Page 9 - Deepak Nitrite News Today

Several major stocks achieved a significant milestone by surpassing their 200-day SMA, signaling potential shifts in their stock trends.

Since their highs in September, chemical stocks have underperformed the benchmarks and broader indices over the past month with larger players witnessing a 9-22 per cent fall during this period. Expectations of weak September quarter results amid high inventory, demand woes and weak realisations have led to the underperformance.

Analysts speaking at the Moneycontrol Mutual Fund Summit in Mumbai were agreed that despite current high valuations, there were sectors hiding in plain sight

“There is a mini bubble in the broader market and one needs to be selective about that. Do not be too quick to jump into an index which has gone up 35% and stocks that have gone up 3X-5X. Okay, the stock has corrected 5%, 10%, let it stabilise, do some homework and then start nibbling.”

While the mid and small cap saw sharp corrections on Monday, the fact is speciality chemical space has been in a very different kind of correction for the last two years. In the last five years many segments of the chemical and specialty chemical sector had been coming into focus. They stay in the limelight for some time, then as too much money chases them which makes their valuations move up sharply and then a long phase of correction after which strong players are able to move upward much fast...

A short build-up was seen in 71 stocks, including Astral, Indraprastha Gas, Dr Lal PathLabs, Ipca Laboratories and Oracle Financial

Stocks such as Aarti Industries, Atul, Fine Organic Industries, Sumitomo Chemical, and Vinati Organics have fallen 10-20% so far this year compared with a 9.5% gain in the Nifty index.

Jefferies maintained a buy rating on HDFC Bank with a target price of Rs 2030. Higher liquidity buffers drag margins, but it will improve from Q4 onwards.

If an investor had invested Rs 10,000 in the stock 10 years ago and stayed put, the investment would have swelled to nearly Rs 6.5 lakh, according to an analysis by ET Markets. In the last five-year period, the shares have jumped nearly 623% and about 374% in the past three years.

The options data suggests that the trading range for todays expiry is between 19,700 and 20,000. Nifty Put options OI concentration is the highest at 19,500 followed by 19,600 and 19,800 which are likely to act as support with the highest writing at 19,800 and 19,700 strikes.