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Last Updated : Jan 01, 2019 07:05 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Low volumes likely, but watch out for auto sales data, macro numbers

As we step into the New Year, analysts expect low volumes during the week, as worldwide financial markets will remain closed on Tuesday on account of a New Year day.

Kshitij Anand @kshanand
 
 
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Good morning listener, it was the final trading day of the year 2018 and we saw a slight bit of profit booking at higher levels. But, we closed the year on a relatively stable note.

The S&P BSE Sensex rose nearly 6% while the Nifty50 rallied a little over 3% in the year 2018. However, the big carnage was seen in the broader market. The S&P BSE Mid-cap index fell by 13% while the S&P BSE Small-cap index was down by 24% in the year 2018.

As we step into the New Year, analysts expect low volumes during the week, as worldwide financial markets will remain closed on Tuesday on account of a New Year day.

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Investors will also closely track December auto sales data to be released on Tuesday, macro data like Manufacturing PMI & services PMI during this week, as well as Q3FY19 earnings which will kick-start from next week.

Right, there is plenty of action on the domestic front. But, let’s not ignore technicals. Nifty formed a Bearish candle on Monday and as long as index holds above 10850, bulls have nothing to fear. Next resistance is placed at 10,985-10925.

The Indian rupee strengthened marginally against the US dollar on Monday but recorded its worst performance among Asian peers in eight years. So far this year, the rupee was down by nearly 9 percent and remained Asia’s worst performing currency.

On the institutional front, FPIs pulled out net Rs 326 crore from Indian markets while DIIs were bet buyers to the tune of Rs 321 crore, according to provisional data.

Big News:

The BSE Sensex rallied 6 percent and the Nifty50 gained more than 3 percent after hitting life highs in January and August, in addition to around 28 percent surge in 2017.

The BSE Midcap index plunged 13 percent and Smallcap crashed 23.5 percent after 48 percent and 59 percent upside seen in a previous year.

Sectorally, Nifty IT index was up 23%, followed by FMCG index which was up 13% and the Nifty Bank gained 6%. In terms of losers, Nifty Realty was down 33%, followed by an Auto index which plunged 23% and the Metal index was down by 20%.

Technical View:

Nifty formed a bearish candle on the daily charts

The Nifty is expected to remain positive and may make an attempt to move towards psychological 11,000 levels till it holds 10,850, experts said.

Three levels: 10800, 10853, 10923

Max Call OI: 11200, 11000

Max Put OI: 10500, 10000

Technical Recommendations:

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

Tech Mahindra Ltd: Buy| LTP: 723| Target: Rs 780 | Stop-Loss: Rs 690| Return 8%

Kalpataru Power: Buy| LTP: 392| Target: Rs 430| Stop-Loss: Rs 370| Return 10%

BHEL: Buy| LTP: 73| Target: Rs 82| Stop-Loss: Rs 69| Return 12%

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 1, 2019 07:03 am
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