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Last Updated : Apr 15, 2019 07:17 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty must decisively hold 11,550 zones to retest lifetime high of 11,761

It now requires a decisive hold of 11550 zones to retest its lifetime high of 11761 and then a fresh move towards 11888 zones, suggest experts.

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Benchmark indices on a weekly basis closed in the red which suggests heavy selling is visible at higher levels.

For an index to surpass its previous record high, it has to hold above 11550-11500 levels

For the last 10 trading sessions, Nifty has been consolidating in the range of 11550 to 11,760. A break of this range would give the signal of fresh momentum in the market.

Markets will react to earnings of TCS and Infosys as well as macro data which were all released post market hours on Friday

India’s factory output growth dropped to a 20-month low in February in a worrying sign for the country’s growth prospects.

Data released by the statistics office on Friday showed factory output at 0.1 percent in February, against 1.4 percent in the previous month.

India's retail inflation stood at 2.86 percent in March, higher than previous month's 2.57 percent, on account of increase in prices of food articles and fuel, but it is still below RBI comforts level of 4 percent.

Halting its three-day winning run, the rupee Friday closed 25 paise lower at 69.17 to the US dollar as forex traders weighed rising crude oil prices.

On the institutional front, FIIs were net buyers in Indian markets for Rs 897 crore while DIIs were net sellers for Rs 15 crore, provisional data showed. On a weekly basis, FIIs poured in more than Rs 4000 crore in the last five trading sessions.

Big News:

Two big largecaps stocks from the IT space declared their results for the quarter ended March post market hours on Friday

Both TCS and Infosys reported better growth in dollar-denominated revenue for FY19 compared with the previous fiscal.

Infosys reported a 7.9 percent growth compared with 7.2 percent in FY18

TCS reported 9.6 percent growth in FY19 was the highest in four fiscals.

EBIT margin has taken a hit for both TCS and Infosys. EBIT margin shrank by 50 basis points sequentially to 25.1 percent for TCS while Infosys reported a 110-bps drop in the margin at 21.4 percent.

A strong order book of TCS took stock price higher on the Monday trading session against Infosys. Experts see a decline in Infosys stock price on Monday session because of poor guidance.

Sharekhan has put a buy rating on TCS and Infosys with a target price of Rs 2400, and Rs 840 respectively.

Technical View:

Nifty formed a small Bearish candle on the weekly scale for the 2nd week in a row

Weekly scale suggests that hurdles are also visible at lifetime high at 11761 zones

The index has been consolidating in the range of 11550 to 11760 zones from the last eleven trading sessions

It now requires a decisive hold of 11550 zones to retest its lifetime high of 11761 and then a fresh move towards 11888 zones, suggest experts

India VIX moved up sharply by 14.19 percent in the last week at 21 mark which is the highest zones in the last six months

Three levels: 11578, 11657, 11761

Max Call OI: 12000, 11800

Max Put OI: 11500, 11700

Stocks in news:

TCS and Infosys will be in focus after they reported their results for the quarter ended March post market hours on Friday.

Metropolis Healthcare's Rs 1,204 crore initial public offer (IPO) was subscribed 5.79 times on the third day of the issue on Friday. The price band has been fixed in the range of Rs 877-880 apiece.

Metropolis Healthcare's Rs 1,204 crore initial public offer (IPO) was subscribed 5.79 times on the third day of the issue on Friday. The price band has been fixed in the range of Rs 877-880 apiece.

Drug major Dr. Reddy's Laboratories Saturday said it has acquired a portfolio of 42 abbreviated new drug applications (ANDAs) in the US. The value of the total addressable market for these products in the US is around USD 645 million for the calendar year ending in December 2018.

Technical Recommendations:

We spoke to 5nance.com and they have given us a mix of buy or sell ideas:

ITC: Buy| Target: Rs. 321| Stop-Loss: Rs. 290 | Upside: 5%

Kajaria Ceramics: Buy| Target: Rs 647| Stop-Loss: Rs 595| Upside: 4%

Radico Khaitan: Sell | Target: Rs. 347 | Stop-Loss: Rs 375 | 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 Apr 15, 2019 07:17 am
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