Moneycontrol
Get App
Last Updated : May 21, 2019 07:12 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | After sharp rally, there is high possibility of some consolidation till May 23

A sharp decline in VIX has given comfort to bulls with stability into the market, experts said.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

There were no Monday blues for sure on D-St – it was indeed a blockbuster day for Indian markets. The best day for Sensex, Nifty in the past 10 years. Both Sensex and Nifty surpassed their crucial resistance levels to hit fresh closing high on Monday

Investors’ wealth rose by more than Rs 5 lakh crore in just one session. The average market capitalisation of the BSE listed companies rose to Rs 151.93 lakh crore on May 20 compared to Rs 146.58 lakh crore recorded on May 17, Friday.

Close

Nifty Bank hit a record high of 30,827 before closing the day at 30,759, up 1,309 points. Strong gains were seen in stocks like Bank of Baroda (up 9.4 percent), IndusInd Bank (up 8.8 percent), SBI (up 7.9 percent) and Yes Bank (7 percent).

More than 50 stock hit a 52-week high on the BSE that include Bajaj Finserv, Shree Cements, Bajaj Finance, HDFC Bank, HDFC, Kotak Bank, Titan Company, Axis Bank, ICICI Bank, SBI and DCB Bank, among others.

The rupee Monday appreciated by 49 paise, the biggest single-day gain in two months, to close at 69.74 against the US dollar following sharp gains in equities and forex inflows after exit polls suggested another term for the ruling NDA government.

On the institutional front, FIIs were net buyers in Indian markets for Rs 1734 crore while DIIs were net sellers to the tune of Rs 542 crore, provisional data showed.

Big News:

On the earnings front, as many as 96 companies will declare their results for the March quarter which include names like Bharat Financial, BOSCH, CARE Ratings, DLF, Tech Mahindra, Timken India, Vaibhav Global, KEI Industries, JSPL, and Aarti Industries etc. among others.

Tech Mahindra: PAT likely to fall by over 1% YoY to Rs 1209 crore

BOSCH: PAT likely to fall by over 11% YoY to Rs 440 crore

(All the estimates are from Motilal Oswal)

Technical View:

Nifty formed a strong bullish candle on the daily charts

The Supertrend indicator and MACD have given a bullish crossover that suggests that bulls likely to dictate short term trend on D-Street. The index is just 28 points away from its all-time high of 11,856 recorded in April.

Nifty is now trading above most of its short term moving averages. Most experts feel that after a sharp rally, there is a high possibility of some consolidation till May 23.

India VIX fell down sharply by 16.13 percent during the session after hitting 29.33. A sharp decline in VIX has given comfort to bulls with stability into the market, suggest experts.

Three levels: 11,591, 11856, 12000

Max Call OI: 12000, 12500

Max Put OI: 11000, 11500

Stocks in news:

Tata Motors has reported a 49 percent fall in its consolidated net profit at Rs 1,108 crore. The company had reported a profit of Rs 2,175 crore in a year ago period.

Hindustan Petroleum Corp Ltd (HPCL) on May 20 reported a 70 percent jump in its fourth-quarter net profit as inventory gains and rupee appreciation negated a dip in refinery margins.

Infrastructure major Larsen and Toubro (L&T) on May 20 acquired 73,953 shares of Mindtree from the open market, taking its shareholding in the IT services firm to 26.53 percent, according to a regulatory filing.

Technical Recommendations:

We spoke to HDFC Securities and here's what they have to recommend:

State Bank of India: Buy| LTP: Rs 344.7| Target: Rs 400| Stop-Loss: Rs 320| Upside 16%

Axis Bank: Buy| LTP: Rs 782| Target: Rs 860| Stop-Loss: Rs 750| Upside 10%

Larsen & Toubro: Buy| LTP: Rs 1451| Target: Rs 1650| Stop-Loss: Rs 1350| Upside 14%

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

Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on May 21, 2019 07:12 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant