As we head towards the expiry, volatility cannot be ruled out, suggest experts and investors should use rallies to exit long positions. The rise that we have seen from the lows of 10585 is a welcome move but this is still a sell on rallies market.
Well, one thing is for sure that there was no Monday blues on D-Street. It was a powerful day for the bulls as they pushed benchmark indices above crucial resistance levels towards the close of the trade on Monday.
Approval of GST council to lower the tax rate on under construction real estate project added to the positive sentiment on D-Street. IT, banking and auto were the top contributors from the sectoral front while the broader indices managed to end marginally higher.
The final tally – the S&P BSE Sensex closed 341 points higher at 36,213 while the Nifty50 ended at 10880, up 88 points on Monday. The big news is that with both Sensex and Nifty have turned positive for the year 2019 after yesterday's rally.
As we head towards the expiry, volatility cannot be ruled out, suggest experts and investors should use rallies to exit long positions. The rise that we have seen from the lows of 10585 is a welcome move but this is still a sell on rallies market.
The Indian rupee on Monday rose by 17 paise to close at 70.97 against the US dollar in line with most Asian currencies amid hopes that the US and China will soon reach an agreement to settle their trade tariff issues.
On the institutional front, FPI were net buyers in Indian markets for Rs 2134 crore while DIIs were net sellers to the tune of Rs 1746 crore, provisional data showed.
Big News:
Well, from a technical perspective Nifty reclaimed its long term moving average (200-DMA) placed at 10861 which is a welcome sign for the bulls
Nifty after forming a double bottom pattern at 10585 on February 19 is poised to hit higher targets towards 10900-10950
However, we may see some resistance around 11000
Remember, till now both Supertrend and MACD have not given a bullish crossover but the way Nifty is gaining ground it is just a matter of time
Nifty short term moving average is placed at 10824
Not just Nifty but as many as 123 stocks on the NSE are trading above their 200-DMA which include names like 3M India, Nestle India, Bajaj Finserv, Britannia Industries, Bajaj Auto, Dr Reddy’s, HDFC Bank, Asian Paints, Divis Laboratories etc. among others.
Nifty formed a bullish candle on Monday for the fourth consecutive day in a row
Three levels to watch: 10788, 10887, 10950
Max Call OI: 11000, 11100
Max Put OI: 10700, 10800
Stocks in news:
Drug firm Lupin Monday said it has received approval from the US health regulator to market Methylprednisolone tablets used for treatment of inflammation in many conditions.
Travel services provider Thomas Cook India Group Monday said it has acquired 51 percent stake in imaging solutions and services firm Digiphoto Entertainment Imaging (DEI), at an enterprise value of $40.6 million (around Rs 289 crore).
GE T&D India on Monday said it has bagged a Rs 162 crore order from Power Grid Corporation to set up a high-voltage substation in Bhuj for evacuating 2,500 MW of wind power.
Technical Recommendations:
We spoke to HDFC Securities and here’s what they have to recommend:
HCL Technologies: Buy| LTP: Rs 1083.50| Target: Rs. 1190| Stop-loss: Rs 1026 | Upside 10%
SRF: Buy| LTP: Rs 2243| Target: Rs 2445| Stop-Loss: Rs 2155| Upside 10%
Torrent Pharma: Buy| LTP: Rs 1812|Target: Rs 1962 |Stop-Loss: Rs 1710| Upside 8%
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