The short term downtrend remains intact and failure near 11,100-11,150 would set in the next leg down.
What a comeback from the bulls in the second half of the trading session on Monday. The S&P BSE Sensex which was languishing near crucial support levels in the opening sessions saw massive recovery in the second half pushing the index higher by nearly 300 points towards the close of the trade.
The Nifty50 also managed to close above 11,000 mark. The large part of the recovery was led by financials, after the government plans to takeover IL&FS and contain the crisis from spreading.
The National Company Law Tribunal (NCLT) has approved the takeover of IL&FS board by government nominees. A new six-member board led by veteran banker Uday Kotak will take charge of the company.
The other members are former SEBI chief GN Vajpai, ICICI Bank chairman GC Chaturvedi, Tech Mahindra's Vineet Nayyar, and former bureaucrats Malini Shankar and Nand Kishore.
The bounce seen on Monday has scope to stretch further going ahead. On the higher side, 11,100-11,150 shall be the key hurdle zone to watch out for.
The short term downtrend remains intact and failure near 11,100-11,150 would set in the next leg down.
Rupee slumps 43 paise to 72.91 vs USD, ends near 2-week low.
Big news:
A small number crunching of data for the past 10 years suggest that bulls manage to take control in 5 out of last 10 years.
The index fell the most in October 2008 when D-Street witnessed a cut of 25 percent, followed by 2009 when the index dropped by 7 percent, and a 2 percent fall in October 2010.
Bulls managed to take control of the market in 2011 when it rose by 9 percent, followed by 8.4 percent rally seen in 2013, and 5.4 percent gain in 2017.
Technical View:
Nifty formed a bullish candle on daily charts
The Nifty is to move up further if it sustains above 10,900 and said the next target is seen at around 11,170 levels but the downside seems limited.
Three levels to watch: 11,850, 11171, 11350
Max Call OI: 11500, 11200
Max Put OI: 10800, 11000
Technical Recommendations:
We spoke to HDFC Securities and here’s what they have to recommend:
ABB: Buy| LTP: Rs 1,423| Target: Rs. 1,540 | Stop-Loss: Rs 1,360| Return 8%
Deepak Nitrite: Buy| LTP: 284| Target: Rs 310 | Stop-Loss: Rs 268| Return 9%
Exide Industries: Buy| LTP: 263| Target: Rs 285 | Stop-Loss: Rs 250| Return 8%
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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