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Last Updated : Nov 27, 2018 07:17 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Volatility to continue in near term, rally only possible if Nifty crosses 10,774

Experts expect the volatile movement to continue in near term. The rally is only possible if the Nifty crosses 10,774 levels.

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What a day for Indian markets! After a muted start we saw bulls which took control over D-Street in the second half of the trading session.

The finally tally -- the S&P BSE Sensex rose 373 points to close at 35, 354 while the Nifty50 rallied 101 points to end at 10,628.

The recent correction in crude oil prices and subsequent recovery in rupee has raised hope of status quo by the RBI in review meeting next month, suggest experts.

Also, Morgan Stanley maintains an overweight stance on India also added to optimism.

Sectorally, auto, banks, FMCG sector rose 1-2 percent respectively while on the losing side PSU, Healthcare, and Metal stocks saw some bit of profit taking.

Technically, bulls would only be able to take charge once the index close above 10774 levels.

On the downsides 10489 shall remain a critical support

Rupee breaks 7-day winning run, down 18 paise at 70.87 a dollar

FIIs bought Rs 62 crore worth of Indian Capital Market while DII poured in Rs 351 crore on Monday, according to provision data on NSE.

Big News:

Finally! Some good news for emerging markets which witnessed huge foreign money outflows thanks to the rise in the US dollar. In 2018, a tricky handoff in growth, policy and inflation drove a rolling bear market.

Morgan Stanley is of the view that the bear market is mostly over for EM, has further to go in US credit and is about to begin for the US dollar.

Morgan Stanley double has upgraded EM from underweight to overweight and has downgraded US stocks to underweight.

Specifically for India, Morgan Stanley maintains an overweight rating.

It further added that the RBI is unlikely to hike rates, given the difficulties in the domestic banking sector, while inflation has played in favour of the RBI.

There are four Indian stocks in Morgan Stanley Asia Pacific ex-Japan Focus List which include GAIL India, ICICI Bank, L&T, and TCS.

Technical View:

Nifty formed a Hammer like pattern on charts.

A Hammer which is a bullish reversal pattern is formed after a decline. A Hammer consists of no upper shadow, a small body, and long lower shadow.

Experts expect the volatile movement to continue in near term. The rally is only possible if the Nifty crosses 10,774 levels.

Three levels: 10500, 10774, 10800

Max Call OI: 10700, 11000

Max Put OI: 10500, 10600

Stocks in news:

Graphite electrode maker HEG Monday said its board has approved a share buyback offer worth Rs 750 crore. Besides, the board has cleared an investment proposal of Rs 1,200 crore.

Crisis-hit Jet Airways continues to use layoffs in small chunks as one of the means to reduce cost with the carrier handing over pink slips to around 16 more employees, a source said.

Sun Pharma, India's largest drugmaker has entered into a definitive agreement to acquire Japan-based Pola Pharma. Sun Pharma will pay $1 million to acquire the Japanese drugmaker, which is debt-free.

Technical Recommendations:

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

ITC: Buy| LTP: Rs 286| Target Rs. 304 | Stop-Loss: Rs 276 | Return 6%

Canara Bank: Buy| LTP: Rs 264| Target: Rs 290 | Stop-Loss: Rs 248| Return 10%

PVR: Buy| LTP: Rs 1437| Target: Rs 1530| Stop-Loss: Rs 1375| Return 6%

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 Nov 27, 2018 07:16 am
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