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Last Updated : Jan 17, 2019 07:06 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Expect consolidation in near term with stiff resistance at 11,100

The broader set up of the Nifty remains positive with some consolidation expected in the near term. 11000 is likely to act as big hurdle for the index.

 
 
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A lackluster day for Indian markets. Rupee depreciation, higher crude oil prices and uncertainty on the Brexit front possibly weighed on the sentiments and capped the upside for Indian markets.

Both Sensex and Nifty closed flat but it was largely on expected lines because Nifty was already trading near key resistance levels.

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Going forward, the broader set up of the Nifty remains positive with some consolidation expected in the near term. 11000 is likely to act as big hurdle for the index.

With softer retail and wholesale price-based inflation, RBI is likely to change its policy stance to ‘neutral’ from ‘calibrated tightening’ in the February policy, according to a report from Kotak research.

The inflation based on the Consumer Price Index (CPI) eased to an 18-month low of 2.19 percent in December compared to 2.33 percent in November and 5.21 percent in December 2017. This is the fifth consecutive month that the CPI reading has been below the RBI’s target of 4 percent.

The rupee weakened further by 19 paise Wednesday to close at 71.24 against the US dollar amid a strengthening greenback and fresh capital outflows.

On the institutional front, FPIs were net sellers in India market for Rs 90 crore while DIIs were net buyers to the tune of Rs 304 crore, according to provisional data.

Big News:

On the earnings front, as many as 19 companies on the BSE will declare their results for the quarter ended December which include names like AU Small Finance, Cyient, Federal Bank, HUL, Rallis India, Reliance Industries, and Mastek etc. among others.

Reliance Industries: Expected to report flat Q3 with net profit at Rs 9538 crore

Most analysts expect gross refining margins (GRMs) at around $8-9 a barrel in Q3 compared to $9.5 a barrel in the previous quarter and $11.6 a barrel in the year-ago period.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Hindustan Unilever: PAT is likely grow by 19% YoY to Rs 1410 crore

AU Small Finance: PAT likely to grow by 32% YoY to Rs 104 crore

Technical Recommendations:

Nifty formed a Doji kind of candle on daily charts

Three levels: 10876, 10928, 11000

Max Call OI: 11000, 11200

Max Put OI: 10500, 10700

Stocks in news:

SBI plans to sell over Rs 15,000 crore worth bad loans belonging to Essar Steel to recover its dues from the debt-laden steel maker.

Mid-sized IT firm Mindtree on Wednesday posted 35.1 percent rise in consolidated net profit at Rs 191.2 crore for the December 2018 quarter as against the year-ago period.

Phillips Carbon Black (PCBL) on Wednesday reported a 92 percent on-year jump in net profit to Rs 108.58 crore in the December quarter, riding on higher realisations from specialised and value-added products.

Technical Recommendations:

We spoke to Bonanza Portfolio and here’s what they have to recommend:

Lupin: Buy| LTP: Rs.863.20 | Target Rs 928| Stop Loss: Rs 837| Return 7.50%

Hindalco Industries Ltd: Buy| LTP: Rs 208.40 | Target: Rs 228| Stop Loss Rs.199| Return 9%

Dr Lal Pathlabs: Buy| LTP: Rs 1021.35 | Target: Rs 1080-1100| Stop Loss: Rs.978| Return 7%

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 Jan 17, 2019 07:06 am
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