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Last Updated : Sep 09, 2019 07:39 AM IST | Source:

A morning walk down Dalal Street | Wait for a breakout, Nifty may inch towards 11,141

The index witnessed smart buying but analysts still feel that traders should wait for a breakout or a breakdown before initiating fresh positions.

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Todays L/H

Bulls failed to push the index in the green in the holiday-shortened week despite some strong measure introduced by the government to boost consumer demand and lift investor sentiment. But, weak GDP data for June quarter proved dampener.

The S&P BSE Sensex which failed to hold on to 37,000 closed 0.94 percent lower while the Nifty50 was down 0.70 percent for the week ended September 6.


The broader market closed in a mixed manner. The S&P BSE Smallcap index rose 0.48 percent while the S&P BSE Midcap index was down 0.76 percent in the same period.

As many as eight stocks in the S&P BSE 500 fell 10-16 percent for the week ended September 6 which include names like Indian Bank, Coffee Day, Canara Bank, Magma Fincorp, Reliance Communications, OBC, Centrum Capital, and MCX.

On the macro front, the country's foreign exchange reserves fell by $446 million to $428.604 billion in the week to August 30, mainly on account of a drop in foreign currency assets, RBI data showed on Friday.

The Indian rupee continued its winning momentum for a third session in a row on September 6, rising 12 paise to settle at 71.72 against the US dollar as signs of easing trade tensions between the US and China enthused investors.

On the institutional front, FPIs were net sellers in Indian markets for Rs 957 cr while the DIIs were net buyers to the tune of Rs 1207 cr, provisional data showed.

Big News:

The government on September 7 said it has constituted a high-level task force to identify infrastructure projects for Rs 100 lakh crore investment by 2024-25 as India aims to become a USD 5 trillion economy.

The task force, headed by the economic affairs secretary, will draw up a 'National Infrastructure Pipeline' of Rs 100 lakh crore, the finance ministry said in a statement.

The challenge is to step-up annual infrastructure investment so that lack of infrastructure does not become a binding constraint on the growth of the Indian economy, the ministry said.

Prime Minister Narendra Modi in his Independence Day speech had said that Rs 100 lakh crore would be invested on infrastructure over the next five years. These will include social and economic infrastructure projects.

Technical View:

Nifty back above 10900 levels, forms bullish candle on daily charts

The index also reclaimed two crucial short term moving averages i.e. 5-days exponential moving average (EMA), and 13-EMA. However, it witnessed some resistance near its 20-days EMA around 10,958.

The index witnessed smart buying but analysts still feel that traders should wait for a breakout or a breakdown before initiating fresh positions.

A break above 11,042 levels could fuel the rally towards 11,141 levels while a break below 10,800-10,746 could fuel further downside.

Three levels: 10867, 10957, 11000

Max Call OI: 11500, 11200

Max Put OI: 10800, 10600

Stocks in news:

Cafe chain operator Coffee Day Enterprises on September 7 announced appointment of IDFC Securities as an advisor to identify strategic options and advise it on refinancing of existing debt.

State-owned Canara Bank on September 6 invited bids to sell 30 per cent stake in its housing finance subsidiary Can Fin Homes Ltd (CFHL).

Tech Mahindra announced the expansion of its strategic collaboration with AT&T to accelerate AT&T’s IT network application, shared systems modernization and movement to the cloud.

Technical Recommendations:

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

Tata Steel: Buy| LTP: Rs 356.35| Target: Rs 388| Stop Loss: Rs 337| Upside 9%

Bharat Forge: Buy| LTP: Rs 394.95| Target: Rs 426| Stop Loss: Rs 375| Upside 8%

Disclaimer: The views and investment tips expressed by investment expert on are his own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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First Published on Sep 9, 2019 07:21 am
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