Moneycontrol Be a Pro
Get App
Last Updated : Oct 11, 2019 07:19 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty can push towards 11,321 if it sustains above 11,208

If the index slips below 11208 levels for at least 30 minutes then intraday selling can resume with initial targets of 11130 kinds of levels.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

After a pleasant Wednesday, it looked like bears took control of D-Street and wiped out approx 50% of the gains made in the previous session. The Nifty Bank erases 70% of gains.

The final tally on D-Street -- the S&P BSE Sensex gave up 38000, as it fell 297 points to 37,880 while the Nifty50 closed 78 points lower at 11,234 on Thursday.

Close

The Nifty index slipped below its crucial support at 200-DMA at 11,266, but bounced back from its 200-days EMA.

Experts feel that market failed to hold gains at the start of the Q2 results. Banks underperformed due to concern over slippage and on-going crisis in the sector. The September quarter results are likely to be a repeat telecast of June quarter.

Markets will first react to TCS numbers on Friday and then focus would shift to the Infosys results. Besides, the trade talks between the US and China will also remain on the participants’ radar.

On the macro front, Moody’s Investors Service slashed its growth forecast for India for the fiscal year that began in April to 5.8% from 6.2% and said a weaker growth outlook will dampen the prospects for fiscal consolidation.

India Ratings and Research on Thursday pared India’s gross domestic product (GDP) forecast for 2019-20 to 6.1%, the second downgrade in two months. The agency had revised its GDP growth estimate to 6.7% from its earlier forecast of 7.3% in August.

Investors will watch out for IIP data for the month of August on Friday. It accelerated to 4.3% in July.

Top Sensex gainers: HCL Tech, RIL, and Bharti Airtel

Top Sensex losers: Tata Motors, YES Bank, and IndusInd Bank

Big News:

As many as 8 companies on the BSE will declare their results for the quarter ended September which include names like Infosys, Den Networks, Hathway and Bajaj Consumer Care etc. among others.

Infosys: PAT likely to fall by 3.5% YoY

(Estimates are from Motilal Oswal)

Technical View:

Nifty formed a small bearish candle on the daily charts

It closed below its long term moving average placed at 11,266 which is slightly negative for the bulls

Interestingly, Nifty bounced back after testing the 200-day exponential moving averages at 11,219 with an intraday low of 11208 levels.

What should investors do?

Experts feel that as long as Nifty sustains above 11208 levels it should stabilize and can resume its upmove with an initial target of 11321 and a strong close above the same can take it towards its critical resistance of 11400.

If the index slips below 11208 levels for at least 30 minutes then intraday selling can resume with initial targets of 11130 kinds of levels.

Three levels to watch: 11110, 11208, 11406

Max Call OI: 12000, 11500

Max Put OI: 11000, 11200

Stocks in news:

Tata Consultancy Services (TCS) on October 10 reported a 1 percent sequential decline in the September quarter profit at Rs 8,042 crore, missing expectations.

Technical Recommendations:

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

Indraprastha Gas: BUY| CMP: Rs 370| Target RS.397.50 |Stop Loss Rs.340|Return 7%

Hindustan Unilever: BUY| CMP: Rs.1979 | Target: Rs 2,120 |Stop Loss: Rs 1,849|Upside 7%

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.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Oct 11, 2019 07:16 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant