Moneycontrol
Last Updated : Dec 04, 2018 07:11 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty to find support around 10,750, stay cautious while picking stocks

There is some caution ahead of the outcome of the RBI's monetary policy review meet which triggered profit-taking as the session progressed, suggest experts.

Kshitij Anand @kshanand
 
 
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A day of consolidation for Indian markets. The S&P BSE Sensex which rallied by over 200 points in the opening trade pared gains and closed 46 points higher while the Nifty50 ended just 7 points up to close at 10,883 on Tuesday.

Markets settled almost flat for the second consecutive session. A rise in crude oil prices due to trade truce and a resultant strengthening of the dollar could have impacted the market sentiment. Additionally, investors are likely to have taken note of lower GDP print for the September quarter.

Also, there is some caution ahead of the outcome of the RBI's monetary policy review meet which triggered profit-taking as the session progressed, suggest experts.

Sectorally, Consumption, IT, Metals and PSU banks led the gains, while pharmaceuticals were the big losers. The Nifty Pharma slipped over 2 percent.

Investors are advised to remain cautious while picking stocks, and in case of any decline, Nifty would find support around 10,750 and the next major hurdle is placed at 11,100.

Foreign investors poured Rs 293 crore in Indian markets while DIIs pulled out Rs 806 crore on Monday, according to provisional data.

Rupee breaks 4-day winning run, drops 88 paise at 70.46 per dollar as crude rebounds.

Big News:

Some good news for investors as SEBI extends the deadline for the transfer of shares in demat to April 1, 2019

The Securities and Exchange Board of India (SEBI), has given investors more time to convert shares and other securities held in physical certificate format into demat. The deadline has been revised to April 1, 2019, from December 5, 2018.

SEBI has made it mandatory to hold the shares and securities in dematerialised form with a depository for investors keen to in trade them after December 5.

Investors were advised to complete the KYC process before the due date. This led investors to rush to the registrar and transfer agents for requisite paperwork.

Technical View:

Nifty formed a bearish candle as the closing level was lower than the opening level

The Nifty continued to face resistance around 10,900 levels but failed to hold the same.

Once it closes above 10900-10930, it would open doors for 11,000, suggest experts

Three levels: 10845, 10930, 11000

Max Call OI: 11000, 10900, 11100

Max Put OI: 10500, 11000

Stocks in news:

After the resignations of three board members, Yes Bank has appointed former Life Insurance Corporation of India (LIC) Chairman TS Vijayan as an additional independent director for five years.

Sun Pharmaceutical Industries needs more clarity from market regulator Securities and Exchange Board of India (Sebi) about a whistle-blower complaint against the company, said Dilip Shanghvi, founder and MD, on Monday. The stock closed 7.5% lower on Monday.

The country's largest iron ore producer NMDC has slashed prices of high-grade iron ore (lumps) by Rs 300 to Rs 3,550 per tonne for the current month.

Technical Recommendations:

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

Kotak Mahindra Bank: Buy| LTP: Rs 1226| Target: Rs 1325| Stop-Loss: Rs 1160 |Return 8%

Hero MotoCorp Ltd: Buy| LTP: Rs 3040| Target: Rs 3250| Stop-Loss: Rs 2910| Return 7%

SBI: Buy| LTP: Rs 287| Target: Rs 308 | Stop-Loss: Rs 273| Return 7%

Disclaimer: The views and investment tips expressed by investment expert 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.
First Published on Dec 4, 2018 07:11 am
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