The momentum still remains strong which could take the index towards 11800 levels; hence, investors should remain long with a stop loss below 11,700 levels, suggest experts.
Indian markets hit a fresh record high on Tuesday supported by positive global cues. The Nifty50 hit a fresh record high of 11,760.
In fact world stocks on Tuesday hit a six-month high lifted by receding fears of trade wars.
On the economic front, the US will releases the second version of Q2 GDP on Wednesday.
Growth is expected to be revised lower to 4 percent, down from the initial reading of 4.1 percent.
However, that would continue to mark the fastest rate of growth in four years, media reports suggest.
Coming to Indian markets, 11768 is a crucial resistance to watch out for Nifty, and any level above 11768 could extend the rally towards 12000.
As far as support is concerned 11,620 is a level to watch out for| A stop loss for all long positions can be kept at 11,700 levels
Indian rupee ended up 6 paise at 70.10 against dollar, recovers from record closing low.
Foreign institutional investors (FIIs) sold shares worth Rs 161 crore and domestic institutional investors also sold Rs 199 crore in the Indian equity market on Tuesday, as per provisional data available on the NSE.
Big News:
Nifty rejig happening in September
The National Stock Exchange (NSE), on August 28, announced the exclusion of Lupin from the Nifty index.
The scrip will be replaced with that of JSW Steel on the benchmark 50-share index.
These changes shall come effective from September 28, 2018
The index provider also announced that it will be replacing nine stocks in the Nifty Midcap 100 index.
The Nifty Midcap 50 index also underwent some changes as Adani Power, Biocon, Engineers India, IDFC and PC Jeweller will be replaced with Cummins India, Jubilant Foodworks, Power Finance Corporation, Punjab National Bank and Rural Electrification Corporation.
In the Nifty 500 index, 25 companies witnessed exclusions as well.
To name a few, Aban Offshore, Bhushan Steel, DB Realty, HDIL, Kesoram Industries and Marksans Pharma, among others will no longer be a part of this index.
These shall be replaced by names such as Bandhan Bank, Galaxy Surfactants, ICICI Securities, HAL, HDFC Standard Life, Lemon Tree Hotels, and Reliance Nippon Life AMC, among others.
Technical View:
Nifty forms a Doji candle on daily charts
A Doji usually means indecisiveness among the bulls as well as bears, but the momentum still remains strong which could take the index towards 11800 levels; hence, investors should remain long with a stop loss below 11,700 levels, suggest experts.
Three levels: 11700, 11770, 12000
Max Call OI: 11800, 11700
Max Put OI: 11500, 11700
Technical Recommendations:
We spoke to Guiness Securities and here’s what they have to recommend:
Vedanta: BUY | Close: Rs 230.30 | Target: Rs 255| Stop loss: Rs 217 | Return: 10.73%
Kotak Mahindra Bank: BUY | Close: Rs 1285.10 | Target: Rs 1330 | Stop loss: Rs 1250 | Return: 3.5%
Gujarat Narmada Valley Fertilizers and Chemicals: BUY | Close: Rs 119.60 | Target: Rs 135 | Stop loss: Rs 110 | Return: 12.88%
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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