The index slipped below crucial short-term moving average and the next crucial support is now placed at 11,250. On the other hand, for bulls to take control, Nifty50 has to reclaim 11,520 levels.

Monday blues for sure on D-Street. The S&P BSE Sensex slipped over 500 points while Nifty50 broke below two crucial support levels placed at 11,500 and 11,400.

The index also broke below three short-term moving averages placed at 5,13 and 20-EMA

Next crucial support to watch out is 11,250 (September 12) while on the upside 11,520 is crucial for bulls

The selloff in Asian markets due to trade war fears, a weaker rupee, and a possible dissatisfaction of investors to rupee’s measures by the government pulled the indices lower.

Bears took charge of D-Street pushing the index lower.

A big disappointment came when reports suggested that Goldman Sachs has downgraded its rating on India

Goldman Sachs, which was strategically overweight on India since March 2014, has turned slightly cautious towards Indian market in 2018 and lowered its investment view to market weight from overweight earlier.

Big News:

Goldman Sachs downgrade was also one big factor which dented investor sentiment

Given elevated valuations and recent strong performance, Goldman believes that the risk-to-reward for India equities is less favourable at current level.

Commenting on Nifty target levels, Goldman said that market is likely to consolidate heading into the elections and the 12-month target is at 12,000 as political uncertainty wanes and earnings accrue.

Indian equities are most expensive in Asia (19x Cap-wgt/27x Avg PE) and trading at a record 58 percent premia to the region.

Sectorally, the global investment bank has upgraded defensive and exporters.

It is overweight on banks, tech, and metals. The key downside risks remain a less stable government.

Technical View:

Nifty formed a Bearish Belt Hold kind of pattern on daily charts

The index slipped below crucial short-term moving average and the next crucial support is now placed at 11,250 which was the swing low formed on September 12.

On the other hand, for bulls to take control, Nifty50 has to reclaim 11,520 levels.

Three levels: 11250, 11450, 11520

Max Call OI: 11800, 11600

Max Put OI: 11400, 11000

Technical Recommendations:

Here’s what HDFC Securities have to recommend:

Jindal Steel & Power: Buy| LTP: Rs 238 | Target: Rs. 257| Stop loss: Rs 225 | Return: 8%

Tinplate Company of India: Buy| LTP: Rs 196.20 | Target Rs 225| Stop loss: Rs 182 | Return: 15%

Oracle Financial Services Software: Buy| LTP: Rs 4503| Target Rs 4950 | Stop loss: Rs 4250 | Return: 10%

For more such news & to get Free Stock Tips from Ripples Advisory, visit >> Free Equity Tips On Mobile or give a missed call at @9644405056

Disclaimer:- The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.