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Last Updated : Oct 18, 2019 07:17 AM IST | Source: Moneycontrol.com

Early on D-Street | Create fresh long positions in Nifty with stop loss below 11,430 on closing basis

The immediate resistance would be placed around 11700 levels, but some experts feel that there is a possibility that Nifty could hit new highs in this calendar year.

 
 
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A terrific Thursday for sure on D-Street! Bulls not just held onto the momentum but also broke above crucial resistance levels which is a positive sign.

The S&P BSE Sensex rallied more than 400 points while the Nifty50 closed with gains of over 100 points

Close

The final tally on D-Street – the S&P BSE Sensex rose 453 points to 39,052 while the Nifty50 closed 122 points higher at 11,586, just a shade below 11600 levels.

Investors' wealth in terms of average market capitalisation on the BSE rose by Rs 1.57 lakh crore on Thursday to Rs 147.88 lakh cr compared to Rs 146.31 lakh cr seen on Wednesday, BSE data showed.

What led to optimism? Well, global cues turn favourable after Brexit Deal, and on the domestic front optimism over a recovery in the economy led by hopes of further stimulus, recovery in festive demand, good monsoon and lower interest rate kept sentiments upbeat, suggest experts.

Adding to the optimism – FIIs have also been net buyers for the past 4 trading sessions and have poured in more than Rs 2000 cr in Indian equity markets since October 11, provisional data showed.

Sectorally, the S&P BSE Auto index rose 2.9%, followed by Consumer Discretionary added 1.8%, and Bankex rose 1.59%.

On the broader market front – the S&P BSE Midcap index was up 1.77% while the S&P BSE Smallcap index gained 0.89%.

Volume spike which also saw long buildup includes names like TVS Motor, Motherson Sumi, Eicher Motors, and Tata Motors.

Blue-chip stocks saw a rise in delivery percentage which includes names like ITC, HDFC, L&T, RIL, etc. among others.

Top Nifty gainers: Tata Motors, Indiabulls Housing Finance, and YES Bank which were up more than 10%

Top Nifty losers: TCS, Grasim Industries, and Vedanta.

Big News:

As many as 23 companies will declare their results for September quarter which include names like Ambuja Cements, RIL, L&T Technology Services, and ICICI Lombard, etc. among others.

RIL: PAT likely to grow by 12% YoY

Ambuja Cements: PAT likely to grow by 61% YoY

(All estimates are from Motilal Oswal)

Technical View:

The Nifty50 made a strong bullish candle on the daily charts

It took support near its 5-Days EMA and then bounced back. It has been acting as crucial support for the last 4 trading sessions which is a positive sign

Three levels to watch include – 11439, 11599, 11695-11700

Max Call OI: 12000, 11500

Max Put OI: 11000, 11400

For time being traders are advised to create fresh long positions in index with a stop loss below 11,430 on closing basis and look for initial targets placed around 11,800, suggest experts,.

The immediate resistance would be placed around 11700 levels, but some experts feel that there is a possibility that Nifty could hit new highs in this calendar year.

Technical Recommendations:

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

LIC Housing Finance: Buy| CMP: Rs 381| Target: Rs. 415|Stop Loss: Rs 355 | Upside 9%

Just Dial: Buy| CMP: Rs 605 | Target: Rs 645 |Stop Loss: Rs 570 | Upside 6%

Blue Star: Buy| CMP: Rs 827 | Target: Rs 915 |Stop Loss: Rs 760 | Upside +10.64%

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 Oct 18, 2019 07:17 am
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