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Last Updated : May 14, 2019 06:54 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Close above 11,228 can be considered as initial sign of strength

For time being upsides shall get capped around 11,300 whereas a close above 11,228 can be considered as the initial sign of strength which can then lead to sideways consolidation.

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A black Monday on D-Street! The index posted its longest losing streak for the first time in the last 8 years. The index closed in red for the 9th consecutive day in a row.

The index broke below its crucial 100-days exponential moving average (EMA) placed at 11,253 to form a bearish candle. The next support could now be placed at its 200-days EMA placed around 11,035.

In terms of sectors, the Nifty PSU Bank lost 5 percent, followed by Nifty Pharma which lost 4.3 percent, and the Nifty Media was down by 3.7 percent.

The broader market underperformed the benchmark index. The Nifty Midcap index was down 2.69 percent while the Nifty Midcap index dropped 2.1 percent.

More than 200 companies on the NSE and over 300 companies on the BSE hit fresh 52-week low which includes names like Eicher Motors, M&M, Biocon, Sun Pharma, Wockhardt, Dabur India, Cadila Healthcare, etc. among others.

On the macro front, India's retail inflation stood at 2.92 percent in April, higher than 2.86 percent in March. It was well within the target of the Reserve Bank of India (RBI).

The CPI data is in-line with the RBI’s expectation of 2.8% hence we can expect more 25 bps rate cut in the next monetary policy to infuse liquidity in the system which is the need of an hour, suggest experts.

Investors will watch out for WPI inflation data which will be out later on Tuesday.

The rupee on Monday fell sharply by 59 paise to close at nearly two-and-a-half-month-low of 70.51 against the US dollar.

On the provisional front, FPIs were net sellers in Indian markets for Rs 1056 crore while the DIIs were net buyers to the tune of Rs 1057 crore, provisional data showed.

Big News:

As many as 60 companies will declare their results for the quarter ended March which include names like HOEC, Indian Bank, Nestle India, Pidilite Industries, PTC India, Siemens, UCO Bank, Union Bank of India, Welspun Corp etc. among others.

Nestle India: PAT likely to grow by 4% YoY to Rs 457 crore

Pidilite Industries: PAT likely to fall by 6% YoY to Rs 232 crore

Siemens: PAT likely to grow by 29% YoY to Rs 255 crore

(All estimates are from Motilal Oswal)

Technical View:

Nifty forms a bearish candle for the 9th day in a row

The index broke below its crucial 100-day exponential moving average (EMA) placed at 11,253 to form a bearish candle. The next support could now be placed at its 200-day EMA placed around 11,035.

For the time being upsides shall get capped around 11,300 whereas a close above 11,228 can be considered as the initial sign of strength which can then lead to sideways consolidation

Three levels: 11035, 11125, 11300

Max Call OI: 12000, 11800

Max Put OI: 11000, 10500

Stocks in news:

After making losses for seven consecutive quarters, city-based United Bank of India (UBI) registered a net profit of Rs 95.18 crore in the last quarter of 2018-19, a bank statement said on May 13.

India's largest telecom operator Vodafone Idea Ltd May 13 posted consolidated loss of Rs 4,881.9 crore for the fourth quarter ended March 31, amid a brutal tariff war in India's mobile market.

Karnataka Bank May 13 posted close to a six-fold jump in net profit at Rs 61.73 crore during March quarter 2019. The bank clocked a profit of Rs 11 crore during January-March period of 2017-18.

Technical Recommendations:

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

Engineers India: Sell| LTP: Rs 103.75| Target: Rs 95| Stop-Loss: Rs 109 | Downside 8.5%

Tata Elxsi: Sell| LTP: Rs 845| Target: Rs 800| Stop-Loss: Rs 875 | Downside 5%

Godrej Industries: Sell| LTP: Rs 452| Target: Rs 425 | Stop-Loss: Rs 470 | Downside 6%

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 May 14, 2019 06:54 am
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