Nifty appears to be taking support around its 100-day simple moving average (10,795) which in the past acted as a resistance point.
It was a volatile day of trade for D-Street. The Nifty bounced back after taking support at its 100-days moving average to close roughly at the same level where it opened.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 86 points to close at 36,195 while the Nifty50 ended 18 points higher and closed just a shade below 10,950.
The star of the day was Yes Bank which rose a little over 9% after the board declared Ravneet Gill as MD & CEO effective March 1, 2019.
It looks like upside for Indian market remain capped as we head towards Interim Budget. Earnings have not been bad but they have also failed to provide a breakout and there's no clarity on the global front in terms of trade war.
Mid & small cap underperformed as mixed quarter earnings dragged investor’s focus from riskier portfolios. It looks like we would close the week in a flat note or with a slight negative bias.
The Indian rupee rose by 26 paise to close at 71.07 against the US dollar as softer crude prices and gains in domestic equities bolstered forex market sentiments.
On the institutional front, FPIs were net sellers in Indian markets for Rs 94 crore while the DIIs were net buyers to the tune of Rs 389 crore, according to provisional data.
Big News:
On the earnings front, as many as 47 companies on the BSE will be reporting their results for the quarter ended December which include names like Maruti Suzuki, L&T, M&M Financial Services, and DHFL among others.
Maruti Suzuki: PAT likely to grow by 5.9% YoY to Rs 1692 crore
L&T: PAT likely to grow by 19% YoY to Rs 1795 crore
M&M Financial Services: PAT likely to grow by 33% YoY to Rs 371 crore
(All estimates are from Motilal Oswal)
Technical View:
Nifty formed a Doji kind of candle on daily charts
Interestingly, Nifty appears to be taking support around its 100-day simple moving average (10,795) which in the past acted as a resistance point.
In the near-term 10,790 appears to be a critical support and upside seems to be capped around 10950 levels.
Three levels: 10798, 10866, 10950
Max Call OI: 11000, 10900
Max Put OI: 10800, 10700
Technical Recommendations:
We spoke to IIFL and here’s what they have to recommend:
Reliance Industries: Buy| Target: Rs 1330| Stop Loss: Rs 1195| Returns 7%
Dr Reddy’s Laboratories: Buy| Target: Rs 2822| Stop Loss: Rs 2621| Returns 5%
ACC January Futures: Sell| Target: Rs 1336| Stop Loss: Rs 1462| Returns 5%
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
