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Last Updated : Feb 22, 2019 07:32 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | For bulls to regain control, Nifty has to hold above 10,900 levels

The index is comfortable trading above 100-day moving average as well as 5, and 13-DEMA on the daily charts which is a positive sign for the bulls, but for bulls to regain control, the index has to hold above 10,900 levels, suggest experts.

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Bulls remained in control of D-Street for the second consecutive day in a row on Thursday after falling for eight consecutive sessions. It formed a bull candle on the daily charts.

The index is comfortable trading above its 100-days moving average as well as 5, and 13-days exponential moving average (EMA) on the daily charts which is a positive sign. But, for bulls to regain control, the index has to hold above 10,900 levels, suggest experts.

On the other hand, if somebody plans to play the momentum then trading with strict stop losses is a better bet for capital preservation. A trailing stop loss below around 10640-10585 should be kept for all long positions.

Market extended gains for 2nd day in a row owing government’s announcement on recapitalization of PSU banks and globally minutes of US Feds suggested that the central bank will be patient in raising rates in 2019 added to sentiment.

On the global front, any news regarding trade talks will be watched out for.

The rupee skidded by 11 paise to close at 71.24 against the US dollar Thursday as rising oil prices and a strengthening greenback weighed on the market sentiment.

On the institutional front, FPIs and DIIs were net buyers to the tune of Rs 55 crore, and Rs 202 crore respectively, according to provisional data.

Big News:

Some good news…the Board of retirement fund body Employees’ Provident Fund Organisation (EPFO) has recommended an interest rate of 8.65 percent for FY19, 10 basis points higher than FY18, to its six crore subscribers.

This is the first time since FY16 that the interest rate has been raised.

The EPFO had provided a five-year low rate of interest of 8.55 percent to its subscribers for 2017-18.

The body had kept the interest rate at 8.65 percent in 2016-17 and 8.8 percent in 2015-16. It provided 8.75 percent interest for 2013-14 as well as 2014-15. The rate of interest was 8.5 percent in 2012-13.

Technical Recommendations:

Bulls remained in control of D-Street for the second consecutive day in a row on Thursday after falling for eight consecutive days in a row and formed a bull candle on the daily charts.

The index is comfortable trading above 100-day moving average as well as 5, and 13-DEMA on the daily charts which is a positive sign for the bulls, but for bulls to regain control, the index has to hold above 10,900 levels, suggest experts.

But, it somebody plans to go long on the index then trading with strict stop losses is a better bet for capital preservation. A trailing stop loss below 10,580-10640 should be kept for all long positions, they say.

Three levels: 10721, 10808, 10900

Max Call OI: 11000, 10900

Max Put OI: 10700, 10800

Stocks in news:

The government has asked state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) to sell out 66 of their small oil and gas fields to private firms as it brought in a new policy to boost domestic production and cut imports, Petroleum Minister Dharmendra Pradhan said on Thursday.

Drug major Dr Reddy's Laboratories is recalling 2,770 bags (277 selling units) of epilepsy drug Levetiracetam Sodium Chloride injection in the US market, on account of a labelling error.

NIIT Technologies has extended its partnership with Microsoft Azure to accelerate its cloud lead transformation on February 21.

Technical Recommendations:

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

Jindal Steel & Power: Buy| Target: Rs 166| Stop Loss: Rs 149.5| Upside 7%

Muthoot Finance: Buy| Target: Rs 580| Stop Loss: Rs 513| Upside 8.5%

Bajaj Finance: Buy| Target: Rs 2800| Stop Loss: Rs 2582.5| Upside 5.5%

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 Feb 22, 2019 07:16 am
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