Traders’ Diary: Nifty has major hurdle at 11,525 level
Our twin momentum oscillators, which usually have higher accuracy in catching short-term turning points, are in sell mode. We advise traders to refrain from maintaining or creating fresh long positions at this juncture
Nifty formed a bearish candle on the daily scale, as it closed below the opening levels. The index has been forming higher highs and lows for last three sessions. On an immediate basis, the index has to hold above 11,280 to extend its upward move towards the 11,400-11,450 zone, while on the downside, support exists at 11,280 and then 11,222 levels
The best way is to stay put where you are invested rather than getting disturbed with the short-term ups and downs in the market. The best way is to stay put where you are because ultimately the earnings growth is going to drive the market, irrespective of whichever government is in power. Also, volatility cannot be ruled out
The near-term trend of Nifty is positive amid a rangebound movement. Still there is no convincing indication of any downward reversal pattern at the highs. Immediate resistance to be watched at 11,450 levels
If the index breaks below 11,300 level, it would witness selling which would take it towards 11,270-11,230. Nifty is trading above 20, 50 and 100-day SMAs which are important short-term moving averages, indicating a positive bias in the short to medium term. The daily strength indicator RSI continues to remain in the positive terrain, indicating sustained strength whereas momentum oscillator Stochastic continue to remain flat indicating a possible consolidation in the near term
For the rally to sustain, we will need to see revival in private capex, and earnings growth coming back. After the carnage in the midcap and smallcap spaces, one can see some bounceback in these segments. We advise clients to remain cautious in these segments and buy into names where valuations remains reasonable and earnings growth is visible. We continue to remain selective and prefer stocks such as Atul, Granules India and Bata India
Market was rangebound and ended on a flat note while FIIs continued to pour liquidity into the domestic market. RBI's new mechanism to pump additional liquidity of $5 billion through foreign exchange swap from banks is likely to boost loan growth. Bank Nifty hit a record high with the possibility that RBI may consider a rate cut on the back of moderate inflation and slowdown in growth
We're seeing pre-election rally in anticipation of a stable government. The recent bargain hunting in midcap and smallcap space has further strengthened the move. Indications are still favourable from private banking majors along with select heavyweights from other indices. We advise continuing with buy-on-dips approach. Nifty has next major hurdle at 11,525
CLOSING BELL: Sensex, Nifty take a breather, end flat; NBCC, PCJ jump 7% each, NTPC gains 3%
Day 2: MSTC IPO subscribed 8% so far
Top 5 BSE gainers
Markets remained in a cautious mood however as another crucial vote to delay leaving the European Union is pending on Thursday evening.
The pan-European STOXX 600 was up 0.3 percent at 0817 GMT while the FTSE 100 was down 0.1 percent. Sterling was experiencing a similar retreat after its gains during the previous session.
There can be some volatility but the way political events have been played out, my sense is heightened volatility may not be there. As long as the market runs up, we have to be ready for some volatility, but I would say with confidence that heightened volatility may not be there in the run up to May 23rd.
IDBI Bank board to mull Rs 4,000 crore bond borrowing limit
Among the stocks that touched their 52-week lows were Alkem Laboratories, Blue Coast HotelsNSE 0.12 %, Diligent Media Corporation and Euro Multivision.
Jaihind Projects, JVL Agro Industries, Reliance Communications, Shirpur Gold Refinery and W S Industries also featured among the stocks that touched their 52-week lows on NSE.
WPI inflation rises to 2.93 pc in Feb
The Wholesale Price Index (WPI) based inflation stood at 2.76 per cent in January, 2019.
WPI inflation stood at 2.74 per cent during February 2018.
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Yes Bank breaks resistance at Rs 245; may test Rs 275
- Shares of Yes Bank gained as much as 3.97 per cent and broke above a resistance at Rs 245
- Resistance at Rs 245 is identified as the 38.2 per cent Fibonacci retracement level of the downtrend from Aug. 20, 2018 high to Nov. 29, 2018 low
- Stock also broke above its 200-day exponential moving average (EMA), seen as a bullish sign
- Breakout suggests, in the near term stock may rise up to the next resistance at Rs 275.35, the 50 per cent retracement level
- Trend Intensity (TI) indicator rises to 31, suggesting a strong uptrend for the stock, MACD is positive and above its signal line
- Stock is up 44.2 per cent in the last one month as of Wednesday's close, outperforming the broader NSE Index's 5.1 per cent gains in the same period (Source: Reuters)
DHFL jumps 4% on reports NHB found no deviation in books
Indian hotels is something that we like because if you look at the core operating performance in the last quarter that international properties, the room revenue has grown by 20% and F&B revenue has grown by 18% after a long time. If you look at the demand supply dynamics both internationally and in India it is actually getting a little better.
Morning dose of market 'gyaan'
It’s good to celebrate a 20% up move in a stock but not when the stock is already down - 60% from the top. #TheThoughtfulInvestor— Basant Maheshwari (@BMTheEquityDesk) 1552526516000
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OPENING BELL: Sensex gains 100 pts, Nifty50 above 11,350; ZEEL, Lupin jump 2% each
Among Sensex stocks, YES Bank was the best performer with gains of 1.70 per cent while Tata Motors declined the most.