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Last Updated : Feb 08, 2019 07:21 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Short-term traders should book profits below 11,043

Short-term traders are advised to book profits below 11043 kinds of levels whereas positional traders with multi-week time horizon can remain cautiously optimistic and look for a bigger target placed around 11350 with a stop below 10987 on a closing basis, suggest experts.

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What a day for D-Street! A lot of volatility but towards the end benchmark indices closed around the same level where they opened which suggests traders preferred taking profits at higher levels.

Last one hour of selling pushed the S&P BSE Sensex below 37000 while Nifty50 also closed below 11100 levels.

The market turned volatile after the announcement of RBIs monetary policy as investors started booking profit from the recent rally. The Nifty rallied from 10581 levels recorded on Jan 29 towards 11000 levels this week which translates into an upside of nearly 5%.

The Monetary Policy Committee (MPC), on expected lines, changed its stance to 'neutral' from 'calibrated tightening' on February 7 in its sixth bi-monthly monetary policy review meeting but what came as a surprise was the repo rate cut of 25 basis points (bps).

The future commentary suggests that more cuts are in the offing that will be taken positively by traders and investors. Industries like real estate and NBFCs, which are facing severe margin pressures, will benefit from this decision.

The rupee on Thursday appreciated by 11 paise to close at 71.45 against the US dollar after the Reserve Bank of India cut the repo rate and changed its policy stance to 'neutral'.

On the institutional front, FPIs and DIIs were net buyers in India markets to the tune of Rs 418 crore, and Rs 294 crore respectively, provisional data showed.

Big News:

On the earnings front, as many as 240 companies will declare their results for the quarter ended December on Friday which include names like Allcargo Logistics, Avanti Feeds, BPCL, Cochin Shipyard, Inox Wind, Jaiprakash Associates, Dr Lala Pathlabs, M&M, Tata Steel, UCO Bank, VIP Industries, and VST Tillers etc. among others.

M&M: PAT likely to grow by 3% YoY to Rs 1045 crore

Tata Steel: PAT likely to fall by 9% YoY to Rs 2645 crore

(All estimates are from Motilal Oswal)

Technical View:

Nifty formed a Doji pattern on charts

Short-term traders are advised to book profits below 11043 kinds of levels whereas positional traders with multi-week time horizon can remain cautiously optimistic and look for a bigger target placed around 11350 with a stop below 10987 on a closing basis, suggest experts

India VIX fell down by 1.25 percent at 15.43 levels. VIX needs to hold below 16 zones to extend its positive momentum with the hold above 10985 zones.

Max Call OI: 11400, 11100

Max Put OI: 11000, 10700

Technical Recommendations:

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

Ceat: Buy| Target: Rs 1233| Stop Loss: Rs 1080| Upside 9%

Havells India: Buy| Target: Rs 800| Stop Loss: Rs 722| Upside 7%

Manappuram Finance: Buy| Target: Rs 115| Stop Loss: Rs 98.5| Upside 11%

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 Feb 8, 2019 07:21 am
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