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A morning walk down Dalal Street | Sell-off could intensify if Nifty dips decisively below 10,900

The falling near the lower end of the range indicates the market is in bears' control, and rising volatility is giving putting sustained pressure at every bounce.

August 22, 2019 / 07:19 AM IST
 
 
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Indian market witnessed selling pressure at higher levels on Wednesday. The Nifty50 saw a cut of about 100 points while Sensex plunged by more than 250 points.

With muted earnings and weak global cues, investors are hoping for any stimulus/measures from the Indian government to lift the sentiments.

An extended slowdown in the domestic economy has increased the volume of stressed assets in segments like industrial, infrastructure and financials, suggest experts.

The broader market indices - BSE Midcap and Smallcap too ended lower by 1.3% and 1.4% respectively.

Barring IT, all the sectoral indices, witnessed selling pressure. Notably, Capital Goods, Consumer Durables, Metals and Oil & Gas were the top losers in the range of 1.8%-2.9%.

On the institutional front, FPIs were net sellers in Indian markets for Rs 770 cr while the DIIs were net buyers to the tune of Rs 353 cr, provisional data showed.

Big News:

SEBI simplifies registration criteria for FPIs

The Securities and Exchange Board of India (SEBI) has done away with the broad-based eligibility criteria for foreign portfolio investors (FPIs) to simplify and expedite the registration process for these entities.

In its board meeting on August 21, SEBI also cleared the proposal to make Central Banks of other countries eligible for FPI registration. They have been recategorised into two categories, instead of the current three categories.

The SEBI board also approved the norms for migration of companies listed on the Innovators Growth Platform (IGP) to regular trade category on the main board.

The regulator has allowed flexibility to mutual funds to invest in non-convertible debentures of unlisted entities up to a maximum of 10 percent of the debt portfolio of the scheme, subject to regulations.

Technical View:

Nifty formed a bearish candle on the daily charts despite strong European cues

The falling near the lower end of the range indicates the market is in bears' control, and rising volatility is giving putting sustained pressure at every bounce, hence, there could be more sell-off if index dips decisively below 10,900 in the coming sessions, experts feel.

Bulls need to defend 10,900, which will also extend the range-bound move between 11,150–10,900 for some more time.

Three levels: 10906 (intraday low on Wednesday), 11034 (Intraday High), 11,191 (200-DMA)

Max Call OI: 11000, 11500

Max Put OI: 11000, 10800

Technical Recommendations:

We spoke to Bonanza Portfolio and here’s what they have to recommend:

NIIT Tech: Buy| LTP: Rs 1365.45 | Target: Rs 1460|Stop Loss: Rs 1310|Upside 7%

Nestle India: Buy| LTP: Rs.12,594.10| Target: Rs 13,350|Stop Loss: Rs 12,210| Upside 6%

IndusInd Bank: Sell| LTP: Rs. 1,367.20 | Target: Rs 1,285|Stop Loss: Rs 1,415|Downside 6%


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.

Moneycontrol News
first published: Aug 22, 2019 07:19 am

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