It was a volatile Wednesday as Nifty moved in a range of 150 points. After starting the day on a positive note, bulls failed to retain control on D-Street.
Bears made a comeback in the last one hour of the trading session and pushed the index towards 100-day moving average placed at 11,134 by making a large bearish candle on the charts.
The index resumes its fall after making a bullish candle in the previous trading session. The index witnessed a selling pressure near its 5-day exponential moving average (EMA) and 100-day EMA.
India VIX moved up by 5.63 percent at 28.65. However, higher VIX suggests that volatile swings could continue in the market ahead of Election polls and outcome.
On the macro front, India's exports rose marginally by 0.64 percent in April to $26 billion while imports increased by 4.5 percent to $41.4 billion compared to the year-ago month, according to official data released May 15.
The rupee May 15 appreciated by 10 paise to close at 70.34 against the US dollar, marking the second straight session of gain driven by easing crude prices, while the Reserve Bank's plan to conduct open market operation also buoyed investor sentiment.
On the institutional front, FPIs were net sellers in Indian markets for Rs 1142 crore while DIIs were net buyers to the tune of Rs 671 crore, provisional data showed.
Big News:
As many as 74 companies will declare their results for the quarter ended March which include names like Bajaj Finserv, Bajaj Finance, Bank of India, D B Corp, Hindalco Industries, JK Tyres, Praj Industries, and Visa Steel among others.
Bajaj Finance: PAT likely to grow by 42% YoY to Rs 1062 crore
Hindalco: PAT likely to rise by 10% YoY to Rs 1267 crore
JSW Energy: Company likely to report a loss of Rs 73 crore
(All estimates are from Motilal Oswal)
Technical View:
Nifty formed a bearish candle on the charts
Going forward, investors are advised to create short positions only if the index closes below 11,100 while a close above 11,300 could negate the negative sentiment and we could see bulls making their way back into D-Street.
Three levels: 11100, 11136, 11300
Max Call OI: 12000, 12500
Max Put OI: 11000, 11500
Stocks in news:
Drug maker Lupin on May 15 said it has received three observations from the US health regulator for its Aurangabad-based manufacturing facility.
Tata Chemicals (TCL) said it will transfer its consumer products business to Tata Global Beverages (TGBL), according to a May 15 release filed with the exchanges.
Torrent Power Wednesday reported over 88% fall in its consolidated net profit at Rs 25.80 crore for the quarter ended March 2019.
Technical Recommendations:
We spoke to Bonanza Portfolio Ltdd and here's what they have to recommend:
Ujjivan Financial Services: Buy| CMP: Rs.317.30| Target: Rs 344|Stop Loss: Rs 307|Upside 8%
Axis Bank: Sell| CMP: Rs.721.95| Target: Rs 670|Stop Loss: Rs.741|Upside 7%
HDFC: Sell| CMP: Rs 1944.95| Target: Rs 1847|Stop Loss: Rs 1993|Upside 7%
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