama on the ongoing political impasse in Washington.
Global cues are subdued today with them SGX Nifty is showing
40 points cut in morning trade indicating that Indian market would open soft
today and Nifty is likely to trade range bound between 5950 and 5840.
█ European Markets █
European markets too closed with cuts. The FTSE 300 Index
closed provisionally down 0.7 percent to 1,232.61 points, with Britain's FTSE
100 closing down 1 percent, a fresh three-month low.
█
Asian Markets █
Japan's Nikkei, the Shanghai Composite and Australia's
S&P ASX 200 all erased their early losses to enter into positive territory
and South Korea is shut for a public holiday.
√ Reliance Communications (RComm)
Buy Reliance Communications at CMP, Stoploss Rs 145
Rationale: Reliance
Communications has made a double bottom formation near to Rs 144 and yesterday
it witnessed good buying interest, made morning star pattern on daily chart, so
one may see further recovery. The stock can test Rs 156 in next one-two trading
sessions.
√ Punj Lloyd
Buy Punj Lloyd at CMP, Stoploss Rs 26
Rationale: Punj Lloyd has broken the neckline of inverse head and
shoulder pattern on the daily chart with good volumes so one may see further
recovery. The stock can test Rs 31 in next one-two trading sessions.
√ ITC
ITC Buy ITC, Target Rs 375 and Stoploss Rs 335
Rationale: The stock has given flag pattern breakout with
good volumes placed on its daily chart. Technical oscillators are also trading
with a positive bias.
√ Escorts
Buy Escorts, Target Rs 99 and Stoploss 91
Rationale: The stock had a terrific rally in early August
from Rs 66 to Rs 94 levels and thereafter for the next four weeks the stock
consolidated at the top, which is considered to be a bullish sign.
√ Bajaj Finserv
Buy Bajaj Finserv above Rs 630, Target Rs 655 and Stoploss Rs
620
Rationale: For last two months the stock has been moving in
a range, buying opportunities were also limited because this stock was moving
in a range bound consolidation phase. On Tuesday a narrow and range bound trade
has broken on the upside. We can also see a rounding bottom formation.
√ IDFC
Sell IDFC, Target Rs 88 and Stoploss Rs 100
Rationale: The stock has reverted from its trend line
resistance placed on its daily chart. Derivatives data also indicates short
build-up in the stock.
