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Last Updated : May 22, 2019 07:00 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Volatility could continue for next two sessions

Volatility could continue for the next two sessions as after the exit poll, now everyone is keenly waiting for the actual results on May 23.

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A day of consolidation on D-Street after a monster rally seen in the previous trading session. The Nifty50 closed marginally above its support of 11700 levels.

The broader market outperformed the benchmark with BSE Midcap and Smallcap ending with losses of 0.9 percent and 0.6 percent, respectively.

Close

Amongst the sectoral indices, except consumer durables that ended with gains of 0.7 percent, all the other sector indices ended in red with auto, banking and metal being the top losers.

It looks like the market seems to have factored in a victory of NDA on May 23, but an adverse result could lead to steep correction in markets, suggest experts.

More than 50 stocks hit 52-week highs on the BSE that include Bajaj Finserv, Bajaj Finance, HDFC Bank, HDFC, Kotak Bank, L&T, Titan Company, Siemens, Axis Bank and SBI, among others.

The rupee on Tuesday closed little changed against the US dollar as traders avoided taking long positions ahead of the final outcome of Lok Sabha elections due on May 23.

On the institutional front, FPIs were net buyers in Indian markets for Rs 1185 crore while DIIs were net sellers to the tune of Rs 1090 crore, provisional data showed.

Big News:

On the earnings front, as many as 140 companies will report their results for March quarter which include names like Ashok Buildcon, Bank of Baroda, Canara Bank, Cipla, Cummins India, IndusInd Bank, MOIL, Thermax etc. among others.

Bank of Baroda: PAT likely to rise by 656 crore

Ashok Buildcon: PAT likely to fall by 24% YoY to Rs 80 cr

Cipla: PAT likely to rise by 1% YoY to Rs 336 crore

(Estimates are from Motilal Oswal)

Technical View:

Nifty formed a Dark Cloud Cover on daily candlestick charts

The pattern holds importance because it shows that there could be a shift in momentum from upside to downside. However, that still requires confirmation and a close below 11,600 could be an indication of fading momentum.

India VIX moved up 8.33 percent at 25.65 and recovered from previous day’s close of 23.65. Volatility could continue for the next two sessions as after the exit poll, now everyone is keenly waiting for the actual results on May 23.

Three levels: 11682, 11883, 12000

Max Call OI: 12000, 12500

Max Put OI: 11000, 10500

Stocks in news:

Tech Mahindra has reported 8.8 percent fall in its fourth quarter consolidated net profit at Rs 1,126.6 crore against Rs 1,230.8 in the quarter ended December 2018.

Auto component maker Bosch on Tuesday reported a 5.09 per cent decline in net profit at Rs 411.70 crore for the fourth quarter ended March 2019, on lower sales volume and unfavourable exchange rates.

Crompton Greaves Consumer Electricals posted a 36.2 percent year-on-year (YoY) jump in its March quarter consolidated net profit at Rs 140.54 crore. This was on account of a one-time tax gain.

Technical Recommendations:

We spoke to SMC Global Securities and here's what they have to recommend:

Siemens: Buy| Target: Rs 1300| Stop Loss: Rs 1,080| Upside 12%

Century Textiles & Industries: Buy| Target: Rs 1,066| Stop Loss: Rs 900| Upside 11%

Muthoot Finance: Buy| Target: Rs 685| Stop Loss: Rs 575| 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.

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First Published on May 22, 2019 07:00 am
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