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Last Updated : Dec 21, 2018 07:43 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | PSU banks in focus after recap plan announcement; 3 stocks to bet on

Technically, the momentum is strongly favouring the bulls and traders are advised to buy a fresh breakout above 10990 kind of levels.

Kshitij Anand @kshanand
 
 
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What a day it was for the Indian markets. We saw Sensex recover by more than 200 points from the lows while the Nifty bounced from its 5-DEMA to close above 10,950.

Let’s look at the final tally – Sensex closed 52 points lower at 36431 while the Nifty50 ended 15 points down at 10,951.

Close

Remember, the market opened with a gap down after US Fed raised rates by 25 bps and revised GDP growth downwards to 2.3% from 2.5% for 2019.

Oil marketing companies gained as Brent slipped below $56/bbl while PSU stocks remained in focus after a report suggested that the government has sought Parliament's nod for an additional Rs 41,000 crore capital infusion in public sector banks (PSBs).

Technically, the momentum is strongly favouring the bulls and traders are advised to buy a fresh breakout above 10990 kind of levels.

Big News:

PSU banks will remain in limelight today as well as Finance Minister Arun Jaitley said that the government will infuse Rs 83,000 crore in public sector banks in the next few months of the current fiscal.

Earlier in the day, the government sought Parliament's approval for infusion of an additional Rs 41,000 crore in the state-owned banks through the second batch of Supplementary Demands for Grants.

This would enhance the total recapitalisation in the current fiscal from Rs 65,000 crore to Rs 1.06 lakh crore.

Technical View:

Nifty forms bullish candle for fifth consecutive day

Even though the momentum remains fairly strong as the market was able to absorb much of the selling pressure after a gap-down start, technical chartists advise investors to remain cautious as we are trading near crucial resistance levels.

If Nifty breaches 10800 levels on closing basis then it shall set the tone for a short-term selloff with an initial target placed around 10750 kind of levels.

On the upsides, if 11000 is conquered then the rally can be eventually expected to head towards higher levels with targets placed around 11400.

Three levels: 10880, 10900, 11000

Max Call OI: 11000, 11200

Max Put OI: 10000, 10500

Technical Recommendations:

We spoke to Way2Wealth Brokers Pvt Ltd and here’s what they have to recommend:

Bajaj Electricals Ltd: Buy above Rs 525.50| LTP: Rs 515| Target: 576| Stop Loss: Rs 495| Return 11%

Motherson Sumi Ltd: Buy at 170| LTP: Rs 170.35| Target: Rs 194| Stop Loss: Rs 160| Return 14%

Glenmark Pharma: Buy at Rs 687| LTP: Rs 686| Target: Rs 740| Stop Loss: Rs 650| Return 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 Dec 21, 2018 06:53 am
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