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Last Updated : Mar 08, 2019 07:14 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty needs to decisively surpass 11,100 for strong upmove going ahead

If investors are long on the index then the crucial support to watch out is placed at 11000 levels while on the upside the first resistance is placed at 11,118 followed by 11180, suggest experts.

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After three consecutive bullish candles, Nifty formed a bearish candle which suggests that the momentum could be stalling. But, the good part is that we closed above 11050 which is a positive sign for the bulls.

It was a day of profit booking on D-Street. The S&P BSE Sensex which was up nearly 200 points closed with gains of just 89 points towards the close of the trade while Nifty50 managed to hold on to 11050 levels. The index finally closed 5 points up 11,058.

Broader market indices showed signs of weakness, but the overall market depth was tilted in favor of the buyers. The S&P BSE Mid-cap index closed 0.3 percent lower while the Small-cap index closed 0.11 percent down.

IT stocks succumbed to selling pressure for yet another day as rupee hit a 2-month high. Wipro was down 3 percent, while Infosys and Tech Mahindra shed a little over 1 percent each.

However, there were lot of stock specific opportunities which are available for traders, suggest experts. Investors should not turn their eye away from PSU banks, as well as metals which are moving higher post correction, they say.

The formation of long lower shadows in the last two sessions indicate emergence of buying interest at lows, but the Nifty is currently facing stiff resistance at 11,100-11118 which was the top formed on February 7.

If investors are long on the index then the crucial support to watch out is placed at 11000 levels while on the upside the first resistance is placed at 11,118 followed by 11180, suggest experts.

The rupee darted up 28 paise to close at 70 against the dollar on Thursday amid robust foreign inflows and strong buying in domestic equities.

On the institutional front, FPIs were net buyers in Indian market for Rs 1137 crore while DIIs were net sellers to the tune of Rs 925 crore, provisional data showed.

Technical View:

Nifty formed a ‘Hanging Man’ kind of patter

The index managed to hold above 11,000 zone for second consecutive session amid volatile trade, but it needs to decisively surpass 11,100 levels for strong upmove in the market going ahead, experts said.

India VIX fell by 2.03 percent at 15.29 levels.

Three levels: 11027, 11089, 11,118

Max Call OI: 11500, 11200

Max Put OI: 11000, 10800

Stocks in news:

Sugar stocks will be in focus for the second day in a row after the Centre on March 7 announced an additional soft loan of Rs 12,900 crore for sugar mills to create ethanol capacity under a recently launched scheme.

India's second-largest software services firm Infosys on March 7 said it has been selected by Rolls-Royce Plc UK as one of its strategic long-term partners to deliver digital and engineering services.

State-owned Oil and Natural Gas Corporation (ONGC) Thursday signed a contract for the prolific Chinnewala Tibba gas field in Rajasthan, which it had discovered around 15 years ago but was taken away and auctioned by the government.

Technical Recommendations:

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

Bajaj Finserv: Buy| Target: Rs 7194| Stop Loss: Rs 6350| Upside 9%

Allahabad Bank: Buy| Target: Rs 61.5| Stop Loss: Rs 53.25| Upside 10%

KNR Construction Ltd: Buy| Target: Rs 250| Stop Loss: Rs 226| 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.
First Published on Mar 8, 2019 07:14 am
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