Moneycontrol
Get App
Last Updated : Aug 26, 2019 08:00 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Stiff resistance for Nifty at 11,100-11,200

It sees some resistance near 5-DEMA. The recent reform measures introduced by the govt could result in a kneejerk reaction.

Moneycontrol News @moneycontrolcom

The Nifty50 which closed with losses of about 2 percent for the week ended August 23 could see a strong opening when the market will resume trading on August 26 after Finance Minister Nirmala Sitharaman’s booster shot for the economy.

Close

However, the gains might be capped, as the US President Donald Trump escalated the trade war as he announced a wave of higher tariffs on Chinese goods & services.

Trump said existing 25% tariffs on some $250 billion in imports from China would rise to 30% come Oct. 1, the 70th anniversary of the founding of the People’s Republic of China.

Trump’s move, announced on Twitter, came hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods, prompting the president earlier in the day to demand U.S. companies move their operations out of China, said a Reuters report.

The Indian markets fell for a third straight week with both Sensex and Nifty trading below their crucial support placed at 37,000 and 11,900 respectively.

The S&P BSE Sensex fell 1.7 percent while the Nifty50 plunged 1.97 percent for the week ended August 23, but the carnage was seen in individual stocks.

As many as 582 stocks on the BSE hit a fresh 52-week low which includes names like Page Industries, Either Motors, Blue Dart, IndusInd Bank, HEG, Cipla, Escorts, Jubilant FoodWorks, and Bharat Forge.

Indian markets remained under pressure throughout this week on concerns of weakening economic growth, CEA dashed hopes of any material stimulus package, minutes from US Federal Reserve which gave few insight on the trajectory of future interest rates, and muted earnings season.

Moody's Investors Service on Friday cut India's GDP growth forecast for 2019 calendar year to 6.2 per cent from the previous estimation of 6.8 percent.

The rupee spurted 15 paise to close at 71.66 against the US dollar on Friday on hopes that the government will roll back the FPI surcharge and unveil measures to boost growth.

On the institutional front, FPIs were net sellers in Indian markets for Rs 1737 cr while the DIIs were net buyers to the tune of Rs 1548 cr, provisional data showed.

Big News: 


 

Government has announced a slew of measures to boost the economy, revive slowdown in industries ranging from automobiles to even consumer staples. 


Analysts expect banks, NBFCs, Housing Finance Companies (HFCs), auto stocks and consumption stocks to come back in flavour. They are positive on major auto OEMs – PV and 2W stocks namely Maruti Suzuki, Hero Motocorp, TVS Motors, and Bajaj Auto.In BFSI, we are positive on RBL Bank, ICICI Bank, SBI and Axis Bank. Banking stocks will see a strong relief rally in the next week.Technical View:Nifty forms a bullish candle on the daily chartsThe index snapped three-day loss and formed bullish candle which resembles a Piercing kind of pattern on daily charts, but for the week the index lost 2 percent and formed bearish candle on the weekly scale.It sees some resistance near 5-DEMA. The recent reform measures introduced by the govt could result in a kneejerk reactionOn the higher side 11100, 11200 levels are likely to act as a stiff resistance for NiftyThree levels: 10,637, 11,100, 11200Max Call OI: 11,000, 11,100

Max Put OI: 10700, 10500

Stocks in news: 

Drug firm Ipca Laboratories on August 24 said the US Food and Drug Administration (FDA) has conducted an inspection of its formulations manufacturing unit in Silvassa and issued three observations.

The two IndiGo founders - Rahul Bhatia and Rakesh Gangwal - have finally called a truce. In a statement on his website, GovernanceIndia, Gangwal, on the night of August 23, said the company's Board has approved a new related party transaction policy, and has also closed the 'loophole' in the Articles of Association.

State Bank and seven other state-run banks have announced that their new loans and deposits will be priced to the repo-rate. Now, State-run Union Bank on Friday became the latest state-run bank to offer repo-linked home and auto loans.

Technical Recommendations:

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

Tata Elxsi: Buy| LTP: Rs 649.25| Target: Rs 685| Stop Loss: Rs 631| Upside 5%

BEL: Buy| LTP: Rs. 99.90| Target: Rs 111| Stop Loss: Rs 92.40| 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.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Aug 26, 2019 07:58 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant