In forthcoming sessions, if Nifty50 doesn’t stabilise around its 200-Day EMA of 10,785 levels then traders investors should prepare themselves to see the index heading towards 10,557 levels.
A weak day for Indian markets. The S&P BSE Sensex breached its support placed at 36,000 while Nifty50 slipped below 10,900 but found support above 10,850 levels.
Technically speaking, the Nifty50 is now trading below crucial short-term moving averages. The next crucial support is placed at its 200-SMA placed at 10,777.
A breach of which could see Nifty50 heading towards 10,700 levels and worse 10,557.
In forthcoming sessions, if Nifty50 doesn’t stabilise around its 200-Day EMA of 10,785 levels then traders investors should prepare themselves to see the index heading towards 10,557 levels.
related news
On the upsides, bulls will able to revive their chances of coming back provided they manage a close above psychologically important level of 11,000. Till then bears are likely to remain in control.
Big News:
Fears of a liquidity crunch following the IL&FS crisis hit the mutual fund industry in September.
Cash plans or liquid funds were the worst hit.
According to data from CAMS, a mutual fund registrar which covers 85 percent of the industry flows, cash plans or liquid funds saw outflows worth a whopping Rs 69,694 crore.
Not only cash plans all categories in the debt segment also registered outflows, barring fixed maturity plans.
MF experts said industry faced huge redemption pressure in September after liquidity in the banking system tightened.
The 43-player mutual fund industry manages Rs 13.73 lakh crore of fixed income assets of which Rs 2,700 crore of bonds and commercial papers were issued by IL&FS and its subsidiaries, according to mutual fund’s monthly portfolio disclosures in August. September data is yet to be released.
Technical Factors:
Nifty formed a bearish candle on the daily charts
Three levels to watch: 10,777, 10,800, 11000
Max Call OI: 11500, 11200
Max Put OI: 10500, 10800
Technical Recommendations:
We spoke to Bonanza Portfolio and here’s what they have to recommend:
Motherson Sumi: Buy| CMP: Rs.242.85 | Target Rs 267| Stop Loss Rs.233| Return 10%
Adani Ports Ltd: Buy| CMP: Rs. 329.75 | Target Rs 357| Stop Loss Rs.316| Return 8%
Bata India Ltd: Sell| CMP: Rs. 915.30| Target Rs 845| Stop Loss Rs.957| Return 7.65%
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.