Investors who are long should keep a strict stop loss of 11,340. On the upper side Nifty will face hurdle at 11500 level which is also a psychological hurdle.

What a week it was for Indian equity markets. Benchmark indices consolidated in a narrow but eventually closed higher for the week. The rupee, on the other hand, witnessed a steep depreciation against the dollar. The currency hit a fresh new low of 70.39 this week.

Crude oil prices declined this week which remained a key positive for emerging markets.

Overall, analysts remain cautious on the Indian markets in the short-term due to a falling rupee, a widening trade deficit, and US-China trade wars.

With earnings season coming to an end there are no fresh triggers for markets in this truncated week.

Things which will be in focus: Currency/rupee, trade war, FOMC meeting’s minutes, movement of crude oil as well as a listing of CreditAccess Grameen.

On the technical front, Nifty has strong support at 11,400-11,415 levels.

A break below will take it to 11366-11340 level and possibly towards 10250.

Investors who are long should keep a strict stop loss of 11,340. On the upper side Nifty will face hurdle at 11500 level which is also a psychological hurdle.

Big News:

India Inc has ended the last leg of its earnings season for the quarter ended June 2018.

The healthy performance was seen from Consumption, and Commodity-oriented sectors| A low base of Q1FY18 indeed provided some succor to several sectors.

The proportion of companies reporting 30 percent+ PAT growth (at 41 percent of MOSL Universe) is the highest since March 2010, partly aided by the low base of Q1FY18 in several consumption-oriented sectors, said a Motilal Oswal report.

Key trends of Q1FY19:

[1] Asset quality woes of PSU and Corporate Banks appear to be stabilising.

[2] Consumption – both urban and rural – remains strong, with companies from FMCG, Auto, Durables and Retail pointing toward a healthy demand outlook.

[3] Cyclicals continue leading from the front, with Metals drove incremental earnings.

[4] IT delivered a healthy quarter, with improved commentaries on demand in the US BFS market.

[5] In Healthcare, pricing pressure in US generics is stabilizing even as earnings downgrades haven’t abated.

Technical View:

Nifty formed a bullish candle on the daily charts and Bullish Engulfing Candle on a weekly chart which implied that bulls are still in control.

Nifty has to hold above 11450 zones to extend its gains towards new high territory at 11500 and then 11550 zones while on the downside major support seen at 11400 zones.

Three levels: 11340, 11500, 11550

Max Call OI: 11500, 11600

Max Put OI: 11000, 11300

Stocks in news:

Infosys Ltd today announced that Chief Financial Officer M D Ranganath has stepped down to pursue “professional opportunities in new areas”. His resignation was accepted by the Infosys Board on Saturday after 18 years of service.

L&T to consider buyback proposal at a board meeting on August 23

Indiabulls Real Estate closes buyback offer, buys 2.6 crore shares for Rs 443 crore

BSE, NSE to suspend trading in Gitanjali Gems, Amtek Auto from September 10

Technical Recommendations:

Here’s what Religare Broking Ltd have to recommend:

Dewan Housing Finance: Buy| LTP: Rs 670.35| Target: Rs 760| Stop Loss: Rs 630| Return: 13%

Sun Pharma : Buy| LTP: Rs 623.50| Target: Rs 700| Stop Loss: Rs 590| Return: 12%

L&T Finance Holdings: Buy| LTP: Rs 181.75| Target: Rs 198| Stop Loss: Rs 175| Return: 9%

For more such news & to get Free Stock Tips from Ripples Advisory, visit >> Commodity MArket Tips 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.