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Last Updated : Sep 13, 2019 07:32 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Selling pressure could accelerate if Nifty slips below 10,850

A bearish candlestick pattern suggests that bears were able to regain control after the index moved in a narrow range for the past few sessions.

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Market snapped 5-day winning streak as profit booking hit D-Street at higher levels on Thursday. The S&P BSE Sensex dropped more than 160 points while the Nifty50 was broke below 11000 levels.

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The final tally on D-Street – the S&P BSE Sensex dropped 166 points to 37,104 while the Nifty50 closed 52 points down at 10,982.

Profit booking hit D-Street ahead of the crucial ECB meeting and macro data.

The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations.

Sectors which came under pressure include auto, telecom, energy, as well as consumer discretionary sector while banks bucked the trend.

In the broader market space, the S&P BSE Midcap index fell by 0.18% while the S&P BSE Smallcap index bucked the trend, and was up 0.12%

In terms of Open interest – Indigo remain top gainer in terms of OI, followed by Tata Power, CESC, and HDFC which are showing signs of long buildup.

Top Sensex gainers: HDFC Bank, Sun Pharma, and ICICI bank

Top Sensex losers: YES Bank fell by over 5 percent, Tata Motors was down 4.8 percent, and Maruti Suzuki fell 3 percent.

Continuing its winning run for the sixth straight session, the rupee climbed 52 paise to end at 71.14 against the US dollar on September 12 as signs of easing trade tensions between the US and China buoyed global markets.

On the institutional front, FPIs were net buyers in Indian markets for Rs 783 cr while the DIIs were net sellers to the tune of Rs 126 cr, provisional data showed.

Big News:

Macro data will drive the markets - IIP data and CPI data

India's industrial output grew 4.3 percent month-on-month (MoM) in July, according to the Index of Industrial Production (IIP) data released by the government on September 12.  Industrial output, or factory output, is the closest approximation for measuring economic activity in the country's business landscape.

The manufacturing sector grew 0.6 percent in April-June 2019 as against 12.1 percent in the same quarter last year and 3.1 percent in January-March, reflecting decelerating production activity in India's factory floors.

India's retail inflation rate in August grew 3.21 percent, remaining within Reserve Bank of India's (RBI) target level of 4 percent, latest price data released by the Central Statistics Office (CSO) on September 12 showed. Retail inflation for July stood at 3.15 percent.

Technical View:

Nifty formed a Bearish Engulfing pattern on daily charts

A bearish candlestick pattern suggests that bears were able to regain control after the index moved in a narrow range for the past few sessions.

It is usually seen as the end of an uptrend but if index breaks below its crucial support level of 10,850, selling pressure could accelerate.

Three levels: 10,964, 11,081, 11,100

Max Call OI: 11,000, 11,200

Max Put OI: 10,800, 10,600

Stocks in news:

State-run Bank of Baroda has put on block the erstwhile headquarters of Dena Bank in the financial capital at a reserve price of Rs 530 crore. Dena Bank and Vijaya Bank got amalgamated with Bank of Baroda from this April.

Drugmaker Lupin is scouting for in-licensing deals to launch new products in neuro-psychiatry and oncology segments to give a boost to its domestic formulation market.

Engineering and construction major Larsen & Toubro (L&T) on September 12 said it has procured 'significant' orders in Maharashtra and Odisha.

Technical Recommendations:

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

UPL: Sell| LTP: Rs.567 | Target: Rs 535 |Stop Loss: Rs.591 | Downside 7%

HDFC Bank: Buy| LTP: Rs 2,270 | Target: Rs 2,375 |Stop Loss: Rs 2,225| Upside 4.6%

Castrol India: Buy| LTP: Rs.129 | Target: Rs 144 |Stop Loss: Rs.119 | Upside 13.39%

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 13, 2019 07:20 am
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