A morning walk down Dalal Street | Momentum may stall, corrective swing towards 11,230 likely

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A morning walk down Dalal Street | Momentum may stall, corrective swing towards 11,230 likely

Nifty registered a sixth straight session of gains. Bulls maintained their grip despite some profit booking at higher levels. The momentum will weaken further in the case, bulls fail to keep Nifty50 afloat above 11413-11400 levels this week.

The S&P BSE Sensex held on to its support at 38000 while Nifty failed to close above 11500 levels.

The final tally – the S&P BSE Sensex closed 70 points higher at 38,095 while the Nifty50 closed 35 points up at 11,462. The S&P BSE Mid-cap index closed 0.2 percent lower while the S&P BSE Small-cap index fell 0.13 percent.

It looks like, investors are awaiting the outcome of the US Fed policy meeting due later in the week to get more cues about global market movement as well as US-China trade talks.

In terms of individual stock, as many as 58 stocks hit their fresh 52-week highs which include names like PVR, HDFC Bank, UPL. Jubilant LifeSciences, ICICI Bank, IDFC First Bank, Axis Bank, JustDial, and Karnataka Bank among others.

Strong FII inflows along with a strong rupee have led to positive sentiments in Indian markets. This rally is also supported by a revival in corporate earnings, reasonable valuations and cash sitting on side lines waiting for the elections to get over, suggest experts.

The rupee appreciated 65 paise to 68.45 against the US dollar in intra-day trade on Monday is driven by weakening greenback in overseas markets and sustained foreign inflows.

On the institutional front, FPI were net buyers in Indian markets for Rs 1822 crore while the DIIs were net sellers to the tune of Rs 1268 crore, provisional data showed.

Technical View:

Nifty formed Long Legged Doji kind of pattern on charts

The current momentum may stall paving the way for either sideways move or a corrective swing towards 11,230 kinds of levels

Weakness in momentum will get confirmed on a close below 11,400 levels.

Three levels: 11412, 11530, 11600

Max Call OI: 11500, 11600

Max Put OI: 11000, 11300

Stocks in news:

Racing against time to meet the Supreme Court’s deadline, Reliance Communications (RCom) has paid Rs 458.77 crore of dues to Swedish telecom equipment maker Ericsson, according to sources.

Jet Airways Ltd said on Monday it has grounded four more planes and would delay paying interest on maturing debt in a fresh sign of deepening liquidity crisis engulfing the Indian carrier saddled with over $1 billion debt.

The country’s largest car maker Maruti Suzuki India (MSI) cut production by over 8 percent in February on account of subdued demand. The auto major produced a total of 1,48,959 units, including Super Carry LCV, across its factories last month, down 8.3 percent from 1,62,524 units produced in the year-ago period, the company said in a regulatory filing.

Technical Recommendations:

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

Punjab National Bank: Buy| LTP: Rs 86.54| Target: Rs 96| Stop-Loss: Rs 81| Return 11%

Indian Oil Corporation: Buy| LTP: Rs 163| Target: Rs185| Stop-Loss: Rs 150| Return 13%

Petronet LNG: Buy| LTP: Rs 244|Target: Rs 265 |Stop-Loss: Rs 231|Return 9%

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.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-03-20 01:48:49

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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