A morning walk down Dalal Street | Move above resistance of 10780 indicates bullish bias but concerns remain

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A morning walk down Dalal Street | Move above resistance of 10780 indicates bullish bias but concerns remain

What a day for Indian markets? Sensex jumped by over 450 points to reclaim Mount 36K while Nifty saw a rally of over 100 points to close above 10850.

From expiry to expiry perspective, Nifty rose more than 7 percent to post its highest single series gain since March 2016.

Nifty rollovers stand at 71 percent which is higher than the 3-month average of 68 percent, but lower than November series rollover of 75 percent.

Well, after around 18 trading sessions of a range bound move, the market has finally broken on the upside.

The Index has managed to move past the resistance band of around 10780 and also its 200-DMA, onto the range of 10850-10950.

This certainly indicates a bullish bias; however, the broader markets are a cause of concern, highlights experts.

Rupee soars 77 paise, breaches 70/USD mark after 3 months.

“The gains were mainly driven by few of the heavyweight counters and the broad base move was missing. In fact, if we meticulously watch the midcap index then there are signs of weakness in the prices as well in its indicator and hence one needs to be cautious on stock picking as we have seen many false moves in the last few sessions,” GEPL Capital said in a report.

“On the lower side, as far as levels are concerned Wednesday’s gap around 10695-10700 will now act an immediate support, with intermediate supports placed around the earlier bar of 10450 levels,” it said.

Technical View:

Nifty formed a bullish candle on the expiry day

The index climbed crucial resistance levels which led to the breakout thanks to strong global cues from the US Fed which led to short coverings.

Three levels to watch: 10782, 10900, 11000

Max Call OI: 11000, 11500

Max Put OI: 10000, 10500

Stocks in news:

The government is planning to sell at least 3.25 percent stake in power producer NTPC in December, which will help garner Rs 3,800 crore to the exchequer. The Cabinet had earlier approved disinvestment of 10 percent stake in NTPC, of which 6.75 percent was sold in August last year.

India’s state-run Mangalore Refinery and Petrochemicals Ltd has signed its first term deal with Iraq as it seeks to diversify its crude imports, said a Reuters report quoting two sources privy to the matter.

The Airports Authority of India served a notice to Ajay Singh-controlled budget carrier SpiceJet to pay up to Rs 20 crore by November 30 to partially clear its dues, PTI reported quoting an AAI source.

Technical Recommendations:

We spoke to Way2Wealth Brokers Ltd and here’s what they have to recommend:

Dr Reddy’s Laboratories Ltd: Buy around Rs 2650 – 2625| LTP: Rs 2652| Target: Rs 2900| Stop Loss: Rs 2520| Return 9%

Berger Paints: Buy above Rs 324| LTP: Rs 319| Target: Rs 350| Stop Loss: Rs 310| Return 10%

Century Textiles Ltd: Sell below Rs 889| LTP: Rs 894| Target: Rs 840 – 810| Stop Loss: Rs 927| Return 9.4%

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.

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

2018-12-06 06:04:08

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

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