Moneycontrol
Get App
Last Updated : Jun 11, 2019 07:08 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Create short positions on breach of 11,840 on a closing basis

Traders can look to create short positions either on breach of 11,840 on a closing basis or on a pullback in the zone of 11,950–970 with a stop above 12,039, suggest experts.

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

A volatile Monday on D-Street but the good news is that bulls managed to push the index back above 11900 on the Nifty

Global stocks rallied after the United States shelved plans to impose tariffs on Mexico. This also led to a smart gap-up opening on Indian markets. Additionally, the tweaks in NPA norms by the Reserve Bank of India aided positive sentiment.

Close

In terms of sectors, the S&P BSE IT index rose 1.78 percent, followed by the S&P BSE FMCG index which was up 1.1 percent, and the S&P BSE Capital Goods index closed 0.74 percent higher.

Broader markets underperformed benchmark indices. The S&P BSE Smallcap index fell 0.49 percent while the S&P BSE Midcap index rose 0.1 percent.

More than 200 stocks on the BSE hit their 52-week low on the BSE including Quess Corp, ENIL, Hindustan Zinc, Yes Bank, Jet Airways, Reliance Capital, Cox & Kings, MRPL, Aban Offshore, etc.

Some good news -- a Crisil report highlighted that the system-wide non-performing assets stock has declined massively to 9.3 percent in March 2019, much faster than the Reserve Bank's estimate and steeply down from 11.5 percent the year before.

"System-wide NPAs have declined in fiscal 2019 to 9.3 percent as of March 2019 after tripling to 11.5 percent in the four fiscals till March 2018," it said in a note Monday.

The rupee surrendered all its early gains and closed 19 paise lower at 69.65 against the US dollar on June 10 amid strengthening of the greenback against Asian currencies and rising crude oil prices.

On the institutional front, FPIs were net buyers in Indian markets for Rs 216 cr while the DIIs were also net buyers to the tune of Rs 170 cr, provisional data showed.

Big News:

The recent MF data suggested that the Assets under management (AUM) of the mutual fund industry stood at Rs 25.43 lakh crore at May-end, up 5 percent month-on-month (MoM), data from Association of Mutual Funds in India (AMFI) showed.

While flow in liquid funds were stable, outflows in credit risk funds increased significantly to Rs 4,156 crore as against Rs 1,253 crore in April.

Credit-risk funds are debt funds that have at least 65 percent investments in less than AA-rated paper.

Inflows into equity funds, including ELSS, improved slightly to Rs 4,969 crore in May, from Rs 4,229 crore in April.

Open-ended equity schemes saw inflows of Rs 5,408 crore, which were slightly offset by outflows of Rs 439 crore in close-ended equity plans.

Technical View:

Nifty formed a ‘Doji’ pattern for second day in a row

Most experts feel that the index is moving in a narrow range and awaiting a breakout or a breakdown before traders could initiate the next course of action.

The crucial level on the downside to watch is 11,871 while on the upside 12,103 will continue to be a crucial hurdle.

Traders can look to create short positions either on breach of 11,840 on a closing basis or on a pullback in the zone of 11,950–970 with a stop above 12,039, suggest experts.

Three levels: 11,871, 11,975, 12103

Max Call OI: 12500, 12000

Max Put OI: 11500, 11000

Stocks in news:

Ajai Kumar, a non-executive director of Yes Bank who served as the bank's interim MD and CEO for one month after Rana Kapoor's exit, has resigned from the board due to personal reasons, the lender said on June 10.

UltraTech Cement has got environment ministry's nod for a Rs 2,500 crore project in Andhra Pradesh, as per an official document.

Pharmaceutical major Cipla has on June 10 received the establishment inspection report (EIR) from the USFDA for its Kurkumbh manufacturing site in Maharashtra.

Technical Recommendations:

We spoke to Religare Broking and here’s what they have to recommend:

Tata Steel: Sell Jun Futures| Target: Rs 465| Stop-Loss: Rs 504| Downside 5.5%

Bata India: Buy| Target: Rs 1500| Stop-Loss: Rs 1375| Upside 6%

Apollo Hospitals Enterprises: Buy| Target: Rs 1480| Stop-Loss: Rs 1330| Upside 7.2%

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.

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 Jun 11, 2019 07:08 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant