Market Headstart: Nifty likely to open lower; HDFC, Voltas top buys

The Indian stock market is expected to open on a negative note on September 27 following weak global cues as US stocks slipped on Thursday as the release of a whistleblower report tied to the Democrats’ impeachment move against President Donald Trump kept uncertainty high, while trade comments from China’s top diplomat helped to limit losses.

Analysts are positive on the market and suggest to use the dips to make fresh bets.

"Nifty has the potential to test 11,700-11,800 in the near future, so any intermediate dip should be considered as a buying opportunity. We still see limited participation so suggest caution while choosing stocks," said Ajit Mishra, Vice President- Research at Religare Broking.

Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 33.5 points loss or 0.29 percent. Nifty futures were trading around 11,596.50 level on the Singaporean Exchange.

The Sensex index closed 396 points, or 1.03 percent, higher at 38,989.74, with 23 stocks in the green and 7 in the red. The overall market capitalisation of BSE-listed firms jumped to Rs 1,48,45,854.70 crore from Rs 1,46,88,763.39 crore on September 25, making investors richer by Rs 1.57 lakh crore in a single day.

The Indian currency also moved higher on September 26 due to some selling in greenback by banks and exporters. The rupee closed 16 paise up at 70.88 per dollar.

On the institutional front, foreign institutional investors (FIIs) bought shares worth Rs 737.17 crore, while domestic institutional investors (DIIs) also bought shares of worth Rs 339.28 crore in the Indian equity market on September 26, as per provisional data available on the NSE.

Stocks in news:

DHFL: Sources told CNBC TV18 that the company has presented a proposal which involves lenders taking over 60 percent stake in the company.

ITI: The public sector undertaking launched its cloud services and solutions platform for central and state government entities, banks, public sector undertakings, small and medium enterprises and startups in India.

Ruchira Papers: The company has declared a dividend of Rs 2.25 per share for FY19.

Unitech: The company has got a show-cause notice from Noida Authority.

Stocks that move out of F&O from September 27: Arvind, Birlasoft, Engineers India, Hindustan Zinc, IDBI Bank, Kajaria Ceramics, MCX India, Oracle Financial and Raymond.

Technical Recommendations:

We spoke to Mehul Kothari, Senior Technical Analyst at IndiaNivesh Securities and here’s what he has to recommend:

Voltas: Buy | LTP: Rs 680 | Target price: Rs 755 | Stop loss: Rs 620 | Upside: 11.4%

Container Corp: Buy | LTP: Rs 615.50 | Target price: Rs 715 | Stop loss: Rs 560 | Upside: 15.5%

HDFC: Buy | LTP: Rs 2,065.90 | Target price: Rs 2,220 | Stop loss: Rs 1,960 | Upside: 7.6%

(Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.)