A morning walk down Dalal Street | Bulls can take charge only if Nifty close above 11,300 convincingly

Higher VIX suggests that volatile swings could continue in the market ahead of the election outcome.

A terrific Thursday was in store for investors as bulls took control of D-Street from the word go on May 16 thanks to stable cues. The index recovered most of the losses in the previous trading session.


Bulls pushed the index back above 11,250 which is the 100-day exponential moving average (EMA), which is a positive sign.

For the bulls to completely take charge, the index has to close above 11,300 convincingly, suggest experts.

Among sectors the S&P BSE Oil & Gas rose 1.5 percent, followed by the S&P BSE realty that gained 1.3 percent, and the S&P BSE Power that was up 1.3 percent.

Volatility cooled down slightly but it is still near 4-year high. India VIX fell down 1.01 percent at 28.37. However higher VIX suggests that volatile swings could continue in the market ahead of the election outcome.

It is the third straight session of gain for Rupee. The rupee surged by 31 paise to close at 70.03 against the US dollar on Thursday amid a sharp rebound in the domestic equity markets, even as oil prices firmed up.

On the institutional front, FPIs were net sellers in Indian markets for Rs 953 crore while the DIIs were net buyers to the tune of Rs 948 cr, provisional data showed.

Big News: As many as 84 companies will declare their results for the quarter ended March later today which include names like Arvind, Bajaj Auto, Balkrishna Industries, CESC, Corporation Bank, City Union Bank, EIL, IOC, Dr. Lal Pathlabs, Sobha Ltd, UPL, and ZEE Learn Ltd.

Bajaj Auto: PAT likely to fall by 6% YoY to Rs 998 crore

EIL: PAT likely to grow by 35% to Rs 122 crore

IOC: PAT likely to fall by 28% YoY to Rs 3734 crore

(All estimates are from Motilal Oswal)

Technical View: Nifty forms a bullish candle on daily charts

Bulls pushed the index back above 11,250 which is the 100-day exponential moving average (EMA), which is a positive sign.

Nifty respected 100-day moving average placed at 11,138 for the fourth consecutive day in a row to reclaim 100-day and 5-day EMA.

However, for the bulls to completely take charge, the index has to close above 11,300 convincingly, suggest experts.

Three levels: 11100, 11300, 11500

Max Call OI: 12000, 12500

Max Put OI: 11000, 11500

Stocks in news: Bajaj Finserv March quarter Profit after tax (PAT) increased by 57 percent YoY basis to Rs 1,176, compared to Rs 748 crore seen in the year-ago period.

Technology firm KPIT has posted a consolidated net profit of Rs 30.9 crore and revenue from operations of Rs 501.2 crore for the quarter ended March 31.

The US Court of Appeals for the Federal Circuit ruled in favor of Dr. Reddy's and its co-defendants Mylan and Lupin in litigation related to patents of arthritis pain reliever drug Vimovo.

Life sciences provider TAKE Solutions May 16 recorded consolidated net profit at Rs 27.06 crore for the fourth quarter ending March 2019, compared to Rs 45.49 crore registered in the year ago.

Technical Recommendations: We spoke to ICICIdirect and here's what they have to recommend:

Tata Consultancy Services: Buy| LTP: Rs 2111| Target: Rs 2370| Stop Loss: Rs 1955| Upside 12% | Time Frame 6 months

State Bank of India: Buy| LTP: Rs 316| Target: Rs 351| Stop Loss: Rs 290|Upside – 11%| Time Frame 6 months

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.

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