Nifty50 is likely to take support near 10,000 levels on March 12 tracking muted trends seen in global markets.
Global shares crumbled on Thursday after US President Donald Trump said the United States will suspend all travel from Europe as he unveiled measures to contain the coronavirus epidemic that has extracted a heavy human and economic toll worldwide, said a Reuters report.
US S&P500 futures fell more than 3 percent, a day after the S&P 500 lost 4.89 percent, putting the index in a bear market territory, defined as a 20 percent fall from a recent top.
Trends on SGX Nifty indicate a negative opening for the index in India, down 466 points. The Nifty futures were trading lower at 9,950 on the Singaporean Exchange around 08:15 hours IST.
Indian market closed with a positive bias on March 11, after manic Monday giving, some hopes to the bulls. The S&P BSE Sensex rallied more than 60 points while the Nifty50 held on to 10,450.
Let’s look at the final tally on D-Street on March 11 – the S&P BSE Sensex rose 62 points to 35,697 while the Nifty50 closed with a gain of 7 points to 10,458.
Sectorally, the rally was seen in energy, telecom, finance, capital goods, FMCG, and banking stocks while profit-taking was seen in oil & gas, realty, public sector, and IT.
The rupee recovered 56 paise to settle at 73.61 (provisional) against the US dollar on Wednesday amid positive domestic equities and weakening of the American dollar in the overseas market.
On the institutional front, FPIs were net sellers in Indian equity markets for Rs 3515 cr while the DIIs were net buyers to the tune of Rs 2835 cr, provisional data showed.
Technical View:
Nifty formed a bullish candle on the daily charts.
Nifty respected Monday’s low of 10,294 levels which is a positive sign.
In case Nifty manages to trade above 10,550 levels consistently in next trading session, then eventually in the next couple of days, it can aim to test the bearish gap, registered on March 9, present in the zone of 10,751 – 10,827 levels.
If Nifty breaches 1,0295 levels, then it can head towards its critical supports placed in the zone of 10,100 – 9,850 levels, suggest experts.
Traders can avoid directional bets but investors are advised to nibble into selective stocks to build a long term portfolio, they say.
Three levels: 10,294, 10545, 10800
Max Call OI: 12000, 11500
Max Put OI: 10000, 10500
Stocks in the news:
The State Bank of India (SBI) on March 11 cut the interest rate on all savings bank accounts to a flat 3 percent.
A deal with some bondholders of Yes Bank who have opposed a state-led rescue is being discussed, the bank's administrator said on March 11, a move that could clear the way for a restructuring of the troubled lender.
The government has received part payment of about Rs 25,900 crore from telecom operators towards statutory dues and has again directed telcos to make full payments, Parliament was informed on March 11.
Technical Recommendations:
We spoke to Bonanza Portfolio and here’s what they have to recommend:
IndiaMart InterMesh: BUY| CMP: Rs.2511 | Target: Rs 2745| Stop Loss: Rs.2380| Upside 9%
City Union Bank: Sell| CMP: Rs.203 | Target: Rs 186.20| Stop Loss: Rs.211.50| Downside 8%
BEML: Sell| CMP: Rs.630| Target: Rs 585 | Stop Loss: Rs.657| Downside 7%
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