A morning walk down Dalal Street: Nifty likely to face stiff resistance around 11,171

Business News

Bulls overtook D-Street for the second consecutive day in a row as Sensex hit a fresh record high of 36,902.06 on Tuesday while Nifty is just 40 points shy of its fresh record high.

The index is likely to face stiff resistance around 11,171 levels and 11,200 levels.

The volumes are also on the rise, which indicates that the rally is likely to sustain at higher levels. The overall structure suggests that the index is set for the extension on the upside.

What came as a pleasant surprise was rally in the broader market| The S&P BSE Midcap index rose 1.7 percent while the S&P BSE Smallcap index rose 2.2 percent

From short term perspective, the index looks poised to march towards 11450.

On the other hand, 10,950-10,925 shall act as a crucial support zone.

Stable crude, as well as currency, is acting as a tailwind for Indian markets

On the institutional front, FPI bought Rs 104 crore in Indian equity markets while DIIs purchased Rs 513 crore

Big News:

As many as 56 companies will declare their results for June quarter on Wednesday. Prominent names like L&T, Hero MotoCorp, Bharti Infratel, Jubilant Foodworks, Karur Vysya Bank and PVR will dictate the trend on D-Street

L&T: PAT likely to grow by 63 percent YoY to Rs 1455 crore

Hero MotoCorp: PAT likely to grow 8.3 percent YoY to Rs 989 crore

Jubilant Foodworks: PAT likely to grow by 23 percent YoY to Rs 2 crore

PVR: PAT likely to grow 14.8 percent YoY to Rs 1.2 crore

Technical View:

Nifty formed a bullish candle on the daily candlestick charts

The index has to continue to hold above 11,080 zones to extend its gains towards lifetime time high of 11,171 then 11,200 zones.

On downsides, it looks critical for the index to sustain above 11,000 on a closing basis.

Three levels: 11100, 11171, 11200

Max Call OI: 11200, 11100

Max Put OI: 11000, 10900

Technical Recommendations:

We spoke to SMC Global Securities and here’s what they have to recommend:

Exide Industries Limited: Buy| Target: Rs 303| Stop Loss: Rs 252| Return 12 percent

Apollo Tyres Ltd: Buy| Target: Rs 255| Stop Loss: Rs 300| Return 11 percent

ITC Limited: Buy| Target: Rs 312| Stop Loss: Rs 267| Return 10 percent

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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