Nifty is likely to correct further and if it breaks 11,600. For the bullish momentum to continue, bulls have to push the index above 11760 levels.
After rallying about 3 percent in the month of August, Nifty took a breather and witnessed a profit booking decline on Wednesday. It closed below 11700 levels a day ahead of F&O expiry.
Rise in crude oil prices due to withholding of supply by Iran as well as a depreciating rupee too added to the negative sentiment.
For today, markets are expected to remain volatile ahead of August derivative expiry. Looking at the F&O data, the expiry should happen in the range of 11500-11800
History suggests that markets witness extreme action on either side in the last one hour of the trading session.
Going into September series, Nifty future has already seen a rollover of 53 percent. August series saw a rollover of 73 percent.
From technical perspective, 11768 is a crucial resistance to watch out for followed by 12000.
On the downside, support are placed at 11,620, and then towards 11500
Big News:
Foreign investors have pulled out USD 280 million from the Indian equity markets so far this year, while domestic institutional investors (DIIs) continue to invest more aggressively and have put in a staggering $10 billion.
The latest round of outflow came after foreign portfolio investors (FPIs) had poured in USD 7.77 billion in 2017, while DIIs had invested USD 14 billion during the same period, said a report by Morningstar Investment Adviser.
FPIs have adopted a cautious stance towards India and other emerging markets from the beginning of April.
Technical View:
Nifty forms a bearish candle on daily charts
The index is likely to correct further and if it breaks 11,600
For the bullish momentum to continue, bulls have to push the index above 11760 levels
Three levels: 11600, 11760, 11,800
Max Call OI: 11800, 11700
Max Put OI: 11500, 11200
Technical Recommendations:
We spoke to ICICI Direct.com and here’s what they have to recommend:
ITC: Buy | CMP: Rs 312| Target: Rs 345| Stop Loss: Rs 285| Return 11%| Time Frame: 6 months
State Bank of India: Buy| CMP: Rs 309| Target: Rs 341| Stop Loss: Rs 278| Return 10%| Time frame: 6 months
Majesco: Buy| CMP: Rs 515| Target: Rs 598| Stop Loss: Rs 448| Return 16%| Time Frame: 6 months
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.
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