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Last Updated : May 15, 2019 06:48 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | For bulls to take charge, Nifty must close above 11,300

The index needs to reclaim 11,250-11,300 on closing basis for bulls to take charge else the selling pressure could continue, experts said.

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Nifty snapped 9-day losing streak on May 14 and reclaimed 11,200. However, for bulls to regain control, the index has to close above 11,250-11,300 convincingly else selling pressure could continue.

The final tally – the S&P BSE Sensex rose 227 points to 37,318 while the Nifty closed 73 points higher at 11,222.

On the sectoral front, the BSE Telecom index rose 2.8 percent, followed by the BSE Energy index (up 1.6 percent), and BSE Capital Goods index (up 1.4 percent). On the losing front, IT stocks came under pressure.

The rally was largely on the back of short-covering and investors should not confuse the move with strength in the index. Every bounceback will be used to book profits, experts said.

In Tuesday’s session, the Nifty staged a bounceback from 11,100 levels to reclaim 11,200 levels but found resistance around its five-day Exponential Moving Average (EMA).

The rupee May 14 recovered 7 paise to close at 70.44 to the US dollar on the back of gains in equity markets while US-China trade-related concerns and rising crude oil prices continued to weigh on investor sentiment.

On the institutional front, FPIs were net sellers in Indian markets for Rs 2011 crore while the DIIs were net buyers to the tune of Rs 2242 crore, provisional data showed.

Big News:

As many as 84 companies will declare their results for quarter ended March which include names like Adani Power, Aditya Birla Fashion, Ajmera Realty, Amara Raja Batteries, Dalmia Bharat, Deep Industries, Lupin, Seamec, Suven Life Sciences, Torrent Power etc. among others.

Lupin: PAT likely to grow by 19% YoY to Rs 446 crore

Amara Raja Batteries: PAT likely to grow by 13% YoY to Rs 124 crore

Torrent Power: PAT likely to fall by 16% YoY to Rs 180 crore

(All estimates are from Motilal Oswal)

Technical View:

Nifty formed a bullish candle after 9-days of consecutive fall

The index staged a bounceback from 11,100 to reclaim 11200 but found resistance around its 5-day exponential moving average (EMA).

The index needs to reclaim 11,250-11,300 on closing basis for bulls to take charge else the selling pressure could continue, suggest experts.

Three levels: 11108, 11300, 11500

Max Call OI: 12000, 12500

Max Put OI: 11000, 11500

Stocks in news:

State-owned Union Bank of India on May 14 said its net loss widened to Rs 3,370 crore in the fourth quarter of 2018-19, mainly on account of higher provisioning.

FMCG major Nestle India May 14 reported a 9.25 percent rise in profit to Rs 463.28 crore for the first quarter ended March 31, 2019.

State-owned UCO Bank May 14 said its net loss has narrowed to Rs 1,552.02 crore in March 2019 quarter, amid a persistent high level of bad loan ratio.

The chief executive and head of finance at Jet Airways have both quit, the Indian company said on Tuesday, further eroding hopes of a rescue of the debt-laden carrier that grounded operations last month.

Technical Recommendations:

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

Bajaj Auto: Sell| Target: Rs 2805| Stop Loss: Rs 3040| Downside 5%

DCB Bank: Buy| Target: Rs 239| Stop Loss: Rs 202| Upside 11%

Titan Company: Buy| Target: Rs 1245| Stop Loss: Rs 1100| Upside 8%

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 May 15, 2019 06:48 am
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