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Last Updated : Jun 10, 2019 08:33 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Breach of 11,769 levels will take Nifty towards 11,600

Doji also indicates indecisiveness which means the market needs a trigger to move on either side, experts said, adding the index has to strongly surpass 12,000 to move above earlier record high levels.

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It has been a volatile truncated week for India markets as Nifty50, which had jumped to a record high of 12,103.05 on June 3, failed to even hold on to 11,900 levels towards the close of the week.

Benchmark indices closed with minor gains. But, for the week that ended on June 7, both Sensex and Nifty snapped their three-week winning streak and closed with losses of 0.25 percent and 0.44 percent respectively.

Close

The broader market underperformed benchmark indices by a wide margin for the week that ended on June 7. The S&P BSE Midcap index slipped 1.26 percent, and the S&P BSE Smallcap index was down 1.4 percent in the same period.

As many as 20 stocks in the S&P BSE 500 index fell 10-30 percent in just four trading sessions, which include names like Reliance Communications, Radico Khaitan, Edelweiss Financial Services, Kwality, Jaiprakash Associates, Jet Airways, Reliance Power, Manpasand Beverages, Reliance Infra, and Eros International Media.

The rupee on Friday fell by 18 paise to close at 69.46 against the US currency on the strengthening of the greenback in overseas markets and rising crude oil prices.

On the provisional front, FPIs were net sellers in Indian markets for Rs 478 crore while DIIs were net buyers to the tune of Rs 179 crore, provisional data showed.

Big News:

RBI revises NPA norms, gives banks 30 days to review stressed loans

RBI on June 7 issued a revised circular on the resolution of stressed assets. RBI has said that lenders must resolve non-performing assets (NPA) over Rs 2,000 crore within 180 days.

The central bank has said that a lender should initiate a resolution plan before the loan default.

Experts suggest that this is indeed a welcome step since there was a lag between the default and then having a resolution to it. Earlier it was mandated to identify it on Day 1 which was actually a losing situation for the borrower. This was actually creating a stressful situation for the lender and the borrower.

This new 30-day window will now actually put a cushion for the borrower.

Secondly, the powers that have been now given to lender brings a lot of clarity on the table.

Technical View:

Nifty forms a Spinning top kind of pattern on weekly charts

The index closed above 11,850 and formed 'Doji Cross' kind of pattern on the daily scale

Doji also indicates indecisiveness which means the market needs a trigger to move on either side, experts said, adding the index has to strongly surpass 12,000 to move above earlier record high levels.

On the downsides, breach of 11,769 shall once again make the bulls vulnerable with a downside target of 11,600 whereas any recovery attempt shall perish in the zone of 11,930-11,970 levels where fresh shorts can be considered with a stop above 12,000 levels on a closing basis, suggest experts.

Three levels: 11769, 11897, 12103

Max Call OI: 12500, 12000

Max Put OI: 11500, 11000

Stocks in news:

After linking its short-term loans and large savings deposits rates to the repo rate, the largest lender State Bank on Friday said it will introduce repo-linked home loans from July.

The Reserve Bank of India (RBI) has, by an order dated June 06, 2019, imposed a monetary penalty of Rs 2 crore on Kotak Mahindra Bank for non-compliance of directions, a statement from the Central Bank said.

A day after the RBI cut the key repo rate, public sector Bank of Maharashtra Friday announced to cut the benchmark one-year MCLR by 0.10 percent to 8.60 percent.

We spoke to 5nance.com and here’s what they have to recommend:

Power Finance Corporation: Buy| LTP: Rs 134| Target: Rs 140 | Stop Loss: Rs. 125 | Upside 4%

Coal India: Buy| LTP: Rs 265| Target: Rs. 280 | Stop Loss: Rs. 255 | Upside 6%

Aurobindo Pharma: Sell| LTP: Rs 619.80| Target: Rs 605| Stop Loss: Rs. 645|Downside 2%

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.

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First Published on Jun 10, 2019 07:05 am
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