Nifty looks weak

Money Times - - Market Outlook / Techno Funda - By Ro­han Nalavade

Last week, the Nifty lost more than 500 points and closed at 10316. Be­low 10460, the mar­ket is weak and can test 10200-10150 lev­els. The weekly can­dle of Nifty is mak­ing a ‘lower high and lower low’ for­ma­tion, which in­di­cates more down­fall from the cur­rent level. The mar­kets may sta­bi­lize around 10200-10150 lev­els, where fresh buy­ing will be seen. Hence, wait for the Nifty to hit 10200 to ac­cu­mu­late qual­ity stocks like Yes Bank, Reliance In­dus­tries, HDFC Bank, Ju­bi­lant Food­works, etc. for the long term. Ac­cu­mu­late fun­da­men­tally strong stocks in small lots and on dips to build a good port­fo­lio.

The global sen­ti­ment is also weak. Crude oil prices are on the rise. The ru­pee has breached the 74 mark against the US dol­lar. Ris­ing petrol and diesel prices will lead to higher in­fla­tion, which will have a huge im­pact on the In­dian econ­omy. The govern­ment’s de­ci­sion to re­duce ex­cise duty on petrol and diesel has af­fected pe­tro­leum com­pa­nies like BPCL, HPCL and IOC, which cor­rected 10-15% in two days last week. The RBI kept repo rate un­changed at 6.5% in its pol­icy meet held on Fri­day, 5 Oc­to­ber 2018. How­ever, cit­ing risks from trade wars, the MPC changed its stance from ‘Neu­tral’ to ‘Cal­i­brated Tight­en­ing’. Thus, there are no pos­i­tive trig­gers left in the mar­ket. So, trade cau­tiously and take light po­si­tions.

Among stocks,

 Bank of Bar­oda is a ‘sell’ be­low Rs.100 for a tar­get of Rs.95-90 (SL: Rs.105.50)

 ICICI Bank is a ‘sell’ be­low Rs.310 for a tar­get of Rs.305-300 (SL: Rs.315.50)  In­fosys is a ‘buy’ above Rs.718 for a tar­get of Rs.730-735 (SL: Rs.710)

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