Most experts are of the view that we are knocking on the door of record high which could well come in if not in July then in August series as long as the index trades above 11,080.
What a day for India markets! The S&P BSE Sensex ended at a fresh closing record high while Nifty reclaimed its crucial resistance level of 11,080 on Monday.
Trust vote victory for BJP lend a positive signal to markets and has also brought alliance woes to the fore, also cut in GST rates on over 50 items fuelled rally in consumption and capital goods stocks.
Nifty is just 100-point away from hitting a record high but the rally is not broad-based.
In fact in Monday’s trading session when Sensex hit a record high, more than 300 stocks hit a fresh 52-week low which not a welcome sign for the bulls.
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Most experts are of the view that we are knocking on the door of record high which could well come in if not in July then in August series as long as the index trades above 11,080.
Rupee and crude are stable so that should comfort the bulls and if corporate earnings also come in line or better than estimates then surely we are looking at record highs on the index.
BSE, NSE put in place measure for enhanced monitoring of companies. Under the new criteria, securities having a net worth of less than or equal to Rs 10 crore and net fixed assets of less than or equal to Rs 25 crore are eligible for inclusion under the GSM framework.
Big News:
The big news will come from the earnings front.
As many as 40 companies are scheduled to report their results today which include names like Asian Paints, Hexaware Technologies, Info Edge, Radico Khaitan, Symphony, Rane Brake etc. among others.
Asian Paints: Net profit is likely to grow by 32 percent YoY to Rs 582 crore
Hexaware Technologies: Net Profit likely to grow by 22 percent YoY to Rs 149 crore
(All the above estimates are from Motilal Oswal)
Technical View:
Nifty formed a bullish candle on the daily candlestick charts on Monday
The index surpassed immediate hurdle of 11,080 and given a highest daily close since January 29.
Now the index is less than 100 points away from record high and to touch that highest ever point, it has to hold decisively the next hurdle of 11,100
Traders are advised to go for fresh long positions with a stop below 11,000 on closing basis and look for bigger targets
Three levels: 11000, 11100, 11171
Max Call OI: 11,100, 11,200
Max Put OI: 11000, 10900
Technical Recommendations:
We spoke to HDFC Securities and here’s what they have to recommend:
Sterlite Technologies: Buy| LTP: Rs 343| Target: Rs 370 | Stop-Loss: Rs 325 | Return 8%
ICICI Bank: Buy| LTP: Rs 276| Target: Rs 300 | Stop-Loss: Rs 260 | Return 9%
Suven LifeSciences: Buy| LTP: Rs 231| Target: Rs 255 | Stop-Loss: Rs 218 | Return 10%
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