"Nifty Bank closed lower at 24129.50 down 381 points ahead of RBI policy due later today around 2.30 pm. It opened with positive note but failed to close above its short term moving average of 20 EMA i.e. 24465 marks which is suggesting downfall to continue in near term," says Rajesh Agarwal of AUM Capital.
By Rajesh Agarwal
AUM Capital
Benchmarks traded on a volatile note and ended in red with cut of more than one percent taking cues from their key global counterparts that slipped on the back of increased fears of a full-scale global trade war. Selling during the second half pulled the markets lower with Nifty slipping by 125 points, while Sensex managed to hold 33,000 mark. The market breadth was in favour of declines with 3 stocks advancing against four declining ones.
Investors are also awaiting decision on monetary policy by Reserve Bank of India (RBI). The central bank is expected to keep monetary policy steady at its April meeting but shift to a hawkish stance by the end of this year and raise interest rates early in 2019 as inflation pressures build.
Technical Outlook
Nifty
Nifty snapped two day winning streak amid US-China trade worries. It opened higher but failed to hold gains and closed lower at 10128.40 Down 1.14 percent. It has formed 'Bearish Engulfing' pattern around supply zone indicating continuation of previous down move. Nifty failed to cross 'Upper Band' of Falling Channel i.e. 10260 levels decisively and reverted back to the channel. Now it has to close above 10260 levels for fresh up-move. We are expecting the Index to consolidate within a range.
Bank Nifty
Nifty Bank closed lower at 24129.50 down 381 points ahead of RBI policy due later today around 2.30 pm. It opened with positive note but failed to close above its short term moving average of 20 EMA i.e. 24465 marks which is suggesting downfall to continue in near term. Any significant breach below 24000 marks might drag Nifty Bank further lower.
Furthermore, on hourly scale, Index took hurdle around 50 percent Retracement level. We are expecting Index to consolidate within a range in near term.
Below are the top 5 stocks which can give up to 9% return in the near term:
Rural Electrification Corporation | Rating: Buy | Target: Rs 134, stop loss: Rs 124 | Return: 5%
Balrampur Chini Mills | Rating: Buy | Target: Rs 85, stop loss: Rs 74 | Return: 9%
Tata Steel | Rating: Sell | Target: Rs 542, stop loss: Rs 575 | Return: 3%
Dewan Housing Finance Corporation | Rating: Sell | Target: Rs 512, stop loss: Rs 528 | Return: 1%
Apollo Hospitals Enterprise | Rating: Sell | Target: Rs 1034, stop loss: Rs 1096 | Return: 3%
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