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Last Updated : Jul 10, 2019 07:14 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Breach of 11,460 on the downside could fuel further selling pressure

However, the confirmation would come if the index manages to close above 50-day exponential moving average (EMA) placed at 11,714, but on the other hand, a breach of 11,460 on the downside could fuel further selling pressure, suggest experts.

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Stable Tuesday after a manic Monday! It was indeed a day of consolidation on D-Street after D-Street suffered its worst day of 2019 on Monday. The index bounced back from the lows which suggest firepower of the bulls at lower levels.

The Nifty50 index bounced from its 100-days moving the average to reclaim 11500-11550 levels towards the close of the trade. The final tally on D-Street – the S&P BSE Sensex closed 10 points higher at 38,730 while the Nifty50 ended 2.7 points down at 11,555.

Close

Amongst the broader market indices, ‘BSE Midcap’ outperformed the benchmark and ended higher by 0.6%, while ‘BSE Smallcap’ ended marginally positive.

Amongst the sectoral indices, heavy selling was witnessed in consumer durables (down 6.8%) as Titan plunged 12.4% on account of muted Q1FY20 commentary.

On the other hand, Realty, Oil & Gas and Capital Goods recovered and gained in the range of 1.1-2.8% respectively.

The Budget might be over but the overhang of the Budget proposals are likely to stay with markets for some more time. Additionally, the market seems to be building in a weak quarterly performance from Indian Inc.

On the global front, on-going geopolitical issues between the US and Iran, crude oil prices and currency movement will induce volatility in the markets, suggest experts.

The rupee on Tuesday recovered by 15 paise to close at 68.51 against the greenback on fag-end selling of the US currency by banks and importers in line with late recovery in domestic equities.

On the institutional front, FPIs were net sellers in Indian markets for Rs 674 cr in Indian markets while DIIs were net buyers to the tune of Rs 710 cr, provisional data showed.

Big News:

As we kick-start earning season for June quarter with Tata Consultancy Services (TCS) results on Tuesday, let’s take a look at companies which have given double-digit returns post Q4 results from the period March 29th to June 30th.

The market seems to have rewarded those companies which have delivered positive quarter-on-quarter (QoQ) rise in Q4 at a time when overall earnings failed to enthuse markets, data from AceEquity showed.

The companies which have delivered double-digit returns in the S&P BSE 500 index since March quarter include names like DCM Shriram, HDFC AMC, SpiceJet, SBI Life Insurance, HDFC Life, Bajaj Finserv, Bajaj Finance, AU Small Finance, Shree Cements, and PNC Infratech, etc. among others.

Technical View:

Nifty formed a Hammer kind of pattern on the daily charts and a pullback looks possible

Nifty bounced back after retesting its crucial support placed at 100-day moving average at 11,501

However, the confirmation would come if the index manages to close above 50-day exponential moving average (EMA) placed at 11,714, but on the other hand, a breach of 11,460 on the downside could fuel further selling pressure, suggest experts.

Three levels: 11461, 11582, 11700

Max Call OI: 12000, 11900

Max Put OI: 11300, 11500

Stocks in news:

IT services provider Tata Consultancy Services has reported sequentially flat profit at Rs 8,131 crore for the quarter ended June 2019, beating analyst estimates largely due to other income which grew by 40 percent to Rs 1,675 crore.

Indian Overseas Bank (IOB) is planning to raise Rs 500 crore via the sale of Tier-II bonds, the Chennai-based state-run lender said in a statement on July 9. The bonds have been rated 'A+/Stable' by CRISIL Ratings.

Technical Recommendations:

We spoke to SMC Global Securities and here’s what they have to recommend:

Indraprastha Gas Ltd: Sell| Target: Rs 276| Stop Loss: Rs 310| Downside 7%

Sobha Ltd: Buy| Target: Rs 622| Stop Loss: Rs 520| Upside 11%

Majesco Ltd: Buy| Target: Rs 611| Stop Loss: Rs 510| Upside 12%

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.
First Published on Jul 10, 2019 07:14 am
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