The support for the Nifty will now come in at 11,495 and 11,320 levels while bulls will only be able to reclaim momentum if the index manages to cross 11,620-11,700 levels on closing basis.
Another weak day for Indian markets. The Nifty50 failed to hold on to 11600 levels and dipped below 11,550 levels. It breached its 5 and 13-EMA but found support near its 20-EMA on daily charts on Tuesday.
A weaker currency and rising crude oil prices are a lethal combination for India.
Rising crude oil price may spike inflation in near term, it also impacts our import bills
The Indian currency has touched a record high against dollar at 71.59, depreciating in value with no signs of recovery.
This worsening macroeconomic situation put pressure on the markets for the second day in a row.
Fall in the Midcap and Small Indices were even sharper where both fell by over 2.5 percent each.
The volatility has again risen on Tuesday breaking out from a falling trend line on weekly charts. India VIX, the volatility index, was up 2.87 percent at 13.7775. Volatility and market levels have an inverse relation.
Now, the support for the Nifty will now come in at 11,495 and 11,320 levels while bulls will only be able to reclaim momentum if the index manages to cross 11,620-11,700 levels on closing basis.
On the macroeconomic front, investors should watch out for Service and composite PMI data for the month of August which will be announced later today.
Technical View:
The Nifty formed a bearish candle on the daily charts
Three levels: 11495-11485, 11620, 11760
Max Call OI: 11800, 12000
Max Put OI: 11500, 11400
Technical Recommendations:
We spoke to Guiness Securities Ltd. and here’s what they have to recommend:
Shriram Transport Finance Corporation: SELL | Close: Rs 1297.30 | Target: Rs 1260, Rs 1230| Stop loss: Rs 1335 | Return: 5%
Mahindra CIE Automotive: BUY | Close: Rs 277.35 | Target: Rs 318 | Stop loss: Rs 258 | Return: 14%
Shreyans Industries: BUY | Close: Rs 179.30| Target: Rs 205 | Stop loss: Rs 163 | Return: 14%
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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