Traders need not get unduly perturbed; bulls may make a comeback.

As long as the index sustains above 10,756 kinds of levels traders need not get unduly perturbed, suggest experts.

It was a terrible Thursday! Nifty closed August series with a loss of 2.7%.

 Nifty Future rollover stood at 55 percent for September series compared to 73% seen in the August series.

The index broke below crucial support placed at 11,200, 11000 levels. Selling pressure extended in the last one hour of the stock trading session which pushed the index below 10,950.

The final tally on D-Street – the S&P BSE Sensex fell 383 points to 37,068 while the Nifty50 closed 97 points lower at 10,948.

What is causing the panic? Expiry led volatility and risk-averse sentiment of investors across the globe pushed the Nifty below 11,000 level. Volatility in the currency market is also one factor which is keeping investors at bay for now.

The major casualty of August series is Metals and Financials. The Nifty Bank under-performs major indices this series, down 6 percent. The Nifty Metal index sheds 16 percent in August series as trade tussle fears weigh.

 The rupee gave up most of its losses to close down by 3 paise at 71.80 against the US currency on August 29 even as uncertainty over the US-China trade talks and recession fears kept investors on edge.

On the institutional front, FPIs were net sellers in Indian markets for Rs 986 cr while the DIIs were net buyers to the tune of Rs 489 cr, provisional data showed.

Big News:

Key finding of RBI Annual Report:

The number of cases of frauds reported by banks went up by 15 percent on a year-on-year basis from 2018-19, according to the RBI’s annual report for FY19.

Among bank groups, PSBs, which constitute the largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19. It was followed by private sector banks and foreign banks.

The RBI’s transfer of Rs 1,76,501 crore to the government comprised of Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting of the Central Board on Monday.

Technical View:

Nifty formed a bearish candle on the daily charts:

It broke below crucial 20-DMA and 5-DEMA on Thursday

The Nifty50 broke below crucial support placed at 20-DMA, but as long as it trades above 10,756 which was the recent swing low formed on August 26, bulls should be able to make a comeback, experts suggest.

 Two days of correction is still looking like a normal profit booking and as long as the index sustains above 10,756 kinds of levels traders need not get unduly perturbed, suggest experts.

Three levels: 10922, 11021, 11200

Stocks in news:

Beleaguered tours and travel firm Cox & Kings on Thursday said it has received approval from the Registrar of Companies (ROC) for a 3-month extension for its annual general meeting 2018-19.

Subhash Chandra-promoted Essel Group has reached an agreement with the Adani Group to sell 205 MW of operating solar assets of Essel Green Energy and Essel Infra-projects at an enterprise value of Rs 1,300 Crore.

Moody’s India unit ICRA on Thursday sacked its CEO Naresh Takkar after sending him on leave in July this year. In a notice to stock exchanges, the agency said that the decision was taken after due deliberation and was in the best interest of the company, a media report said.

Technical Recommendations:

We spoke to ICICI direct and here’s what they have to recommend:

State Bank of India : Buy| Target: Rs 318| Stop Loss: Rs 255| Upside – 16%| Time Frame 6 Months Supreme Industries : Buy| Target: Rs 1,225| Stop Loss Rs 1,049| Upside –11% Time Frame 6 months.

Source by:Moneycontrol
Professional Advisory  For Help And Support- AllianceResearch