Upcoming Webinar: Analyse the security landscape of digital payments at 11 am on October 20. Register now!
Last Updated : Sep 12, 2019 07:27 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street| Nifty likely to remain range-bound below 11,100; macro data eyed

Experts feel the narrow range raised a bit of concern over further uptrend on the index but if it trades above 11,050 in the coming session then there could be a further rally.

  • bselive
  • nselive
Todays L/H

A stable Wednesday for sure on D-Street where auto and realty stocks led the rally.


Sensex closed above 37,200 for the first time since September

The S&P BSE Sensex rallied more than 100 points while Nifty50 held on to 11000 levels; however, it failed to close above the resistance level of 11,042.

The final tally on D-Street -- the S&P BSE Sensex rose 125 points to close at 37,270 while the Nifty50 closed 32 points higher at 11,035.

In terms of sectors, the Realty index rose more than 4%, followed by the Auto index which was up 3.5%, and Metal index gained 2.4%. IT Index closed lower for the second consecutive day in a row as rupee records minor gains vs USD.The auto sector got a booster shot after media reports suggested that the finance minister Nirmala Sitharaman hinted at more steps to help the auto companies. The industry experts hope the government will take some actions on the auto industry's key demands: GST rate cut and scrappage policy, CNBC-TV18 said in a report.

For the real estate sector which is reeling under a slowdown, the government may make some announcement for the sector in the coming days, CNBC TV18 reported Minister of State (MoS), Finance & Corporate Affairs, Anurag Thakur as saying at an event on Wednesday.

Nearly 200 stocks hit a fresh 52-week low on the BSE which include names like Somany Ceramics, Simplex Infra, Omaxe, Shemaroo Entertainment etc. among others.

The broader markets outperformed as both BSE Midcap and Smallcap ended with healthy gains of 1% and 1.3% respectively.

Indian market is likely to trade in a range in the near-term as long as it is trading below 11,100.

Investors will track the macro data (CPI, IIP) on Thursday

Global factors such as US-China trade war development, Brexit, etc. will provide direction to the markets. Also, ECB meet scheduled will be eyed by market participants across the globe.

Extending the gains into the fifth consecutive session, the Indian rupee closed with a marginal gain of 4 paise at 71.66 on September 11.

On the institutional front, FPIs were net buyers in Indian markets for Rs 266 cr while the DIIs were also net buyers to the tune of Rs 1132 cr, provisional data showed.

Big News:

100 days of Modi government -- Investors were on the losing end -- they lost about 12 lakh cr in terms of m-cap on BSE

However, 12 stocks, including HDFC Asset Management Company, Zydus Wellness, HDFC Life Insurance, Adani Power and Apollo Hospitals Enterprise, defied the trend in the market, surging up to 50 percent.

However, during the same period, many stocks have also seen sharp declines.

Stocks such as HSIL, Coffee Day Enterprises, Jet Airways, Reliance Capital and Indiabulls Integrated Services have lost over 70 percent of their market value during the said period.

Foreign portfolio investors (FPIs) took off nearly Rs 29,000 crore from the Indian equity market during July and August 2019.

Data from Ace Equity shows that barring the IT sector, which rose about 7 percent, all sectoral indices experienced the heat of selloff.

Technical View:

Nifty formed a bullish candle which also resembles a spinning top or a Doji kind of pattern on the daily charts

Both the pattern resembles indecisiveness among the bulls as well as the bears

Experts feel the narrow range raised a bit of concern over further uptrend on the index but if it trades above 11,050 in the coming session then there could be a further rally.

Three levels: 11,011, 11054, 11100

Max Call OI: 11200, 11500

Max Put OI: 10800, 10600

Technical Recommendations:

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

Eicher Motors: Buy| LTP: Rs 17,013.65 | Target: Rs 18,540 |Stop Loss Rs.16,160| Upside 9%

Ujjivan Financial Services: Buy| LTP: Rs 315.60 | Target: Rs 336 |Stop Loss: Rs.302|Upside 6.50%

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 Sep 12, 2019 07:25 am