Close above 11,800 levels could propel Nifty towards record highs

A volatile day for Indian markets but bulls managed to push the index back above crucial support levels which was a positive sign. Although both Sensex and Nifty closed the day with marginal losses.

The final tally on D-Street — the Sensex was down 35.78 points at 39031.55, while Nifty was down 6.50 points at 11748.20.

The broader market recovered from the low point but still sheds 1 percent in trade. The S&P BSE Midcap index closed 1.1 percent lower while the S&P BSE Smallcap index was down 1.27 percent.

On the macro front, India’s infrastructure output grew 4.7 percent in March from a year earlier, government data showed on April 30. For the 2018/19 financial year, infrastructure output grew 4.3 percent from the previous year, according to the data.

The rupee appreciated for the second straight session Tuesday to close higher by 46 paise at 69.56 against the US dollar as crude oil prices retreated from six-month high levels and the greenback weakened against global rivals.

On the institutional front, FPIs were net buyers in Indian markets for 114 cr while the DIIs were also net buyers to the tune of Rs 730 crore, provisional data showed.

Big News:

As many as 39 companies on the BSE will declare their results for the quarter ended March which include names like Bandhan Bank, Dabur India, L&T Infotech, MRF, Radico Khaitan, and Tata Power among others.

Dabur India: PAT likely to rise by 1.3% YoY to Rs 401 cr

L&T Infotech: PAT likely to rise by 8% YoY to Rs 365 crore

Technical View:

Nifty formed a Dragonfly Doji kind of pattern on daily charts

Dragonfly Doji can signal a potential reversal in the trend if it slips below 11,655 which was the intraday low formed in Tuesday’s trading session, suggest experts.

On the other hand, a close above 11,800 levels could propel the index towards record highs, they say.

Three levels: 11655, 11756, 11856

Max Call OI: 12000, 12500

Max Put OI: 11000, 11500

Stocks in news:

Ambuja Cements, a unit of global conglomerate LafargeHolcim, on Tuesday, reported a 57 percent year-on-year (YoY) jump in standalone net profit at Rs 427 crore for the first quarter ended March 2019.

Drug firm Lupin, in alliance with Natco Pharma, has received approval from the US health regulator to market generic Bosentan tablets used for treatment of pulmonary arterial hypertension, the Mumbai-based company said Tuesday.

TVS Motor Company on April 30 reported a 19.2 per cent decline in its standalone profit after tax (PAT) to Rs 133.8 crore for the fourth quarter of 2018-19.

Technical Recommendations:

We spoke to SMC Global Securities and here’s what they have to recommend:

Indian Oil Corporation Ltd: Buy| Target: Rs 168.50| Stop Loss: Rs 149| Upside 8%

Tech Mahindra Limited: Buy| Target: Rs 900| Stop Loss: Rs 790| Upside 8%

JSW Steel Limited: Buy| Target: Rs 336| Stop Loss: Rs 285| Upside 10%

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