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

Early on D-Street | Nifty likely to consolidate between 11,850-12,000

In case of an upward breakout above 12,000 levels will open doors for the index to hit record highs above 12,103.

A volatile day for Indian markets but bulls managed to take Sensex to record highs while Nifty50 had a touch-and-go moment with 12K.

The Nifty50 had a touch and go moment with 12,000 levels for the first time since June while the S&P BSE Sensex rallied to a fresh record high of 40,606.91 in intraday trade on Wednesday.

Close

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 221 points to a record closing high of 40,469 while the Nifty50 ended 48 points higher at record closing high of 11,966. It hit an intraday high of 12,002 and an intraday low of 11,850.

Positive commentary from the Finance Minister, a bounce-back in banking space, as well as some stable results from India Inc., helped the sentiment. Experts feel that the upside is intact and investors should use dips to accumulate stocks or create long positions.

The action was seen in the S&P BSE Realty index, followed by Bankex, and Metal index while profit-taking was seen in the Consumer Durables, Telecom, and Energy stocks.

On the institutional front, FPIs were net buyers in Indian markets for Rs 1011 cr while the DIIs were net sellers to the tune of Rs 1117 cr, provisional data showed.

Volume spike was seen in stocks like Cipla, Lupin, Godrej Consumer Products, Bosch, Titan Company, Exide Industries, Chola Finance, and Aurobindo Pharma.

Long Buildup – Lupin, Colgate Palmolive, Canara Bank

Short Buildup – Voltas, Titan, CESC, Bharti Infratel

Big News:

On the earnings front, as many as 148 companies on the BSE will declare their results for September quarter which include names like Aditya Birla Capital, Andhra Bank, City Union Bank, LT Foods, DLF, IPCA Laboratories, Max India, Trent, UCO Bank, UPL Ltd, VIP Industries, and Wockhardt etc. among others.

IPCA Lab: PAT likely to fall by over 3% YoY

UPL: PAT likely to grow by 65% YoY

Trent: PAT likely to fall by nearly 3% YoY

(All estimates are from Motilal Oswal)

Technical View:

Nifty forms a Bullish candle on daily charts

It took support near its 5-Days EMA at 11904 before bouncing back

For the time being market likely to consolidate in the zone between 12000 –11850 levels

In case of an upward breakout above 12000 levels will open doors for the index to hit record highs above 12103.

Whereas a breach of 11850 on a closing basis could take the Nifty towards 11740 - 700 levels.

For time being traders are advised to remain focused on stock-specific opportunities by taking a neutral stance on the index, suggest experts.

Three levels: 11850, 12002, 12103

Max Call OI: 12000, 11800

Max Put OI: 11600, 11500

Technical Recommendations:

We spoke to Bonanza Portfolio Ltd and here’s what they have to recommend:

L&T Finance Holdings: Buy| LTP: Rs.95.85| Target: Rs 104.50 |Stop Loss Rs.91|Return 9%

Tech Mahindra: Buy| LTP: Rs 771| Target: Rs 856|Stop Loss: Rs 725| Upside 11%

Heidelberg India Ltd: Buy| LTP: Rs.201.50| Target: Rs 217.50|Stop Loss Rs 193.50| Upside 8%

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.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Nov 7, 2019 07:16 am
Loading...
Sections
Follow us on
Available On