Taking reference from the past – bulls were able to take control of D-Street in five of the last 10 years in the month of January.
Well, there were no Monday blues for sure but the way market witnessed selling pressure at higher levels suggest that we might not be out of the woods.
The domestic market gained on back of positive global cues led by dovish comments from the Fed and strong US jobs data. Initially, the gap-up opening pushed the index above 10800 in morning trade but towards the close, we saw profit taking at higher levels.
The final tally on D-Street – Sensex rose 155 points to close at 35,850. The index did reclaim Mount 36K but failed to hold on to that level. The Nifty50 index ended 44 points higher at 10,771.
Sectorally, consumer durables, telecom and realty sectors rose over 1% each while selling was seen in healthcare, metal, and capital goods index.
Sensex gainers: Tata Motors, Acix Bank, Bharti Infratel up 2-3%
Sensex losers: Dr. Reddy’s, Bajaj Auto, Indiabulls Housing Finance fell 1-4% respectively
The rupee closed 4 paise higher at 69.68 level compared to the previous close of 69.72. The rupee clocked a 9.23 percent fall during 2018.
On the institutional front, FPIs were net buyers in India market of Rs 736 crore while DIIs were net sellers in Indian markets to the tune of Rs 141 crore, according to provisional data.
Experts feel that the roller coaster ride would continue for some time and the beginning of earnings season would further accentuate the erratic swings.
Big News:
After a strong rally in December which helped the Nifty to record gains of over 3 percent – the big questions is – will the rally continue?
Taking reference from the past – bulls were able to take control of D-Street in five of the last 10 years in the month of January.
Bulls pushed the S&P BSE Sensex higher by 10.8 percent in January 2012, followed by 6.3 percent monthly return seen in 2018, and 6.09 percent gain recorded in 2015.
Meanwhile, Sensex was lower by 10.8 percent in January 2011, followed by 6.8 percent drop seen in 2010, and about 5 percent fall in January 2016.
Technical View:
Technically, Nifty forms from 50-EMA but failed to close above 10800 levels. The index has been forming higher swings lows but at the same time finding multiple hurdles at 10925-10985 zones.
For the bulls to regain control, Nifty has to hold above 10750-10777 zones to witness an up move towards 10850 then 10929. On the downside, support exists at 10650 then 10600 levels.
Nifty has been currently hovering within 10,600-10,900 and either side decisive break would trigger the next directional move.
Three levels: 10750, 10835-10850, 10930
Max Call OI: 11000, 11500
Max Put OI: 10500, 10000
Technical Recommendations:
We spoke to HDFC Securities and here’s what they have to recommend:
Axis Bank: Buy| LTP: Rs 638| Target: Rs 704| Stop-Loss: Rs 603 | Return 10%
Action Construction Company: Buy| LTP: Rs 99| Target: Rs 113| Stop-Loss: Rs 90 | Return 14%
Coromandel International : Buy| LTP: Rs 460| Target: Rs 535| Stop-Loss: Rs 420| Return 16%
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