A breakout above 11856 will take the index high while a break below 11699 could fuel further selling pressure.
A volatile week for equity markets but bulls failed to take control of D-Street as bears pushed the index below a crucial support at 11750.
The Nifty index closed weekly session at 11,712.25 levels, down by about 0.4 percent on a weekly basis. Now, a breakout above 11856 will take the index high while a break below 11699 could fuel further selling pressure.
From the political space, fifth phase of Lok Sabha elections will be held on May 6 for 51 seats across seven states. In this phase, the least number of constituencies are going for polls as compared to other phases.
On the macro front, Nikkei Service PMI for the month of April 2019 will be out on May 6.
Crude oil prices cooled off from highs but are still up 35% so far in 2019.
In the last week the rupee climbed 80 paise to close at 69.22 per dollar. The Indian currency has recorded a second consecutive week of gains.
On the institutional front, FPIs were net sellers in Indian markets for Rs 400 crore while the DIIs were net buyers to the tune of Rs 57 crore, provisional data showed.
Given the US Fed’s status quo stance on the interest rates at least for this year, global liquidity will flow into emerging countries like India where they can capture growth at over 7 percent whereas the US is expected to grow at about 2.5 percent, suggest experts.
This will also lead to massive dollar inflows which can take the rupee to touch levels of Rs 65 – Rs 66 per dollar by this year end, they say.
Big News:
As many as 29 companies on the BSE are scheduled to report their results for March quarter later today which include names like Bharti Airtel, Godrej Agrovet, Gujarat Gas, ICICI Bank, Marico, and Wockhardt, etc. among others.
Bharti Airtel: Company likely to report a net loss of Rs 717 crore
ICICI Bank: PAT likely to grow by 112% YoY to Rs 2162 crore
Marico: PAT likely to grow by 22% YoY to Rs 224 crore
(All the estimates are from Motilal Oswal)
Technical View:
Nifty forms a Doji pattern on charts; bearish candle for the 3rd day in a row
The index took support at its 5-days EMA
This kind of sluggish and lacklustre price action is hinting at a dwindling momentum in the Nifty
A breakout above 11,856 is required to put bulls back in charge
A close below 11,635 in next session may enhance selling pressure
India VIX moved up by 4.35% at 23.98 levels. Higher VIX suggests that volatile swings could continue in the market ahead of Election polls and outcome.
Three levels: 11699, 11770, 11856
Max Call OI: 12000, 12500
Max Put OI: 11000, 11500
Stocks in news:
Federal Bank Saturday reported an over two-fold jump in net profit for the March quarter at Rs 381.51 crore on account of lower provisioning and higher interest income.
L&T Technology Services (LTTS) on May 3 has delivered its highest ever growth for FY19 in the March quarter driven by the growth in the electrification of vehicles, autonomous vehicles and over the top (OTT) systems.
Yes Bank on May 3 said the Reserve Bank of India has imposed a penalty of Rs 11.25 lakh on it for violating money transfer norms.
Technical Recommendations:
We spoke to 5nance.com and here’s what they have to recommend:
Biocon: Sell| Target: Rs 534| Stop-Loss: Rs 570| Downside: 3%
Kotak Mahindra Bank: Buy| Target: Rs 1475| Stop-Loss: Rs 1345| Upside: 4%
Jindal Steel & Power: Buy| Target: Rs 191| Stop-Loss: Rs. 172| Upside: 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.
