RBI cuts repo rate: 12 rate-sensitive stocks that will benefit the most

The Reserve Bank of India (RBI) slashed repo rate by 25 bps to 6 percent on April 4 as expected and kept the stance unchanged to ‘Neutral’. This is the second rate cut in 2019.

“These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent while supporting growth,” the central bank said in a statement.

The MPC notes that the output gap remains negative and the domestic economy is facing headwinds, especially on the global front. The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish.

Rate cut usually acts as a sentiment booster and aid companies that have to service large debts. A cut by RBI injects liquidity in the economy. Loans with a low rate lead to an increase in buying interest in the consumer-driven economy which will help India Inc. to deliver strong earnings growth.

Top sectors which are likely to benefit the most from a rate cut are banking, NBFC, infrastructure and real estate. This rate cut will help in boosting demand and ease interest rate pressure on debt-heavy companies, suggest experts.

“If we look from the perspective of real estate sector the RBI rate cut will impact the home loan interest rate, this will allow the reduction in EMIs which will bring a positive impact on the sector's growth. IndiaBulls real estate and DLF are the two stocks which have some debt burden and seems to get the benefit of this rate cut,” Ritesh Ashar, CSO at KIFS Trade Capital told Moneycontrol.

“NBFC sector along with banks are also likely to get the benefit of this rate cut as the cost of funding will become low and there would be an improvement in the margin and in this space stocks like DHFL and Indiabulls Housing Finance looks quite promising,” he said.

Source:https://www.moneycontrol.com/news/business/stocks/rbi-cuts-repo-rate-12-rate-sensitive-stocks-that-will-benefit-the-most-3753751.html

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Gold gains as dollar eases; focus on US-China talks

Gold gained on Thursday, supported by an easing dollar as investors awaited progress on the ongoing Sino-U.S. trade negotiations after reports showed that both sides were nearing a deal.

Spot gold rose 0.2 percent to $1,291.89 per ounce as of 0332 GMT. U.S. gold futures firmed 0.1 percent at $1,296.90 an ounce.

"One of the key issues would be the China-U.S. trade negotiations. There is a lot of optimism around the idea that we will see a peaceful resolution and some agreement really soon," said Michael McCarthy, chief market strategist, CMC Markets.

"However, if the trade talks drag out we could see further support for gold because of its implications for growth."

Gold is often seen as a safe investment during times of financial and political uncertainties.

A pause in the equities rally also helped the bullion. Asian shares held near an eight-month peak as investors awaited developments on trade talks.

Negotiations between the United States and China made "good headway" last week in Beijing and the two sides aim to bridge differences during talks this week, White House economic adviser Larry Kudlow said.

The dollar was trading near one-week low posted in the previous session after data showed U.S. services sector activity hit a more than 19-month low in March and private payrolls grew less than expected.

Market participants are now awaiting the U.S. nonfarm payrolls data, due on Friday, as it would offer insights on the strength of the U.S. economy.

A weak payrolls data could further weigh on the U.S. unit, making dollar denominated metals cheaper for investors holding other currencies.

Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, also fell for a third consecutive session on Wednesday. Holdings were at their lowest level since Dec. 17 at 24.57 million ounces.

Among other precious metals, spot platinum rose the most in more-than-two-years in the previous session to touch its highest level since end-June 2018 at $879.03 an ounce.

The auto-catalyst metal was down 0.2 percent at $872.93 an ounce on Thursday, while its sister metal palladium was up 0.3 percent at $1,409.15.

Silver dipped 0.3 percent to $15.09 per ounce.

Source:https://www.moneycontrol.com/news/business/markets/gold-gains-as-dollar-eases-focus-on-us-china-talks-3760881.html

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Nifty hits record high: 10 stocks rallied 22-42% as index gained 1,160 pts

The optimism driven by increasing FII inflows helped Nifty50 to surpass its previous record high of 11,760.20 (touched in August 2018) on April 3 morning.

The index took 146 trading sessions to hit new record high of 11,761 on April 3. The rally actually started in February 2019, especially after opinion polls which indicated that ruling party can win 260-270 seats in general elections 2019.

FIIs have bought equity worth more than Rs 50,000 crore since February.

The Nifty50 has added 1,160 points and the BSE Sensex surged nearly 3,900 points since February 19, 2019.

The correction is over for the time being and the market is in uptrend. In fact, we are in a bull run started in 2013, though there were corrections in between. After September-October 2018 correction market nicely bounced back," Ramesh Damani, Member BSE said in an interview to CNBC-TV18.

Volatility is always associated with elections which come and go, the market is still in bull run and hope the Sensex will go above 40,000 and beyond soon, he added. However, as the market has rallied more than 10 percent and is at higher end of range, he would be cautious.

Among Nifty50, 46 stocks participated in the rally out of which top 30 stocks gained 10-42 percent.

Stocks that gained the maximum in last one-and-half-month are Indiabulls Housing Finance, Yes Bank, Hindustan Petroleum, Tata Motors and Indian Oil Corporation.

The stellar run was not restricted to benchmark indices only, in fact it spilled over to broader market as well which had underperformed since January 2018.

The Nifty Midcap index spiked nearly 14 percent and Smallcap index jumped 18 percent.

“Fresh highs were bound to happen as the force behind the trend looks intact for the further gains that may push Nifty to touch beyond 12K mark and Sensex beyond 39,500,” Mustafa Nadeem, CEO, Epic Research told Moneycontrol.

“Lower inflation, lower interest rate scenario, a dovish stance from Fed reserve and liquidity-driven markets, all these factors are favoring the current scenario,” he said.

The rally was across sectors with Nifty Bank, energy, financial service, infra, metal and realty gaining the most (12-20 percent). PSU Bank, the biggest underperformer due to NPA concerns, turned biggest gainer with 27 percent upside since February 19.

Source:https://www.moneycontrol.com/news/business/markets/nifty-hits-record-high-10-stocks-rallied-22-42-as-index-gained-1160-pts-3753061.html

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Indices begin April series firm, Nifty above 11,600; Vodafone Idea gains 14%

Market Opens: It is a strong start for the April F&O series on Friday with Nifty above 11,600 level.

At 09:18 hrs IST, the Sensex is up 171.30 points or 0.44% at 38717.02, and the Nifty up 49.60 points or 0.43% at 11619.60.  About 592 shares have advanced, 203 shares declined, and 50 shares are unchanged. 

The gainers are IOC, Indiabulls Housing, Hindalco, Wipro, Tech Mahindra, RIL, BPCL, Can Fin Homes, Vodafone Idea, Jet Airways, PFC, REC while losers include Axis Bank, IndusInd Bank, Eicher Motors, SBI life and Motherson Sumi.

All the sectoral indices are trading in green led by metal, energy, infra, IT, pharma and auto.

Rupee Opens: The Indian rupee gained in the early trade on Friday. It opened higher by 10 paise at 69.24 per dollar versus previous close 69.34.

Source:https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-bse-nse-indices-begin-april-series-firm-nifty-above-11600-vodafone-idea-gains-14-3722631.html

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Closing Bell: Nifty ends March series above 11,550, Sensex up 412 pts; PSU banks outperform

Market Close: Bulls took control on Dalal Street and pushed the Nifty above 11,550 on the March expiry day.

The Sensex was up 412.84 points at 38,545.72, while Nifty is up 136.50 points at 11,581.50. About 1633 shares have advanced, 979 shares declined, and 165 shares are unchanged. 

Indiabulls Housing, Zee Entertainment, HCL Tech, Adani Ports and SBI were the top gainers on the Nifty, while losers include ONGC, Tata Steel, Hindalco Industries, Dr Reddy’s Labs and Bajaj Auto.

Except metal all other sectoral indices ended in green led by PSU bank, IT, infra, FMCG, auto, energy and pharma.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-nifty-ends-march-series-above-11550-sensex-up-412-pts-psu-banks-outperform-3714661.html

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Larsen & Toubro gains after hydrocarbon engineering division bags order

Larsen & Toubro shares gained nearly a percent in the morning trade on March 26 after its hydrocarbon engineering division bagged an order in Oman.

The stock was quoting at Rs 1,381.75, up Rs 4.55, or 0.33 percent on the BSE, at 1012 hours IST.

"The wholly-owned subsidiary L&T Hydrocarbon Engineering Limited has won a large order from Tawfiq Coke Products-Oman," the engineering and construction major said in its exchange filing.

The contract scope includes the selection of technology licensor, FEED & EPC for a 2 x 225,000 TPA plant of calcined coke from green pet coke.

"This award will further reinforce L&T's operations in Oman and provide an opportunity to contribute to the expansion of industrial facilities in Sohar," the company said.

Source:https://www.moneycontrol.com/news/business/markets/larsen-toubro-gains-after-hydrocarbon-engineering-division-bags-order-3700871.html

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Nifty may consolidate ahead of March expiry; HDFC Bank, ICICI, SBI top bets

Since the index is already up for 12-13 trading sessions, one should wait for some price and time correction to take place to initiate fresh long positions, Arun Kumar, Market Strategist, Reliance Securities, said in an interview with Moneycontrol’s Kshitij Anand.

Q) What is fuelling a rally in Nifty Bank and near-term target? Any stocks particularly in that index which are still looking attractive after recent rally?

A) The sharp breakout of NiftyBank index seen on March 5, 2019, triggered bullish signals on a near-term basis. On March 7, the Bank index surpassed its high of 27,754 recorded on January 9, 2019, on a closing basis.

This move confirmed the breakout and attracted long-term participation. Stocks, especially Axis Bank and ICICI Bank, improved the bullish sentiments with their sharp rallies.

Since the index is already up for 12-13 trading sessions, one should wait for some price and time correction to take place to initiate fresh long positions.

HDFC Bank, ICICI Bank, SBI and Axis Bank may be considered for going long, post the corrective action.

Q) Mid and small-cap stocks which have been hitting 52-week highs on consistently. Are they still worth looking at?

A) The NSE Midcap Index has consolidated around its long-term average for the past eight trading sessions and the index has moved up significantly after testing its 200-week moving average over the past five weeks.

Whereas, NSE Small-cap Index has been hovering just below its 200-DMA for the past nine trading sessions. It trades just below its 200-week moving average.

From a relative strength perspective (RSI), NSE Small-cap index displays better strength. Considering the behaviour of these indices against the benchmark, one must be very selective and trade in qualitative stocks.

Q) How is Nifty looking on charts ahead of the March F&O expiry?

A) The NSE Nifty50 Index is stretched on the near-term basis and may consolidate ahead of the expiry. Since the index is positive on a medium-term basis, we expect any corrective action to be limited. Ideally, it should hold above 11,250 on closing basis during next week to maintain its positive momentum.

Q) How are Airline stocks such as IndiGo, SpiceJet, and Jet Airways looking on charts?

A) IndiGo continues to rule the roost as the leader in this pack. It is the outperformer. The stock has scope to retain its leadership on a medium-term basis.

SpiceJet comes in as the second-best stock to trade and based on the setups it could generate positive returns on a medium-term basis.

However, Jet Airways has underperformed and there are no immediate signs of reversing this trend.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source:https://www.moneycontrol.com/news/business/markets/nifty-may-consolidate-ahead-of-march-expiry-hdfc-bank-icici-sbi-top-bets-3686931.html

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These 30 stocks made most of the bull run, rallied 30-99% in a month

With D-Street riding a crest, stocks across sectors posted handsome gains.In the BSE 500 index, which gained 9 percent in 1 month, 30 stocks rallied in the range of 30 percent to 99 percent, which also include stocks that singed in September and October due to factors such as corporate governance issues, liquidity crisis and mixed earnings.

Suzlon Energy, Manpasand Beverages, Dilip Buildcon, Edelweiss Financial, CG Power, Bombay Dyeing, Adani Power, Allahabad Bank, Mahindra Holidays, NBCC, IRB Infrastructure, Just Dial, ICICI Securities, Kalpataru Power Transmission and Can Fin Homes were among the top 30 stocks.

On hopes of Modi government returning to power, FIIs are also in a bullish mood.

"After the clarity on the election results and earnings pickup, we feel, FIIs will do historic investments this year," Foram Parekh, Fundamental Analyst – Equity, Indiabulls Ventures, told Moneycontrol.

The most favoured stocks in this run were among midcaps and smallcaps.

In Nifty50, top four stocks were from PSU segment. They were HPCL (up 35 percent), IOC (up 29 percent), BPCL (21 percent) and NTPC (21 percent) while the rest five among top 10 stocks were from banking and financial segment. Yes Bank, Bajaj Finserv, IndusInd Bank, ICICI Bank and SBI gained 15-17 percent.

Source:https://www.moneycontrol.com/news/business/markets/these-30-stocks-made-most-of-the-bull-run-rallied-30-99-in-a-month-3683761.html

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Closing Bell: Sensex ends higher, Nifty holds 11,500; PNB gains 3%

Market Close: Benchmark indices ended mixed after they remained range bound throughout Wednesday. 

The Sensex was up 23.28 points at 38386.75, while Nifty was down 11.40 points at 11521. About 1104 shares have advanced, 1532 shares declined, and 173 shares are unchanged. 

Indiabulls Housing, Hindalco Industries, Infosys, Dr Reddy’s Labs and Wipro were among major gainers, while losers include HPCL, Zee Entertainment, BPCL, NTPC and ONGC on the Nifty.

Except bank, pharma and IT all other sectoral indices are ended in red led by auto, metal, energy, FMCG and infra.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-sensex-ends-higher-nifty-holds-11500-pnb-gains-3-3669791.html

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Sensex back above 38K: Here’s how you can allocate Rs 10 lakh right now

It is not the time to invest because of the massive up move we saw in the last few days. The market might be overvalued right now. If these are your thoughts, rest assured you are not alone.

History suggests that retail investors joined the rally near highs and booked profits or closed positions when the time came to add positions. Well, the market is certainly not at its peak but the risk-to-reward ratio might have come down at least for the near term.

But, if you plan to stay in the market for the long term – the time is still right, suggest experts, and efficient portfolio allocation would be the key for wealth generation.

The market has sprinted in March to reclaim lost glory as Sensex and Nifty both are above crucial resistance levels.

The S&P BSE Sensex has rallied 2,157 points, or about 6 percent, so far in March while Nifty50 has registered a vertical climb of 634 points, or 5.8 percent.

So, what fuelled the rally? Well, a host of global as well as domestic factors led to strong risk-on sentiment towards equities. The gush of liquidity from foreign institutional investors of about Rs 19,000 crores has been the major factor driving the rally.

“Weakness in the US dollar is normally positive for emerging market inflows and India has got more than the fair share of foreign inflows due to improving macro scenario and market sentiments,” Gaurav Dua, head of research, Sharekhan by BNP Paribas told Moneycontrol.

“Recent events have increased the probability of the NDA government gaining higher than earlier expected seats in the forthcoming elections boosting market sentiment. The rally is seen across financial markets - equities, bond and appreciation in the rupee despite the rising fears of fiscal slippages,” he said.

Time to put additional funds?

Experts feel that the time is fairly right for investors to get into market and dips, if any, should be used for making a diversified portfolio which leads to long-term wealth creation.

Here are views from various experts on allocation if you are looking to invest right now. We have taken Rs 10 lakh as investment corpus:

“The strategy at the current phase should be focused towards having a proper balance across different asset classes. And therefore, by keeping a long-term view, an investor can allocate 40 percent of total amount, say Rs 10 lakhs, in quality large-cap companies coupled with a marginal allocation of 10 percent in midcap/small cap companies which have to be backed by decent valuation,” Dinesh Rohira. Founder & CEO at 5nance.com told Moneycontrol.

“It is also practical to allocate 30-40 percent of overall allocation in debt instrument with short-to-medium maturity papers given a possible pause in interest rate regime going forward, and remaining 10 percent to be allocated in gold or gold funds,” he said.

He further added that while investing in equity, one should follow a staggered approach and gradually increase the allocation once the market stabilizes in a fair trend.

Source:https://www.moneycontrol.com/news/business/stocks/sensex-back-above-38k-heres-how-you-can-allocate-rs-10-lakh-right-now-3655141.html

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US oil retreats from 2019 high on soaring production

US crude futures eased slightly on March 15 after hitting a 2019 high, as worries about the global economy and robust US production put a brake on prices.

West Texas Intermediate (WTI) crude oil futures settled down 9 cents at $58.52 a barrel, having hit their highest so far this year at $58.95.

Brent crude futures settled down 7 cents at $67.16 a barrel, below their 2019 peak of $68.14 reached on March 14.

US crude ended the week 4.1 percent higher, and Brent was up 1.9 percent.

"The market is taking a pause as it tries to digest mixed reports that give us different ideas of future supply and demand," said Phil Flynn, an analyst at Price Futures group in Chicago. "The OPEC-plus meeting could give us a little direction," he said.

The Organization of the Petroleum Exporting Countries and its allies including Russia, an alliance known as OPEC+, agreed last year to cut production, partly in response to increased U.S. shale output.

OPEC+ ministers will meet on April 17-18 to decide production policy.

"If OPEC+ decide to extend (cuts) ... we expect that inventories will continue to draw through at least Q3," US investment bank Jefferies said.

The International Energy Agency said on March 15 that the market could show a modest surplus in the first quarter of 2019 before flipping into a deficit in the second quarter by about 0.5 million barrels per day (bpd).

It said a comfortable supply cushion by OPEC could prevent any price rally in case of possible disruptions and that non-OPEC oil output growth led by the United States should ensure demand is met.

US energy firms this week reduced the number of oil rigs operating for a fourth week in a row, with drilling slowing to its lowest in nearly a year, prompting the government to cut crude output growth forecasts.

Drillers cut one oil rig in the week to March 15, bringing the total count down to 833, the lowest since April 2018, General Electric Co's Baker Hughes energy services firm said in its closely-followed report on Friday.

Oil price gains have been limited by concerns that an economic slowdown that has gripped large parts of Asia and Europe will dent growth in fuel demand.

But oil consumption has held up so far.

Crude oil use in China, the world's biggest importer, in the first two months of 2019 rose 6.1 percent from a year earlier to a record 12.68 million bpd, official data showed this week.

Goldman Sachs said growth in global demand for crude in January was "nearly 2.0 million barrels per day, with strength visible in both emerging markets and developed economies."

Source:https://www.moneycontrol.com/news/business/commodities/us-oil-retreats-from-2019-high-on-soaring-production-3653221.html

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Bank Nifty gains 10% in March: Here's what is driving the rally in banking stocks

Banking and financial services stocks have been key drivers of the current rally that has led benchmark indices to fresh six-month highs. The up move has been fuelled by hopes of Modi's return at the Centre and renewed FII inflow.

Bank Nifty has rallied 10 percent in March so far and financial services index has climbed around 8 percent in comparison to Nifty's over 5 percent gain.

Index constituents Punjab National Bank, Bank Of Baroda, IndusInd Bank, IDFC First Bank, ICICI Bank, RBL Bank and SBI have rallied 10-20 percent during the current month.

Meanwhile, Kotak Mahindra Bank, Federal Bank, HDFC Bank, Yes Bank and Axis Bank have gained 5-9 percent.

Source:https://www.moneycontrol.com/news/business/markets/bank-nifty-gains-10-in-march-heres-what-is-driving-the-rally-in-banking-stocks-3649921.html

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Investor wealth up Rs 8 lk cr in March as FII inflows get a boost, Street expects Modi return

The benchmark index, S&P BSE Sensex, fell for nine consecutive days last month from February 7 to 19. Given the somber sentiment on the Street at that time, no one could have thought that the index would rally 2,248 points in the next 14 sessions.

Thanks to the strong rally in past few sessions, the market capitalisation (m-cap) of BSE-listed companies rose by Rs 12 lakh crore as on March 12 to Rs 148.20 lakh crore from Rs 136.24 lakh crore as recorded on February 19 when the index made a bottom of 35,287.

In March alone, m-cap of BSE-listed companies has risen by Rs 7.79 lakh crore.

Both Sensex and Nifty have risen above their crucial resistance levels to hit 6-month highs, thanks to liquidity push from foreign institutional investors (FIIs), and expectations of Modi 2.0 in the upcoming Lok Sabha elections to be held from April 11 to May 19.

“Before the Pulwama attack, there was uncertainty about the formation of next government. The way government has handled the situation increased the probability of BJP coming back to power,” Rusmik Oza, Head of Fundamental Research, Kotak Securities told Moneycontrol.

“Market is sensing a BJP victory after the Pulwama event and developments that have taken place since then. In the last three months, activity in emerging markets has improved with improved flows,” he said.

One big factor that is pushing the market higher is massive liquidity push seen from foreign institutional investors (FIIs) so far in March and February. FIIs have poured a little over Rs 10,000 crore in Indian equities till March 12.

FPIs were net buyers (equity and debt) in February as well as January 2019 for Rs 13,564 crore and Rs 127 crore, respectively. Experts feel that with FII flows resuming and domestic investors getting comfortable with the political developments, a host of beaten-down largecaps, mid and smallcaps are doing catch-up now.

“FIIs are continuously buying quality names that we saw in recent block deals of Kotak Bank, Wipro, etc. With stability in INR and supportive macros and micros can expect similar or better flow in the near term,” Yogesh Mehta, VP, Retail Research, Motilal Oswal Securities told Moneycontrol.

“Lower inflation, lower interest rates, stronger rupee and stable crude prices are the support for India’s economy whereas global markets are worrisome over the growth slowing down, Brexit and tariff war between US and China, which indicates Indian markets are decoupled due to the election in the centre stage,” he said.

Mehta further added that the recent air strike in Balakot has increased the popularity of Modi and markets have started projecting better performance of the ruling party in the coming election.

Source:https://www.moneycontrol.com/news/business/markets/investor-wealth-up-rs-8-lk-cr-in-march-as-fii-inflows-get-a-boost-street-expects-modi-return-3636791.html

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Sensex gains 100 pts, Nifty above 11,300; IT stocks in focus

Market Opens: It is a flat start for the Indian indices on Wednesday with Nifty below 11,300 level.

The Sensex is down 26.84 points at 37508.82, while Nifty is down 15.20 points at 11286. About 585 shares have advanced, 486 shares declined, and 33 shares are unchanged. 

Interglobe Aviation, Apollo Tyres, Nestle, Eicher Motors, RIL, Wipro, ITC, HUL, Infosys are among major gainers on the indices, while losers are IOC, HPCL, Vedanta, JSW Steel, Kotak Mahindra Bank, ICICI Bank, Tata Motors, Allahabad Bank, Oil India and ONGC.

On the sectoral front, auto, bank, infra and metal indices are witnessing selling pressure, while FMCG ad IT indices are trading with marginal gains.

Rupee Opens: The Indian rupee opened marginally lower at 69.74 per dollar on Wednesday against previous close 69.70.

Source:https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-bse-nse-sensex-gains-100-pts-nifty-above-11300-it-stocks-in-focus-3639631.html

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Nifty forms bullish candle for second day in a row, profit booking likely

The Nifty50 after strong opening continued its run throughout the session and closed at highest levels in last six months on Tuesday. Strong global cues and FII flow lifted sentiment.

The index closed above 11,300 levels and formed bullish candle on the daily charts for second consecutive session.

The index has managed to cross 11,118 and 11,180 zones in last two sessions and supports are gradually shifting higher with the higher pace of buying momentum, but as it entered into overbought zone, there could be some profit booking in coming sessions, experts said.

The Nifty50 after opening sharply higher at 11,231.35 gained more strength as the day progressed and hit an intraday high of 11,320.40. The index closed 133.20 points or 1.19 percent higher at 11,301.20, the highest level since September 17, 2018.

"Nifty50 registered yet another day of gap up opening with strong bullish candle for second session in a row to continue its march towards northern direction as it cleared near term critical hurdles one after the other. Once a consolidation breakout happens it becomes quite natural to register this kind of sustainable upswings for couple of sessions," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said, however, as Nifty50 is nearing its logical resistance levels on the back of strong rally it may undergo some profit booking as it nears 11,400 levels.

Besides, this sharp upmove appears to have brought the indices into overbought zone on lower time frame charts making a case for some cooling off in the near term, he added.

On the down sides, Tuesday's gap zone of 11,227–11,180 can be considered as critical support going forward below which short term trend shall come under pressure, according to Mazhar.

For the time being, he advised traders to consider booking profits as Nifty heads towards 11,400 levels.

India VIX closed higher after the declines of last seven trading sessions. It was moved up by 1.33 percent to 15.09 levels.

On Option front, maximum Put open interest (OI) is at 11,000 followed by 10,700 strike while maximum Call OI is at 11,400 followed by 11,500 strike.

Meaningful Put writing is at 11,200 followed by 11,300 strike while Call unwinding is at all the immediate strikes with minor Call writing at 11,350 strike.

Experts said Option band signifies a shift in higher trading range in between 11,150 to 11,450 zones.

"Nifty index surpassed its resistance trend line of the sideways channel and closed above the same with the formation of bullish candle on daily scale which indicates bullish bias. Now it has to continue to hold above 11,200 zone to extend its gains towards 11,400-11,450 zones," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.

Overall setup and momentum is positive and a follow up could continue its extended momentum while immediate support exists at 11,200 then 11,118 zones, he added.

Bank Nifty rallied by more than 450 points and made a new life-time high towards 28,488 mark by crossing previous high of 28,388 zones.

It closed at 28,443.70, up 477.05 points and formed a bullish candle on daily scale which indicates that bulls are holding tight grip in the market with fresh breakout.

"Now it has to continue to hold above 28,150 zones to extend its momentum towards new life time high of 28,750-28,800 zones while on the downside major support exists at 28,000 then 27,750 levels," Chandan said.

Source:https://www.moneycontrol.com/news/business/markets/technical-view-nifty-forms-bullish-candle-for-second-day-in-a-row-profit-booking-likely-3637471.html


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