Moneycontrol
Last Updated : Dec 07, 2018 07:39 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Expect sharp correction if Nifty slips below 10,500

Both Sensex and Nifty broke below crucial support levels which is a sign of worry for investors in the near-term.

Kshitij Anand @kshanand
 
 
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Indian markets cracked on Thursday tracking weak trend seen in other Asian markets. The S&P BSE Sensex plunged 572 points while Nifty50 lost 181 points to end at 10,601.

The total market capitalisation of BSE listed fell by Rs 2.28 lakh crore.

Traders also remained cautious ahead of five states elections exit poll due on Friday evening and result on December 11 as well as OPEC meeting.

Both Sensex and Nifty broke below crucial support levels which is a sign of worry for investors in the near-term.

If I look at the institutional activity, net buying of FPI was Rs 72 crore while on the other hand, DII net sell figure stood at Rs 389 crore on Thursday.

Global cues will be important for charting market direction in the near term along with state election outcome due next week. A defeat of BJP would signal uncertainty about the outcome of the general elections which are around the corner and markets hate uncertainty.

Also, the rupee depreciated by 44 paise to close at 70.90 against the US dollar on December 6 amid a strengthening greenback and a sharp decline in equity markets.

Big News:

OPEC agrees tentative oil cut, waits for Russia to commit

In other news, India has signed an agreement with Iran to pay for crude oil it imports from the Persian Gulf nation in rupees, PTI sources in know of the development said.

Under the 180-day exemption, India is allowed to import a maximum of 300,000 barrels a day of crude oil. This compares to an average daily import of about 560,000 barrels this year.

India, which is the second biggest purchaser of Iranian oil after China, has since then restricted its monthly purchase to 1.25 million tonne or 15 million tonne in a year (300,000 barrels per day), down from 22.6 million tonne (452,000 barrels per day) bought in a 2017-18 financial year, sources said.

Technical View:

Nifty formed a bearish candle on the daily charts

The index decisively breached its 200 DEMA and formed a bearish candle on daily charts.

If the index breaks 10,500 then the correction could be sharp in coming sessions, experts said, adding the states elections results due on December 11 would be closely watched by the Street.

Three levels: 10500, 10588, 10747

Max Call OI: 11000, 10900

Max Put OI: 10000, 10200

Technical Recommendations:

We spoke to Ways2Wealth Brokers Pvt Ltd. and here’s what they have to recommend:

PVR: Buy above 1531| LTP: Rs 1489| Target 1700| Stop Loss: Rs 1428| Return 14%

Voltas: Sell around 537| LTP: Rs 538| Target 480| Stop Loss: Rs 570| Return 11%

RIL: Sell around Rs 1,130 - 1,140| LTP: Rs 1123| Target: Rs 1050 - 1016| Stop Loss: Rs 1187| Return 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 Dec 7, 2018 07:12 am
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