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Last Updated : Feb 14, 2019 07:19 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Focus on last leg of Q3 earnings, WPI data

As the index is heading for an oversold zone with a fall of almost 5 consecutive days some bounce back can’t be ruled out in next one or two trading sessions.

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Supportive global cues and better than expected inflation data acted as a tailwind for Indian markets but bears took control of D-Street in the last half an hour of trade and pushed the index below crucial support levels.

The S&P BSE Sensex saw a sharp drop of over 100 points after rallying of over 200 points and closed just a shade above 36,000 while Nifty50 slipped below its crucial level of 10,800 levels.

Positive global cues and on the domestic front, cool off seen in CPI inflation in January to 2.05% and pick-up in Industrial Production for December 2018 by 2.4% failed to create positive momentum in the market which suggests that the mood of the market is extremely negative at the moment.

Globally, most of the Asian & European indices traded on a positive note.

On the sectoral front, IT and Realty ended in green while selling pressure was witnessed among all the sectoral indices such as auto, consumer durables, capital goods, oil & gas and power were among the laggards which dropped in the range of 1.1-2.1%.

On the domestic front, investors would focus on the last leg of Q3FY19 earnings season and WPI data, suggest experts. On the global front, investors would keep an eye on the progress of trade talks between US-China, the behaviour of crude oil prices and fluctuation in currency.

Big News:

On the earnings front, nearly 1000 companies will declare their results for the quarter ended December which include names like Voltas, Vadilal Dairy, Unitech, Surya Roshni, Steel Strips, Page Industries, Nestle India, MMTC, La Opala, Kaveri Seeds, Kitex Garments, JMT auto, Infibeam Avenues, Cox & Kings, Ashok Leyland etc. among others.

Nestle India: PAT likely to grow by 8% YoY to Rs 459 crore

Page Industries: PAT likely to grow by 22% YoY to Rs 102 crore

Ashok :Leyland: PAT likely to grow by 26% YoY to Rs 2.3 crore

Technical View:

Nifty formed a strong bearish candle as it slid down in the last 40 minutes after moving in an extremely narrow range

This last hour breakdown may put some more pressure on Thursday which may drag down the said index toward its 100-day moving average placed around 10700 levels.

But, as the index is heading for an oversold zone with a fall of almost 5 consecutive days some bounce back can’t be ruled out in next one or two trading sessions.

Ideally, a close above 10900 can be considered as an initial sign of strength

Three levels: 10772, 10891, 10950-11000

Max Call OI: 11000, 11200

Max Put OI: 10400, 10700

Technical Recommendations:

We spoke to SMC Global Securities and here’s what they have to recommend:

HDFC Bank: Buy| LTP: Rs 2140| Target: Rs 2260| Stop Loss: Rs 2080| Upside 5%

Jubilant Foodworks: Buy| LTP: Rs 1276| Target: Rs 1415| Stop Loss: Rs 1220| Upside 11%

NMDC: Buy| LTP: Rs 93.40| Target: Rs 102| Stop Loss: Rs 90| Upside 9%

Disclaimer: The views and investment tips expressed by investment experts 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 Feb 14, 2019 07:17 am
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