Moneycontrol Be a Pro
Get App
Last Updated : Apr 16, 2019 07:04 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Strong close above record high of 11,761 necessary for Nifty to move higher

The price action seen on April 15 is not strong enough to push the market higher and for major upside, the index has to register a strong close above its record high of 11,761, experts said.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Unlike last Monday when Nifty struggled to keep afloat above 11600, this one was dominated by bulls. The index closed higher for the third straight sessions in a row to close just a shade below 11700 levels.

The final tally on D-Street – the S&P BSE Sensex closed 138 points higher at 38,905 while the Nifty50 added 46 points to close at 11,690.

Close

Bulls pushed the index above 11,700 levels in intraday trade but witnessed selling pressure at higher levels. Investors await fresh triggers and till then market is likely to remain in a range. But, there are plenty of opportunities among select stocks.

The big macro number which came out on Monday was the WPI inflation data.

Wholesale price-based inflation rose for the second consecutive month to 3.18 percent in March on costlier food and fuel, government data released Monday showed.

Experts feel that even though WPI inflation inched to 3.18% in March due to rise in food prices, but at the same time IMD’s forecast of near normal monsoon may ease the concern over inflation

IMD’s first official long-range forecast indicates `near normal’ South-West monsoon which would come as a relief to the Street after Skymet predicted below normal monsoon due to developing El Nino.

According to IMD rainfall is expected to be 96 percent of LPA or long period average (normal range is 96-104% of LPA). The department has assigned probability of 39% for normal and 32% for below-normal rainfall.

IMD expects weak El Nino conditions to prevail during the season, but with reduced intensity. Typically, El Nino is unfavourable for rainfall in India.

The rupee on Monday declined by 25 paise to close at 69.42 against the US dollar as forex traders turned cautious in a holiday-truncated week.

On the institutional front, FPI were net buyers in Indian markets for 713 crore while DIIs were also net buyers to the tune of Rs 581 crore, provisional data showed.

Big News:

As many as six  companies will be reporting their results for the quarter ended March later today which include names like Wipro, Den Networks, 5Paisa etc. among others.

Wipro: Net profit is likely to rose 23% YoY to Rs 2474 crore

The dollar revenue growth is likely to increase by 3.5% YoY

Wipro had guided for 0-2 percent QoQ CC growth keeping in mind the macro uncertainties. With the quarter passing by relatively unscathed on the macro front, Motilal Oswal expects WPRO’s revenue growth to be in the upper half of this band – at 1.5 percent QoQ CC.

Overall EBIT margin is expected to remain flat at 18.4%. Remember, both TCS and Infosys took hit in their EBIT margin

Technical View:

Nifty formed a small bullish candle but closed a shade below 11700 levels

The price action seen on April 15 is not strong enough to push the market higher and for major upside, the index has to register a strong close above its record high of 11,761, experts said.

Three levels: 11648, 11704, 11760

Max Call OI: 12000, 11800

Max Put OI: 11500, 11000

Stocks in news:

Wires and cables manufacturer Polycab India will make a debut on bourses on April 16 after a overwhelming response to its public issue last week. The final issue price is fixed at higher end of price band of Rs 533-538 per share.

Tata Metaliks, a pig iron manufacturer and supplier, said Monday its net profit rose by 17.74 percent to Rs 64.35 crore during the quarter ended March 31, 2019.

Jet Airways' survival remained under serious threat after its lenders Monday deferred a much-anticipated decision to provide emergency funds to the carrier following a marathon meeting, even as its pilots' union appealed to the lenders and the prime minister to save the airline.

Technical Recommendations:

We spoke to Religare Broking Ltd and they have recommended a mix of buy or sell ideas:

Zee Entertainment Enterprises: Sell April Futures| Target: Rs 395|Stop-Loss: Rs 434 | Downside 5.9%

Century Textiles & Industries: Buy| Target: Rs 975| Stop-Loss: Rs 900| Return 5.4%

L&T Finance Holdings: Buy| Target: Rs 162| Stop-Loss: Rs 146|Upside 7.2%

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.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Apr 16, 2019 07:04 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant