Moneycontrol
Last Updated : Nov 26, 2018 07:16 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty likely to remain weak with support placed at 10,315

Nifty formed a bearish candle after three bullish candles which is a sign of exhaustion. The expiry is likely to happen in the range of 10400-10700 levels.

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A volatile week for India markets. The Nifty50 failed to hold on to 10750, 10700 as well as its 200-DMA and fell by about 1 percent for the week ended 22 November.

Well, the current week is unlikely to remain clam for sure as well as F&O expiry for the month of November and big macro data i.e. GDP data for the September quarter which will be watched by investors.

There is plenty of macro data lined up on the international front as well. For instance, Japan will announce manufacturing PMI on November 26 along with US GDP for Q3 of 2018.

The US Federal Reserve’s minutes of the meeting will be out, a commentary eyed by traders to understand the trajectory that the central bank has adopted.

Action around state elections is in full swing and this week will see Madhya Pradesh and Mizoram going to polls on November 28.

Technically, Nifty formed a bearish candle after three bullish candles which is a sign of exhaustion. The expiry is likely to happen in the range of 10400-10700 levels.

Big News:

FPIs' bullish stance continues; inflow at Rs 6,310 crore in November so far, after pulling out massive funds in October, on easing crude oil prices and a strengthening rupee.

Of these, most of the funds were infused in the debt market by foreign portfolio investors (FPIs), the latest data with depositories showed.

The recent inflows come after a net outflow of more than Rs 38,900 crore in October, which was the steepest withdrawal in nearly two years.

FPIs pulled out over Rs 21,000 crore from capital markets (both equity and debt) in September. Before that, they had put in Rs 7,500 crore in July and August.

Experts suggest that appreciating rupee and fall in oil prices provided a leeway to India's macros and accordingly influenced FPIs to change their stance towards emerging markets.

Technical Charts:

Nifty formed a bearish candle and a Bearish Engulfing kind of pattern on the weekly candlestick charts.

The near term trend is down and there is a possibility of extension of this weakness for the next week.

Next important supports to be watched is at 10,315 levels for the next week

Three levels: 10315, 10440, 10700

Max Call OI: 10700, 11000

Max Put OI: 10000, 10500

Stocks in news:

Reconstitution of S&P BSE Sensex index: HCL Technologies, Bajaj Finance to replace Wipro, Adani Ports in the BSE Sensex effective December 24, 2018.

IL&FS: The company is unable to pay short-term deposit including interest worth Rs 218 crore due November 22.

Jet Airways: Ranjan Mathai quits Jet Airways board as independent director.

Technical Recommendations:

We spoke to 5nance.com and here’s what they have to recommend:

Kajaria Ceramics: Buy| Target: Rs. 473| Stop-Loss: Rs 426 | Upside: 5%

Adani Ports: Buy| Target: Rs 383| Stop Loss: Rs 351| Upside: 4%

Shriram Transport Finance: Sell | Target: Rs. 1120 | Stop-Loss: Rs. 1201 | Downside: 3%

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 Nov 26, 2018 07:16 am
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