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Last Updated : Sep 11, 2019 07:42 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty may rally towards 11,150-11,200 if it breaks resistance of 11,042

The index closed marginally above its 21-day exponential moving average and formed bullish candle on daily charts, indicating bulls may be consolidating for major upside in coming sessions.

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The week started off on a positive note with Nifty50 rallying above 11000 levels while the S&P BSE Sensex also climbed Mount 37K.

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The Nifty closed above all its short-term moving averages such as 5, 13 and 20-day EMA.

The final tally on D-Street: the Sensex up 163 points at 37,145 and the Nifty closed 56.85 points higher at 11,003, the first time it crossed 11K since August 30.

The broader markets also outperformed—the BSE Midcap index rose 0.97 percent, while the BSE Smallcap index was up 0.92 percent.

Top Sensex gainers included Kotak Bank, L&T, Maruti Suzuki, and YES Bank. IT stocks such as Tech Mahindra, and Infosys lost more than 1 percent each.

The rupee pared initial gains to settle almost flat at 71.71 against the US dollar on Monday as rising crude oil prices kept investors edgy.

On the institutional front, FPIs were net sellers in Indian markets for Rs 188 cr while the DIIs were net buyers to the tune of Rs 686 cr, provisional data showed.

Big News:

The S&P BSE Sensex might have risen just about 3 percent in 2019, but one commodity which outperformed was ‘Gold’ which rose by about 20 percent in the same period.

The rising hopes of policy easing by various Central banks added to the metal’s strength. Signs of a slowdown are visible in the global economy which will push central bankers across the globe to push interest rates lower.

For investors, it might not be the right time to increase allocation towards gold but instead, they should wait for a dip. The ideal allocation should be around 10-15 percent of their portfolio, suggest experts. They can invest in Gold via exchange-traded funds or ETFs or Gold Funds.

Traditionally, buying physical gold is rarely seen as an investment as it hardly gets cashed out or changes its form. An investment in gold is usually in the form or ETFs or Gold Funds.

Technical View:

Nifty formed a bullish candle on the daily charts

The index closed marginally above its 21-day exponential moving average and formed bullish candle on daily charts, indicating bulls may be consolidating for major upside in coming sessions.

It is forming higher highs - higher lows from the last three trading sessions and supports are gradually shifting higher.

Experts feel if the index breaks its crucial resistance 11,042, then there could be a strong rally towards 11,150-11,200.

Three levels: 10889, 11028, 11200

Max Call OI: 11200, 11500

Max Put OI: 10800, 10600

Stocks in news:

Reliance Capital will sell up to 1.93 crore shares, representing 3.15 percent equity, in Reliance Nippon Life Asset Management (RNAM) for over Rs 505 crore on stock exchanges through 'Offer for Sale' route on Wednesday and Thursday.

Union Bank of India on Monday said its board of directors has approved a merger of Andhra Bank and Corporation Bank with itself and given nod for a capital infusion of Rs 17,200 crore in the current financial year.

US-based private equity firm Advent International Corporation has entered into a pact with the promoters of DFM Foods, to acquire 67.9 per cent stake in the Delhi-based firm for around Rs 851.6 crore in an all-cash deal.

Technical Recommendations:

We spoke to HDFC Securities and here’s what they have to recommend:


Rallis India: Buy| LTP: Rs 166.5| Target: Rs 185| Stop-Loss: Rs 155| Upside 11%

United Spirits: Buy| LTP: Rs 617| Target: Rs 675| Stop-Loss: Rs 588|Upside 9%


Siemens: Buy| LTP: Rs 1,219| Target: Rs 1,300 | Stop-Loss: Rs 1,170| 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.


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First Published on Sep 11, 2019 07:18 am
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