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Last Updated : Aug 16, 2019 07:45 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty likely to stay rangebound unless 11,145–10,901 is broken on either side

A close above 11,078-level should suggest some strength in the index, whereas a close above 11,145 would accelerate upward momentum.

Moneycontrol News @moneycontrolcom

Indian market inched higher on the back of short-covering bounce on Wednesday supported by strong global cues. Global markets rose higher after the US delayed tariffs on some Chinese imports.

Back home, ease in inflation data for July also helped sentiment. The Nifty is back above 11,000 while the S&P BSE Sensex reclaimed 37,000 levels.

Close

Barring healthcare index on BSE, all the other sectoral indices ended in the green with metal, bank, capital goods and oil & gas indices rising up to 3 percent.

Metal stocks logged healthy gains, buoyed by positive development on the US-China trade war. BSE Metal pack closed 2.68 percent up with shares of Jindal Steel (up 9.55 percent), Vedanta (up 4.87 percent) and Tata Steel (4.61 percent) as the top gainers.

Rebounding from six-month lows, the rupee advanced 13 paise to close at 71.27 against the US dollar on August 14 amid easing oil prices and gains in the domestic equity market.

On the institutional front, FPI were net buyers in Indian markets for Rs 1,614 cr while DIIs were also net buyers to the tune of Rs 1,619 cr, provisional data showed.

Big News:

India's trade deficit in July narrowed to $13.43 billion from $18.63 billion a year ago, the trade ministry said in a statement on August 14, helped by lower oil import bill.

Oil imports dived 22.15% to $9.60 billion in July from $12.33 billion in a year-ago period.

Technical View:

Nifty forms a bullish harami pattern on the daily charts

A bullish harami pattern is formed at the bottom of a downtrend or near a significant support zone.

The sharp volatility (up and down) indicated that the market could remain rangebound in coming sessions unless index breaks the range of 11,145–10,901 on either side, experts say.

A close above 11,078-level should suggest some strength in the index, whereas a close above 11,145 would accelerate upward momentum.

Three levels: 10,935 (intraday low of Wednesday), 11,078 (intraday high of Wednesday), 11,170 (200-DMA)

Max Call OI: 11,000, 11,500

Max Put OI: 11,000, 10,700

Stocks in news:

State-owned mining and metals firm MMTC on August 14 reported doubling of its consolidated net profit to Rs 27.69 crore in April-June quarter on the back of an increase in revenue from fertiliser and precious metals segments.

Realty firm Omaxe Ltd on Wednesday reported an 83 percent rise in consolidated net profit at Rs 16.22 crore for the first quarter ended June 30, 2019, on a sharp jump in sales.

Yes Bank August 14 closed the qualified institutional placement (QIP) totalling Rs 1,930.4 crore at an issue price of Rs 83.55 per share (including a share premium of Rs 81.55 per share).

Technical Recommendations:

We spoke to Sanctum Wealth Management and here’s what they have to recommend:

HDFC AMC: Buy| LTP: 2,200| Stop Loss: Rs 2,130| Target: Rs 2,450| Upside 11%

Pidilite Industries: Buy| LTP: Rs 1346| Stop Loss: Rs 1300|Target: Rs 1,500| Upside 11%

Avenue Supermarts: Buy| LTP: Rs 1,490| Stop Loss: Rs 1,405| Target: Rs 1,610| 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.

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First Published on Aug 16, 2019 07:24 am
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