The Nifty is expected to remain rangebound till it holds the support of 10,825 levels, experts said, adding after this rangebound trade, there could be a possibility of index reclaiming 11,000 levels.
A muted day for D-Street. The S&P BSE Sensex wiped out most of the gains made in the previous session while Nifty50 slipped below 10,950 levels; however, it managed to hold on to 10900 levels on closing basis.
The final tally on D-Street – The S&P BSE Sensex fell 134 points to close at 36,444 while the Nifty50 ended 39 points down to close at 10,922 on Tuesday.
Healthcare, Consumer durables, and Realty were the best performing sectors gaining 0.9-1.2%. However, Metal was the biggest loser followed by Telecom and Auto.
The market is likely to trade in a range due to global headwinds in the form of uncertainty over the acceptance of the alternate plan for Brexit and global growth concerns.
Further, volatility in crude oil price & Rupee (vs USD) would keep the market participants on edge. But, no negative surprises on the earnings front has kept things steady for the bulls.
The next crucial resistance level to watch out is 11000 on the upside while supports are placed at 10884-10800 levels.
The rupee skidded by 16 paise Tuesday — its third straight session of loss — to close at 71.44 against the US dollar amid strengthening of the greenback and heavy selling in domestic equities.
On the institutional front, FPIs were net sellers in Indian markets by Rs 78 crore while DIIs were also net sellers to the tune of Rs 84 crore, according to provisional data.
Big News:
On the earnings front, as many as 48 companies will be reporting their results for December quarter later today which include names like ITC, United Spirits, InterGlobe Aviation, DB Corp, and Pidilite Industries.
ITC: PAT estimate: Rs 299.8 crore, down 6.9% YoY
United Spirits: PAT estimate: Rs 232.2 crore, down 57.6 percent YoY
InterGlobe Aviation: Loss of Rs 237.8 crore (made a profit in the corresponding quarter last year)
(All the estimates are from Motilal Oswal)
Technical View:
Nifty formed a Hanging Man kind of pattern on daily charts
The Nifty is expected to remain rangebound till it holds the support of 10,825 levels, experts said, adding after this rangebound trade, there could be a possibility of index reclaiming 11,000 levels.
Three levels: 10800, 10864, 11000
Max Call OI: 11000, 11200
Max Put OI: 10700, 10500
Technical Recommendations:
We spoke to Religare Broking Ltd and here’s what they have to recommend:
Dabur India: Buy| Target: Rs 445| Stop loss: Rs 414| Return 4.7 %
ITC: Buy | Target: Rs 302| Stop-Loss: Rs 284| Return 4.1 %
Siemens: Sell January Futures |Target: Rs 980 | Stop loss: Rs 1080| Return 6.2 %
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