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Last Updated : Apr 22, 2019 07:41 AM IST | Source: Moneycontrol.com

A morning walk down D-St: Rising crude oil could be spoiler, appreciating rupee plays balancing act

The only spoiler for the market is crude oil which is in its 7th-week of consecutive gains. Though appreciating rupee balances the sentiment for the equity market, suggest experts

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It might not have been a photo finish to the truncated week but the good part is that we hit a record high and Nifty50 rose about 1 percent. The S&P BSE Sensex and Nifty50 rallied about 1 percent for the week ended April 18.

Indian markets witnessed profit booking as both Sensex and Nifty climbed fresh record highs in the morning trade before diving.

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The S&P BSE Sensex hit a record high of 39,487.45 while the Nifty50 rose to a life high of 11,856.15 in the early trade.

The only spoiler for the market is crude oil which is in its 7th-week of consecutive gains. Though appreciating rupee balances the sentiment for the equity market, suggest experts.

The Indian rupee on April 19 staged a strong comeback by regaining 25 paise to 69.35 against the US dollar after three sessions of losses amid sustained foreign fund inflows.

Options data suggest we may see a narrow range for the market with the highest OI standing at 11,900 and 11,700. A breach of this on the upside or lower levels should be used for buying the current momentum.

FPI were net buyers in Indian equity markets for Rs 1,038 crore while DIIs were net sellers for Rs 337 crore, provisional data showed.

Big news:

As many as 15 companies on the BSE will declare their results for the quarter ended March including AU Small Finance, Mahindra Lifespace, Shiva Cement among others.

AU Small Finance: PAT likely to rise 27% YoY to Rs 105 crore.

(Estimate is from Motilal Oswal)

Stocks in news:

Reliance Industries: RIL will be in focus post Q4 results. The oil & gas major reported a 9.8 percent growth in fourth quarter consolidated net profit to Rs 10,362 crore. The company attributed the robust revenue performance to strong growth in its retail and digital services businesses which grew 51.6 percent and 61.6 percent, respectively.

GVK Power and Infrastructure on April 18 said it agreed to offer 49 percent stake in GVK Airport Holdings in favour of Abu Dhabi Investment Authority (ADIA) and the National Investment and Infrastructure Fund (NIIF).

State Bank of India on April 18 said it plans to raise $2.5 billion (about Rs 17,000 crore) through bonds to fund the expansion of the overseas business.

Technical view:

Nifty formed a ‘Dark Cloud Cover’ pattern.

India VIX moved up by 4.48 percent at 22.66. A sudden spike in VIX indicates limited upside with a volatile swing in the market.

For bulls to remain in control they have to push the Nifty back above 11,856 that would take the index towards 12,000 whereas a bearish candle on April 22 could fuel further profit taking, suggest experts.

Three levels: 11738, 11856, 11900

Max Call OI: 12000, 11800

Max Put OI: 11500, 11000

Technical Recommendations:

We spoke to Bonanza Portfolio and here’s what they have to recommend:

Hero MotoCorp: Buy| LTP: Rs 2,739.65| Target: Rs 2,950| Stop loss: Rs 2,640| Return: 7.66 percent

IndusInd Bank: Buy| LTP: Rs 1,764| Target: Rs 1,942| Stop loss: Rs 1,749| Return: 10 percent

HUL: Buy| LTP: Rs 1,737.45 | Target: Rs 1,842| Stop loss: Rs 1,679| Return: 6 percent

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

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

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First Published on Apr 22, 2019 07:35 am
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