Overall index has got stuck in a broader trading range of 10,700 to 10,985 zones and requires a decisive range breakout for next leg of rally, experts said.
A weak day of trade for D-Street as benchmark indices slipped below their crucial support levels in the last 1 hour of trading session weighed down by muted results from ITC for December quarter, global growth and trade war concerns.
Let’s look at the final tally – the S&P BSE Sensex plunged 336 points while the Nifty50 closed below 10900 levels at 10,831. The index took support near 200-DMA placed around 10830.
FMCG sector remained the worst performer today with ITC losing more than 4% in trade after the company reported a decline in margins in Q3 FY19 numbers.
Nifty is consolidating in a narrow range since the past week. The immediate range for the market is seen at 10775-11000. A breakout above 11000 is expected to infuse further positivity.
Markets likely to remain volatile in short-term over increasing concerns w.r.t. global economic slowdown. Volatility in crude oil price & INR (vs USD) would keep the market participants on edge, along with December quarter earnings.
The Indian rupee on Wednesday snapped its three-day losing streak and settled higher by 11 paise at 71.33 against the US dollar on increased selling of the American currency by exporters and banks.
On the institutional front, FPI were net sellers in Indian markets of Rs 775 crore while the DIIs were net buyers to the tune of Rs 583 crore, according to provisional data.
Big News:
On the earnings front, 69 companies will report results for the quarter ended December later today which include names like Biocon, Yes Bank, UltraTech Cements, Colgate Palmolive, PNB Housing Finance etc. among others.
Yes Bank: PAT likely to grow by 15% YoY to Rs 1245 crore
Biocon: PAT likely to grow by 75% YoY to Rs 161 crore
UltraTech Cement: PAT likely to grow by 66% YoY to Rs 530 crore
(All estimates are from Motilal Oswal)
Technical View:
Nifty formed a bearish candle on the daily charts
Overall index has got stuck in a broader trading range of 10,700 to 10,985 zones and requires a decisive range breakout for next leg of rally, experts said.
Three levels to watch: 10811, 10944, 11000
Max Call OI: 11000, 10900
Max Put OI: 10500, 10800
Technical Recommendations:
We spoke to Bonanza Portfolio and here’s what they have to recommend:
Dishman Carbogen: Buy| LTP: Rs.219.25 | Target: Rs 240| Stop Loss: Rs.212| Return 9.50%
Tata Steel: BUY| LTP: Rs.464.60 | Target Rs 505| Stop Loss: Rs.445| Return 8.60%
Avenue Supermarts: Buy| LTP: Rs.1397.30 | Target: Rs 1470-1500| Stop Loss: Rs.1349| Return 7%
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