In the next trading session it becomes critical for Nifty to sustain above 10,925 levels. "Failure to do so shall trigger fresh bout of selling with targets close to 10,760 kind of levels.
India VIX moved up by 6.70 percent at 13.68 levels. VIX has gone to its highest levels in last 12 sessions amid political concern.
During the recent fall in the equity market, the fund house reduced exposure to mid-cap stocks in its Multicap Fund, but is now looking at selectively buying some of these stocks
Immediate support for the Nifty is seen around 10,800 and 10,600 levels, whereas 11,200 will act as stiff resistance, says Abhishek Mondal of Guiness Securities.
According to Pivot charts, the key support level for Nifty is placed at 10,949.57, followed by 10,891.13.
The Sensex closed higher by 196.19 points, or 0.54, to 36519.96, while the Nifty rose 71.10 points, or 0.65%, to 11008.00
Option band signifies an immediate trading range in between 10,929 to 11,080 zones, experts said.
“The Nifty has to sustain above 11,020 levels, to extend the rally towards 11,395. A breach of 10,900 on a closing basis would be sign of a bearish trend reversal,” says Vinay Rajani of HDFC Securities
Ajay Srivastava of Dimensions Corporate Financial Services said one should keep investing in bigger pharma companies as they will offer better returns going forward
Hemang Jani, Head - Advisory, Sharekhan, said any major declines should be used as an opportunity to get into quality names in the consumption and financials space
On a year-on-year basis, average AUM increased 19.8 percent (Rs 3.9 trillion) in June 2018
Call unwinding was seen at the strike price of 10,800, which shed 1.03 lakh contracts, followed by 10,700, which shed 0.42 lakh contracts and 10,500 which shed 0.35 lakh contracts.
Meaningful Call writing was seen at 11,000 followed by 11,100 while Put unwinding was seen at all the immediate strike price.
Thousands of midcaps are still down by 20-40 percent from their peak, and not to forget, ‘Bhangaar’ cap is down by about 50-90 percent which is a good sign, Vijay Kedia said.
The global investment bank in its base case scenario (with 50% probability) expects Sensex to trade at 36,000 by June 2019 which is under 16x one-year forward P/E, and below historical averages.
Gaurav Ratnaparkhi of Sharekhan said if the bulls manage to cross that region then one can look at significantly higher levels
Sukumar Rajah of Franklin Templeton Investment prefers companies in cyclical sectors, commodities and firms benefiting from the ease of doing business
The relative strength index (RSI) is trading near 66 levels, which indicates positive momentum and support for the bullish rally
Vikas Jain of Reliance Securities said the index will find support at its 20-day moving averages placed at 10,800 levels
Chandan Taparia of Motilal Oswal Securities said the Nifty has been making higher lows from last nine trading sessions and supports are gradually shifting higher.
The Nifty closed at 11,018.90 on Friday. According to Pivot charts, the key support level is placed at 10,988.7, followed by 10,958.5. If the index starts moving upwards, key resistance levels to watch out are 11,060.2 and 11,101.5.
Using spot prices as the underlying creates a lot of complexities in options pricing and investors generally gets confused with it. Let’s look at a simpler way to option prices i.e. futures as an underlying.
Mid and Small cap stocks usually have lower liquidity making re-accumulation of these stocks a time consuming task and so the recovery in the fortune of aggregate mid and small cap stocks would not be V-shaped rather it would be U shaped.
Experts reckon that stock-specific action is likely in the coming week as a lot of big corporate earnings (including those of nine Nifty stocks) are scheduled to be announced.
Sumit Bilgaiyan of Equity99 says next week will be crucial for the market as it will see plenty of stocks reporting their quarterly numbers.