Market Headstart: Nifty seen opening flat; Bharti Airtel, HUL top buys

The Nifty50 is expected to open flat on October 14, but the trend should favour bulls as most of the Asian markets are trading with positive bias as signs of progress in the Sino-US trade standoff boosted risk appetite.

The sentiment was boosted when US President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike though officials on both sides said much more work needed to be done, said a Reuters report.

The S&P BSE Sensex rose 246 points to 38,127 while the Nifty50 closed 70 points higher at 11,305 on October 11.

Trends on SGX Nifty indicate a flat opening for the broader index in India, with a 24 points loss or 0.21 percent. The Nifty futures were trading around 11,285-level on the Singaporean Exchange.

The rupee pared early morning gains to settle higher by 5 paise at 71.02 against the US dollar on October 11 as a sudden spike in Brent crude prices following missiles attack on an Iranian oil tanker weighed on investor sentiment.

On the institutional front, FPIs were net buyers in Indian markets for Rs 749 cr while DIIs were net sellers to the tune of Rs 703 cr, provisional data showed.

The World Bank on October 13 slashed its growth forecast for India’s current fiscal year to 6 percent, down from 7.5 percent, amid slowdown woes.

Stocks in news

Avenue Supermarts, which owns and operates the D-Mart supermarket chain, on October 12 posted a 47.54 percent year-on-year rise in net profit at Rs 322.63 crore for the quarter ended in September.

Lupin, India’s third-largest drugmaker, said it planned to file two biosimilar drugs Etanercept and Pegfilgrastim in the US market by the fourth quarter of FY20.

Infosys reported a 5.8 percent sequential growth in Q2 FY20 with its net profit at Rs 4,019 crore. The management, on October 11, also revised its full-year constant currency revenue growth guidance to 9-10 percent, up from 8.5-10 percent earlier.

Technical Recommendations

We spoke to Axis Securities and here is what they have to recommend:

Bharti Airtel: Buy | LTP: 382.65 | Target: Rs 412-422 | Stop Loss: Rs 361 | Upside 10 percent

Amber Enterprises: Buy | LTP: Rs 928.50 | Target: Rs 995 | Stop Loss: Rs 880 | Upside 7 percent

Hindustan Unilever: Buy | LTP: Rs 2,004.75 | Target: Rs 2,110 | Stop Loss: Rs 1,925 | Upside 5 percent

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