A morning walk down Dalal Street | Support for Nifty placed at 11,000; watch out for IIP data

Indian markets hit a 2-month low on Thursday weighed down by weak global cues, muted earnings from India Inc., and RIL downgrade by Morgan Stanley.

The final tally on D-Street – the S&P BSE Sensex fell 230 points to 37,558 while the Nifty50 dropped 57 points to close at 11,301.


In terms of sectors, buying was seen in IT, consumer durables, realty, FMCG and auto stocks while selling pressure continued in energy, metals and telecom names.

On the macro front, investors would watch out for Industrial Production data for the month of March.

Falling for the fourth straight session, the rupee depreciated by 23 paise to 69.94 against the US dollar May 9 on unabated foreign fund outflows amid simmering US-China trade tensions.

On the institutional front, FPIs were net sellers in Indian markets for Rs 655 crore while DIIs were net buyers to the tune of Rs 677 crore, provisional data showed.

Big News:

As many as 55 companies will declare its results for the quarter ended March which include names like Eicher Motors, Allahabad Bank, Canara Bank, HT Media, IDFC First Bank, L&T, PVR, State Bank of India, Syndicate Bank, Venky’s, and V-Mart, etc. among others.

Eicher Motors: PAT likely to fall by 16% YoY to Rs 542 crore

SBI: Bank is likely to report a profit of Rs 3649 crore

L&T: PAT likely to grow by 16% YoY to Rs 3475 crore

(All the estimates from Motilal Oswal)

Technical View:

Nifty forms a bearish candle for the seventh day in a row

The index managed to hold on to 11300 levels

The way we bounced back from 100-days EMA suggest that the downside could be limited from here

The next support for the index is placed at 11100 levels while on the upside resistance is placed at 11500 levels

Three levels: 11255, 11357, 11500

Max Call OI: 12000, 12500

Max Put OI: 11000, 11500

Stocks in news:

HCL Technologies has registered a net income of Rs 2,568 crore, up 15.3 percent year-on-year for the quarter ended March 31, 2019. The profit fell 1.7% sequentially though.

Apollo Tyres May 9 reported 66.41 percent plunge in consolidated net profit at Rs 83.99 crore for the fourth quarter of 2018-19, hit by Rs 100 crore write-off related to IL&FS.

Consumer durables firm Voltas posted a 27 percent drop year-on-year (YoY) in its March quarter (Q4) net profit at Rs 141.74 crore. This was on account of flat growth in its revenue.

Technical Recommendations:

We spoke to IIFL and here's what they have to recommend:

Britannia Industries: Buy| Target: Rs 2870| Stop Loss: Rs 2610| Upside 7.5%

Hindustan Unilever: Buy| Target: Rs 1775| Stop Loss: Rs 1670| Upside 4.5%

Divi’s Laboratories: Sell May Futs| Target: Rs 1553| Stop Loss: Rs 1662.5| Downside 5%

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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