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Last Updated : Aug 07, 2019 07:37 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Buy on dips as long as Nifty sustains above 10,782

As long as Nifty sustains above 10,782 one can retain bullish bias and look to buy the dips, suggest experts.

 
 
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It was a stable Tuesday. Indian markets saw a rebound on expectations of a rate cut by the RBI but trade war woes capped gains.

The S&P BSE Sensex, which was up 540 points, failed to hold on to gains and closed below 37,000.

Close

The Nifty50 also failed to hold onto 11,000 levels as concerns over the US-China trade war, currency woes, and outflows from foreign investors’ capped gains.

The final tally on D-Street: the S&P BSE Sensex rose 277 points to 36,976, while the Nifty50 closed 85 points higher at 10,948 on August 6.

The broader markets outperformed the benchmark, with BSE Midcap and BSE Smallcap ending with gains of 1.4 percent and 1.7 percent, respectively.

The Indian rupee extended losses for a fourth session on Tuesday, dropping 8 paise to 70.81 against the US dollar ahead of the RBI's monetary policy decision.

On the institutional front, FPIs were net sellers in Indian markets for Rs 2107 cr while DIIs were net buyer to the tune of Rs 2289 cr, provisional data showed.

Big News:

As many as 146 stocks will report their results for the quarter ended June which incluide names like Adani Power, Aurobindo Pharma, Cipla, Cummins India, Gravita India, HCL Technologies, India Cements, KEC International, Lupin, M&M, OFSS, Petronet LNG, PTC India, Siemens, Tata Steel, Voltas etc. among others.

HCL Technologies: PAT likely to grow 0.8% YoY

Mahindra & Mahindra: PAT likely to fall by 20% YoY

Cipla: PAT likely to grow by 45% YoY

(All the estimates are from Motilal Oswal)

Technical View:

The index formed a bullish candle pattern on the daily charts

India VIX fell 2.77 percent to 16.12, but higher volatility suggests a bear dominance and pessimism in the market.

As long as Nifty sustains above 10,782 one can retain bullish bias and look to buy the dips, suggest experts.

In case pullback rally materialises then initial target shall be around 11,150 where 200-day simple moving average is placed.

Three levels: 10782, 10813, 11150-11160

Max Call OI: 11000, 11500

Max Put OI: 11000, 10500

Stocks in news:

Aditya Birla Fashion and Retail Ltd on August 6 reported over threefold jump in its net profit to Rs 21.56 crore for the first quarter ended June 30.

Indiabulls Housing Finance on Tuesday reported a net profit of Rs. 801.53 crore for the April-June period, marking a fall of 24 per cent over the corresponding period a year ago.

Ahead of the RBI policy, largest private sector lender HDFC Bank Tuesday has cut its lending rates by 0.10 percent across all tenors, effective Wednesday, PTI said quoting sources.

Technical Recommendations:

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

HDFC Bank Ltd: Buy| Target: Rs 2340| Stop-Loss: Rs 2200| Upside 4.2%

Hindalco Industries Ltd: Sell Futures| Target: Rs 180| Stop-Loss: Rs 200| Downside 6.7%

Vedanta Ltd: Sell Futures| Target: Rs 145| Stop-Loss: Rs 165| Downside 8.2%

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 Aug 7, 2019 07:22 am
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