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Last Updated : Oct 31, 2018 07:12 AM IST | Source:

A morning walk down Dalal Street | Critical support at 10,100; investors should be selective in stock picking

Experts advise investors to be selective in their stock picking. Supports are placed at 10,138 and 10080 while resistance is placed at 10,285-10,400.

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After a big rally of over 700 points on the Sensex, it looked like a day of consolidation for D-Street. The S&P BSE Sensex slipped below 34K while Nifty50 also failed to hold on to 10,200 levels.

The S&P BSE Sensex closed 176 points down at 33,891 while the Nifty50 dropped 52 points to close at 10,198.

Sectorally, IT, capital goods, realty and consumer durable stocks rallied while energy, oil & gas, metals, and banking stocks saw some bit of selling pressure.


The markets seem to be surrounded by a host of negative issues such as global trade tensions, rising oil prices and a falling rupee to name a few.

Earnings from India Inc. is not rosy but stable. The profitability growth at 7.9 percent year on year was a tad lower than Q1FY19 growth of 8.4 percent but was better than 3.4 percent that was reported in Q2 FY18, said a Moneycontrol Research report.

Experts advise investors to be selective in their stock picking. UBS in a report on Monday puts a Nifty target of 10,500 by December 2018. It remains overweight on IT as well as private banks. But, at the same time stays underweight on wholesale funded banks as well as small and mid-caps.

Technically, supports are placed at 10,138 and 10080 while resistance is placed at 10,285-10,400.

Big News:

On the earnings front as many as 156 companies will be reporting their results for quarter ended September later today which include names like Adani Enterprises, Adani Power, Canara Bank, Castrol India, Dabur India, Escorts, Lupin, L&T, MOIL, Repro India, Sanofi India, Strides Pharma, Syndicate Bank, Tata Motors, Vedanta, United Spirits etc. among others.

Tata Motors: Company is likely to report a net loss of Rs 457 crore

Lupin: PAT likely to fall by 44 percent YoY to Rs 251 crore

Dabur India: PAT likely to grow by 6.4 percent YoY to Rs 385 crore

Technical View:

Nifty forms a bearish candle on daily charts

Nifty50 needs to clear and sustains above 10,290 levels to pickup momentum once again.

The next target of 10,450 can be expected whereas on the downsides critical support appears to be placed around 10,100 levels.

Three levels: 10,000, 10285, 10400

Max Call OI: 11000, 10500

Max Put OI: 10000, 10200

Stocks in news:

Staffing firm TeamLease Services reported a 43.1 percent increase in its consolidated net profit to Rs 24.9 crore for the second quarter ended September 30.

Net profit of Birla Corporation, the flagship company of MP Birla group, increased manifold at Rs 16.29 crore for the September quarter of current fiscal from Rs 1.46 crore in the previous quarter of the previous fiscal.

BASF India reported 94.58 percent decline in standalone net profit at Rs 9.38 crore in the quarter ended September, against a profit of Rs 172.91 crore in the year-ago period.

Technical Recommendations:

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

Exide Industries: Buy | Close: Rs 261.45 | Target: Rs 290 | Stop Loss: Rs 240 | Return: 10.92%

Aurobindo Pharma: Buy| Close: 770.50 | Target: Rs 850 | Stop loss: Rs 720 | Return: 10.32%

Bharat Forge: Buy| Close: 569.50 | Target: Rs 610 | Stop loss: Rs 540 | Return: 7.11%

Disclaimer: The views and investment tips expressed by investment expert on are his own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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First Published on Oct 31, 2018 07:12 am
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