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Last Updated : Nov 11, 2019 07:55 AM IST | Source: Moneycontrol.com

Early on D-Street | Close below 11,850 will take Nifty towards 11,820-11,720

If the weakness persists, traders are advised to avoid long side bets and can consider positional shorts with a stop above 12035 on a closing basis, suggest experts.

Profit-taking hit D-Street on November 8 after Moody’s Investors Services changed the outlook on India to negative from a stable, which pulled down the returns for both the Sensex and Nifty for the week ended November 8.

The Sensex which hit a record high of 40,749 on November 8 closed the week with gains of just 0.4 percent. The Nifty had a touch-and-go moment with 12,000 but managed to hold above 11,900 to close the week with gains of 0.15 percent for the week ended November 8.

Close

The broader market continued to remain under pressure as the S&P BSE Mid-cap index fell 1.07 percent while the S&P BSE Small-cap index was down 0.93 percent in the same period.

But, there was plenty of action in individual stocks. As many as 21 stocks in the S&P BSE 500 index rose 10-40 percent in the week gone by that include names like IIFL Finance, CG Power, Varun Beverages, Indiabulls Real Estate, Coffee Day, DHFL, Raymond, and Reliance Power.

On the macro front, foreign exchange reserves rose by $3.515 billion to touch a fresh lifetime high of $446.098 billion in the week to November 1, helped by an increase in foreign currency assets, RBI data showed on Friday.

The rupee on Friday tumbled by 31 paise to hit an over three-week low of 71.28 against the US dollar after Moody's Investors Services cut India's rating outlook to negative citing growth concerns.

On the institutional front, FPIs were net buyers in Indian markets for Rs 932 cr, and DIIs were net sellers to the tune of Rs 584 cr, provisional data showed.

Big News:

On the earnings front, as many as 272 companies will declare their results for September quarter which include names like Aban Offshore, Adani Ports, Alembic, Alkem Laboratories, Balrampur Chini, Britannia Industries, Coal India, Hindalco, India Cements, Jindal Stainless, KEI Industries, Kolte-Patil, Mahanagar Gas, NHPC, NMDC, and Rolta India, etc. among others.

Britannia Industries: PAT likely to grow by nearly 5% YoY

Coal India: PAT likely to fall by 25% YoY

Hindalco: PAT likely to fall by 25% YoY

(All estimates are from Motilal Oswal)

Technical View:

The Nifty50 formed a bearish candle on the daily charts and a ‘Doji’ kind of candle on the weekly charts

On the positive side, Nifty formed a ‘Golden Cross’ pattern on daily charts where 50-Days Moving Avg moves above the 200-DMA.

The point to note is that Nifty closed below its crucial support of 5-Days EMA placed at 11908

Weakness in this regard will be confirmed on a close below 11850 levels as breach of this not only result in a lower low on price chart but also in a breakdown of ascending trendline, suggest experts.

A close below 11850 will take the index towards 11820-11720

For time being upsides may get capped around 12034 levels which was the intraday high of Friday

If the weakness persists, traders are advised to avoid long side bets and can consider positional shorts with a stop above 12035 on a closing basis, suggest experts.

Three levels: 11888-11850, 12034, 12103

Max Call OO: 12000, 12300

Max Put OI: 11600, 11500

Stocks in news:

India's second-largest commercial vehicle maker Ashok Leyland on November 8 reported a massive 92.6 percent year-on-year decline in its net profit at Rs Rs 38.9 crore for the second quarter ended September 30, 2019.

Public sector lender Bank Of Baroda's July-September quarter profit jumped 73.2 percent year-on-year to Rs 736.7 crore despite a sharp increase in provisions. The growth was driven by other income, net interest income (NII) and pre-provision operating profit (PPoP).

IDBI Bank narrowed its losses to Rs 3,458.8 crore in the quarter ended September 2019 from Rs 3,602.5 crore in the same period last year. Elevated provisions and higher operating expenses dented profitability.

Technical Recommendations:

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

Tata Steel: Buy| LTP: Rs 397| Target: Rs 425-440| Stop Loss: Rs 374| Upside 10%

Alembic Pharma: Buy| LTP: Rs 577| Target: Rs 648| Stop Loss: Rs 527| Upside 12%

Disclaimer: The views and investment tips expressed by investment experts 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 Nov 11, 2019 07:55 am
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