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Last Updated : Dec 11, 2019 07:21 AM IST | Source: Moneycontrol.com

Early on D-Street | Selling pressure could increase if Nifty fails to hold 11,844

Intraday traders can look to short below 11850 levels for a target of 11790 with a stop above intraday high, experts suggest.

 
 
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Indian markets resumed their southward journey after falling by about 1 percent in the previous week. The S&P BSE Sensex was down by more than 200 points while the Nifty50 failed to hold on to 11900-11880 levels.

Banking stocks remained under pressure throughout the trading session after the State Bank of India (SBI) reported bad loan divergence of Rs 11,932 crore for the last financial year, the country's largest lender said in a notification to exchanges. The stock closed 1.04 percent lower at Rs 313.45.

Close

Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 247 points to 40,239 while the Nifty50 closed with losses of 80 points to 11,856.

Sectorally, the public sector, power, metal, and banking stocks remained under pressure.

Broader market underperformed – the S&P BSE Midcap index fell 1.1 percent while the S&P BSE Smallcap index closed with losses of 1.02 percent.

On the global front, investors would watch out for any updates on the US-China trade talks, and the outcome of the last policy meeting of the Federal Open Market Committee this year on December 11.

The rupee settled 12 paise higher at 70.92 against the US dollar on Tuesday amid softening crude oil prices and weakening of the greenback vis-a-vis major global currencies.

On the institutional front, FPIs were net sellers in Indian markets for Rs 366 cr while the DIIs were net buyers to the tune of Rs 338 cr, provisional data showed.

Technical View:

The index formed a bearish candle on daily charts

It closed below its crucial swing low of last week of 11,888 which has now opened room for further downside till 11740 (50-SMA)

Before slipping towards 11749, big support is placed near 11800 levels.

The index closed near its intraday low hence in case it fails to hold onto 11844 on Wednesday, chances of further selling pressure could increase.

For time being stability and upsides shall not be expected unless Nifty closes above 11953 levels.

Intraday traders can look to short below 11850 levels for a target of 11790 with a stop above intraday high, experts suggest.

Three levels to watch – 11749, 11844, 12081

Stocks in news:

UCO Bank has lowered its Marginal Cost of Funds Based Lending Rates (MCLR) by 10 basis points across tenors with effect from Tuesday.

Tata Motors on Tuesday reported a 15 percent decline in group's global wholesales at 89,671 units in November. The group had sold 1,04,964 units in the same month last year.

The board of Yes Bank December 10 said it is willing to favourably consider the $500 million offer of Citax Holdings and Citax Investment Group.

Technical Recommendations:

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

JB Chemicals & Pharmaceuticals: Buy| LTP: Rs 422| Target: Rs 480| Stop Loss: Rs 385| Upside 13%

Dr Reddy's Laboratories: Buy| LTP: Rs 2896| Target: Rs 3125| Stop Loss: Rs 2730| Upside 8%

Eris Lifesciences: Buy| LTP: Rs 475| Target: Rs 532| Stop Loss: Rs 435| 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 Dec 11, 2019 07:21 am
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