Moneycontrol
Get App
you are here: HomeNewsPodcast
Last Updated : Mar 28, 2019 08:57 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Strength in Nifty possible only if index closes above 11,550

In the next trading session if Nifty closes below 11,400 then selling pressure may get further accentuated in the new series.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Indian market took a U-turn in the second half of the trading session on Wednesday. The S&P BSE Sensex fell by about 100 points while Nifty failed to hold on to 11500 levels ahead of F&O expiry on Thursday.

Indian markets witnessed profit taking at higher levels which suggest that for bulls to take control, Nifty50 has to close above 11550 levels convincingly.

Close

The final tally – the S&P BSE Sensex closed 100 points lower at 38,132 while the Nifty50 closed 38 points down at 11,445.

Bank Nifty scaled a new peak today led by heavy gains in Yes Bank, IndusInd Bank, IDFC First and RBL Bank. Yes Bank was the top Sensex gainer, up nearly 6 percent, followed by 5 percent rally seen in IndusInd bank, and nearly 2 percent gain seen in State Bank of India.

In terms of technical, Nifty50 closed near its 5-days exponential moving average (EMA) which is a good sign because this short term moving average has been acting as crucial support for the index since 19 February.

The rupee weakened marginally by 2 paise to close at 68.88 against the US dollar Wednesday amid strengthening of the American currency and robust selling in domestic equities.

On the institutional front, FIIs were net buyers in Indian equity markets for Rs 1481 crore while DIIs were also net buyers to the tune of Rs 134 crore, provisional data showed.

However, fears of global economic slowdown will still haunt D-Street and cap upside in the market. Global developments and movement of crude oil prices and currency would dictate the near term trend for the markets.

Big News:

Nearly 70 percent of India’s top 500 companies on the BSE gave negative returns and out of those as many as 21 companies eroded more than 50 percent of investor’s wealth in FY19.

Stocks which fell 50-70 percent in the S&P BSE 500 index include names like Shankara Building, Reliance Communications, PC Jeweller, DHFL, Rain Industries, Infibeam Avenues, Reliance Power, Jet Airways etc. among others.

The next big question is what investors should do now? If you own one of the stocks in the list below then analysts’ advise caution and not to mistake it from ‘catching a falling knife’, because some of the stocks have fallen for some fundamental reason.

If you are holding stocks mentioned in the list then a proper risk assessment is required as you step into FY20. Investors should first analyse detailed reports and financial background of their portfolio.

If they are stuck with stocks that are beaten down by 50 or more percent then realize and look into the balance sheet of the company along with the order book and margins of the companies and their ongoing growth in the coming quarterly results, suggest experts.

Technical View:

Nifty formed a bearish candle on daily charts ahead of F&O expiry

In the next trading session if Nifty closes below 11,400 then selling pressure may get further accentuated in the new series.

Strength in Nifty can be expected only on a close above 11,550 levels which shall then pave the way for a test of lifetime highs placed around 11,760 levels.

Three levels: 11413, 11546, 11600

Max Call OI: 11600, 11500

Max Put OI: 11000, 11400

Stocks in news:

Private sector Axis Bank on Wednesday said it will consider raising funds in Indian as well as foreign currency by issuing debt instruments at its two-day board meeting beginning April 25.

Public sector Oriental Bank of Commerce (OBC) on Wednesday said it has allotted 13.89 crore equity shares to the government following capital infusion of Rs 1,186 crore into the bank.

The board of directors of PFC approved the market borrowing program of Rs 81,000 crore under different debt segments in one or more tranches/series for the next fiscal, it said in a statement.

Technical Recommendations:

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

Gruh Finance: Buy| CMP: Rs 269.05 | Target: Rs 290|Stop Loss: Rs 256.40|Return 8%

IGL: Buy| CMP: Rs 305.65 | Target: Rs 324|Stop Loss: Rs 296|Return 6%

RBL Bank: Buy| CMP: Rs 668.50 | Target: Rs 722|Stop Loss: Rs 644|Return 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.

Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.

First Published on Mar 28, 2019 07:08 am
Sections
Follow us on