Sensex pares losses to gain 22 points; Dr Reddy's, Infosys, TCS top gainers
Nifty Outlook By HDFC Securities
Index is still trading below the key resistance of 10900 i.e. below 0-b or 0-2 trendline which is a shield for current bearish setup. [Index is trading below the stiff resistance of 0-b or 0-2 trendline which is a shield for prevailing bearish setup. The level comes around 10880; so as long as index stays below 10900 the bearish picture remains intact. As per our preferred view index has begun the major falling leg i.e. “wave iii/c” and price is in the internals of this wave.
Initial downside target remains same as 10300. Overall continue (maintaining from 10740) with negative stance for initial target of 10300. This view is valid as long as index stays below 10900 (Close). The expected bounce has provided shorting opportunity, hold shorts with strict stoploss of 10900.
10,800 and 26,500 are going to be deciding points in Nifty and BankNifty respectively.
In case of Nifty, 10,750-10,850 is going to be the small trading range, while 10,700-10,900 will be the bigger range for trade.
When it comes to BankNifty, the small trade range stands at 26,450-26,650 and the bigger range will be between 26350-26750.
Dr Reddy's share price: The US Food and Drug Administration on Friday approved the first generic versions of Suboxone (buprenorphine and naloxone) sublingual film (applied under the tongue) for the treatment of opioid dependence. The generic version will be sold by partners Mylan NV and Dr Reddy's Laboratories SA. In another bews, Dr Reddy's could be removed from Sensex in the likely reconstitution.
1) PVR (Buy)
Target: Rs 1465
Stoploss: Rs 1410
- Race 3 is due to release today
- The company expected to report robust earnings in June quarter
The Sensex and Nifty snapped a three-session winning streak to end lower on Thursday, tracking Asian peers, a day after the US Federal Reserve raised interest rates and struck a more hawkish tone in forecasting a slightly faster pace of tightening. The Fed raised its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.75 per cent to 2 per cent and forecast two additional hikes by the end of this year, compared with one previously.
The Sensex ended at 35,599, down 139.34 points, while Nifty closed at 10,808, down 48.65 points. In the broader market, the BSE Midcap and the BSE Smallcap indices remained little changed.