The market remained rangebound as investors monitor developments over trade tariffs between the world's largest economies US and China.
Index heavyweights Reliance Industries, Infosys, ICICI Bank and HDFC continued to support the market while FMCG and select banks stocks are under pressureThe sectoral trend remained mixed with the PSU Bank index falling over a percent.
The Nifty continues to remain in a range - the broader range for the overall direction of the markets is about 350 points. The support is at 10,550 and the resistance is at 10,900. We are vacillating within this range since the beginning of this month.
From a trading perspective the trimmed version of this range would be 10,700 - 10,850, a 150 points. This is usually not really a task for the index. However, these are testing times and a trader must be cautious on these levels being respected.
The good news however is that a one sided move would be expected if either levels are crossed which would then promise a delightful trade.
The company has a strong financial profile reflected in robust debt protection metrics and gearing of less than 1 times. The company is approaching the end of its large capex plan in its petrochemical & refining and telecom segments. This capital expenditure is mainly to strengthen its refinery and petrochemicals business and in the pan-India telecom and broadband services through Reliance Jio Infocomm, it added.
“RIL’s capex of USD 18.5 billion in Refining and Chemicals is nearing completion. Some projects are already operational, and will boost EBITDA in the core business over FY17-20E. During the last five years, high capex in Telecom and Core business has dragged RIL's free cash flow. Rising dividend payouts are likely hereon. Jio continues to gain 4G subscriber share, making us constructive on the business,” HDFC Securities said in Q4FY18 results update. The brokerage firm maintains ‘buy’ rating on the stock with 12 month SOTP-based target price of Rs 1,178.
The 30-share BSE Sensex rose 23.19 points to 35,570.52 and the 50-share NSE Nifty gained 4.20 points at 10,776.20.The market breadth is in favour of declines as about 1,069 shares slipped against 823 advancing shares on the BSE.
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