Shaky start…Coal India IPO in focus!

Some have been thought brave because they were afraid to run away. - Thomas Fuller.

The bulls are bravely hanging on so far though we’ve had two weekly losses for the main indices. Today’s start is likely to be slightly shaky. It remains to be seen whether the indices manage to bounce back this week. The outlook is a little murky and calls for extra caution. Brace for some volatility too, as we are in the midst of an earnings season. The anxiety over global economy continues.



The opening of India’s biggest-ever IPO i.e. Coal India Ltd. will hog the limelight till it lists on the eve of Diwali. On the whole, the issue should sail through given its status as a blue chip state-run coal producer with robust existing business and compelling future prospects. How various financial markets cope with it would be watched closely.

Stock benchmarks in Japan are up while markets in China have seen a reversal after a strong start. Stocks in Shanghai are volatile. Other regional markets are in the red. Wall Street had a mixed session on Friday, with Google’s earnings propelling Nasdaq higher while the blue chips declined. The scene in Europe too remains indecisive.

The NSE Nifty went through volatile swings last week and has formed an inverted hammer. It ended in the negative terrain for the second straight week. With prevailing negative divergence on daily RSI and breach of critical support of 6150 on a closing basis, the Nifty has voided the positive trend for the near term.We would advocate caution and the immediate support is seen at around 5900.Overall, the trend may remain choppy with a slightly negative bias.

The BSE and the NSE have decided to implement ‘pre-market call auctions’. This is a special 15-minute trading window starting at 9 am from October 18. The main aim is to enable better price discovery in the market at the opening bell.

Shares of Commercial Engineers & Body Builders Co (CEBBCO), a manufacturer of vehicle and locomotive bodies for diverse applications for road and railways transportation, will list today.

Results Today: APL Apollo Tubes (formerly Bihar Tubes), Bajaj Finserv, Bajaj Finance, CRISIL, Camlin, Essar Oil, HDFC, Indiabulls Securities, ING Vysya Bank, L&T, NIIT Tech, Sesa Goa and Zydus Wellness.

The FIIs were net sellers of Rs1.12bn in the cash segment on Friday (provisionally), according to the NSE web site. Local funds were net sellers of Rs10bn. In the F&O segment, the foreign funds were net sellers at Rs1.79bn.