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Last Updated : Jun 20, 2019 07:07 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty may move towards 11,800 if it sustains above 50-day EMA on closing basis

If the index sustains above its 50-day EMA on closing basis then there could be a decent pullback attempt towards 11800.

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There was plenty of action on D-Street on Wednesday as index pared gains after hitting 11800 in intraday trade to close almost unchanged when compared to previous day’s close.

It was a volatile Wednesday and profit taking at a higher level is clearly visible.

Close

The big disappointment came from the broader market which has been under pressure for quite some time now. Even though benchmark indices closed flat-to-higher, the carnage was seen in individual stocks largely from the broader market space.

The S&P BSE Midcap and Smallcap both ended with losses of 0.7 percent and 1.4 percent, respectively.

More than 500 stocks on the BSE hit their fresh 52-week low including Jain Irrigation, Jet Airways, Reliance Capital, Aksh Optifibre, Bosch, HEG, CARE Ratings, Indiabulls Housing Finance, Yes Bank, Lupin and TTK Healthcare, among others.

Markets will react to the outcome of the FOMC meeting on Thursday morning.

The rupee inched up 2 paise to end at 69.68 against the US dollar Wednesday ahead of the US Fed's interest rate decision. Hopes of a breakthrough in US-China trade talks and softening crude oil prices supported the local unit, forex traders said.

In terms of institutional flows, FPIs were net sellers in Indian markets for Rs 97 crore while the DIIs were also net sellers to the tune of Rs 104 crore, provisional data showed.

Technical View:

Nifty forms High Wave candle on daily charts

Traders remained cautious amid sell-off in stocks that have high debt and ahead of the outcome of FOMC meet

The index managed to defend its 50-day exponential moving average (11,659) and remained highly volatile in range of 175 points, forming a High Wave candlestick pattern on the daily chart.

If the index sustains above its 50-day EMA on closing basis then there could be a decent pullback attempt towards 11800.

Three levels: 11625, 11802, 11900

Max Call OI: 12000, 11800

Max Put OI: 11500, 11700

Stocks in news:

Rajesh Exports Wednesday said it has bagged an order worth Rs 942 crore from Germany to supply a designer range of jewellery. The order is to be completed by August 2019, the company said in a regulatory filing.

Mortgage major HDFC Wednesday announced the acquisition of majority stake in Apollo Munich Health Insurance from the Apollo Hospitals Group and Munich Health for Rs 1,347 crore and will merge the company with its arm HDFC Ergo General Insurance.

ONGC Videsh Ltd and its Indian, as well as foreign partners, have agreed to invest $20 billion in constructing a gas liquefaction and export terminal in Mozambique to monetise vast offshore natural gas reserves they had found.

Technical Recommendations:

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

ICICI Bank: Buy| LTP: Rs 419| Stop Loss: Rs 405| Target: Rs 475| Upside 13%

Infosys: Buy| LTP: Rs 751| Stop Loss: Rs 720| Target: Rs 850| Upside 13%

Vinati Organics: Buy| CMP: Rs 2108| Stop Loss: Rs 2000| Target: Rs 2350| Upside 11%

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 Jun 20, 2019 07:07 am
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