A morning walk down Dalal Street | Bigger correction on cards if Nifty closes below 11,412-11,434

If Nifty closes below 11,412-11434 levels on Monday then it may set the tone for bigger correction which may eventually lead the index towards 11,230 kinds of levels, say experts.

Profit booking hit D-Street as both Sensex and Nifty closed off from their respective highs. The S&P BSE Sensex held on to its crucial psychological support at 38000 while the Nifty50 failed to close above 11500 levels for the week ended March 22.

On a weekly basis, Nifty50 closed marginally in green while the Sensex rose 0.37 percent.

The S&P BSE Mid-cap index slipped 0.59 percent on Friday while the S&P BSE Small-cap index was down by 0.44 percent in the same period.

Even though small-cap stocks underperformed but as many as 20 stocks in the S&P BSE Small-cap index rose 10-40 percent in five trading sessions which include names like Madhucon Projects, Usha Martin, Satin Creditcare, Saint-Gobain, Prabhat Dairy, Godrej Properties, SpiceJet, and Allsec Technologies.

The rupee Friday declined by 12 paise to close at 68.95 against the US dollar on rise in demand for the greenback from importers and sell-off in domestic equities.

On the institutional front, FPIs were net buyers in Indian markets for Rs 1374 crore while DIIs were net sellers to the tune of Rs 675 crore, provisional data showed.

Big News:

What is your call on Airline stocks which have rallied by about 27% in March. SpiceJet and InterGlobe Aviation have rallied by about 27 percent in March while Jet Airways rose 1.3% in the same period.

Well, experts are of the view that the recent passenger growth data was encouraging and SpiceJet is in talks with lessors to lease some of Jet Airways aircraft, and InterGlobe remains to hold a dominant position in terms of market share.

As Jet Airways is struggling to get an infusion from an external source and its existing shareholder Ethiad might exit this company entirely, investing in Jet Airways should be avoided till further stability is visible on the cards, suggest experts.

Indigo, with the majority of market share in this space, has become far too costly as market participants shifted gears towards Indigo at Jet’s cost. Samco Securities Ltd maintains an ‘Avoid’ for Indigo and a ‘Neutral’ stance for SpiceJet.

Technical View:

Nifty forms a bearish candle on the daily charts

The index negated its formation of higher lows after eight trading sessions which implies that some pause is visible at higher levels.

Broader market appears to be under pressure and in corrective mode as market breadth remained negative and in favour of bears for major part of the week even on day’s with positive closes.

If Nifty closes below 11,412-11434 levels on Monday then it may set the tone for bigger correction which may eventually lead the index towards 11,230 kinds of levels, say experts.

Three levels: 11434, 11572, 11600

Max Call OI: 11600, 11500

Max Put OI: 11000, 11200

Stocks in news:

IT company Infosys on Friday said it would invest USD 10 million (nearly Rs 70 crore) in California-based artificial intelligence-focussed The House Fund II. “

The country’s largest lender State Bank of India (SBI) on Friday said it has raised Rs 1,251.30 crore by issuing Basel III-compliant bonds.

SpiceJet Ltd said on Friday it was in talks with lessors globally to induct aircraft, in an effort to fill a gap after the grounding of its MAX fleet.

Technical Recommendations:

We spoke to Angel Broking and here’s what they have to recommend:

Jubilant FoodWorks: Buy| LTP: Rs 1430.40| Target: Rs 1565| Stop Loss: Rs 1384| Upside 9.4%

Sundram Fasteners: Buy| LTP: Rs 550.15| Target: Rs 615| Stop Loss: Rs 508| Upside 11.8%

Disclaimer:-The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.

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