A morning walk down Dalal Street | Stay cautious before taking big positions

In Thursday’s session if Nifty50 slips below 11,276 levels then the index can come under selling pressure on the intraday basis.

It can’t get better than this, if you trade in equity markets. Three straight sessions of rallies put Nifty50 well above 11300 and Sensex above 37,700.

The final tally – the S&P BSE Sensex closed 216 points higher at 37,752 while the Nifty50 ended at 11,341, up 40.50 points. Experts see the rally extending towards 11400-11500 levels supported by banks, and heavyweight stocks.

The broader market indices underperformed the benchmark with BSE Midcap & Smallcap closing lower by 0.4% and 0.3% respectively.

After a recent smart recovery from the lows, some consolidation could take place in the coming sessions, suggest experts. The market participants would continue to focus on the progress of US-China trade talks, Brexit deal, crude oil price, and currency movement.

The Indian rupee on Wednesday clocked its third straight session gains, rising 17 paise to close at a fresh two-month high of 69.54 against the US dollar on sustained foreign fund flows.

On the institutional front, FPIs were net buyers for Rs 2722 crore compared to DIIs which were net sellers to the tune of Rs 1508 crore, provisional data showed.

Technical View:

Nifty formed a Hanging Man kind of pattern on daily charts

Usually, this pattern appears around short term turning points. So traders should be cautious before taking big positions in coming sessions, experts said.

In Thursday’s session if Nifty50 slips below 11,276 levels then the index can come under selling pressure on the intraday basis

Three levels: 11276, 11352, 11400

Max Call OI: 11500, 11400

Max Put OI: 11000, 10700

Stocks in news:

Promoter entities of Bajaj Consumer Care have sold 6.85 percent stake in the FMCG firm for about Rs 320 crore through an open market transaction.

The National Company Law Appellate Tribunal Tuesday reserved its order on a petition by Reliance Communications which has approached the tribunal seeking the release of income tax refunds to clear dues of Ericsson.

Grappling a shortfall in tax revenues, the government has pressed cash-rich PSUs like Indian Oil Corp (IOC) and Oil and Natural Gas Corp (ONGC) to pay a second interim dividend for the current fiscal after seeking regulatory nods.

Technical Recommendations:

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

PVR Limited: Buy| Target: Rs 1805| Stop Loss: Rs 1497| Upside 11%| Time Frame 6 months

Canara Bank: Buy| Target: Rs 280| Stop Loss: Rs 245| Upside 7% Time Frame 14 days

Narayana Hrudayalaya: Buy| Target: Rs 262| Stop Loss: Rs 199|Upside 17%| Time Frame 6 months

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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