Nifty Enters Sell Zone, As Rupee Overheats On Currency Crisis


Nifty opened 70 points gap down today at 11360 and traded below its crucial resistance zone of 11430 throughout the day. The index faced strong selling pressure around its 5 DMA (11410 approx) indicating that sellers were creating short positions around that area. The selloff in Nifty intensified towards the last hour of the day after the Rupee weakened and Nifty closed in the red, below its 10 DMA (11355 approx). Nifty Put option buyers also carried their positions in the 11300 and 11200 strike Put. The immediate downside target of Nifty is around its 15 DMA (11310 approx). Today’s selling in Nifty was triggered due to a contagion effect of the Turkish Lira on the Euro currency. The Turkish Lira has lost 37% of its value in the last 15 days. This has led to a spillover effect on the Eurozone as European Banks are overburdened with their heavy loan exposure to Turkey. The Euro currency has weakened by 4% approx in the last 30 days.

Stocks Under The Scanner
In today’s trade Gail shares rose 3.32 %, while Tech Mahindra shares rose 2.64%.In the oil and gas sector, BPCL shares dropped 5.75% in the course of the day’s trade.



The Outlook for 14th August 2018
Nifty Daily Chart Levels
In today’s trade, Nifty closed below its 10 DMA (11355 approx), signaling a strong presence of sellers in the market. The nearest resistance for the index is around its 5 DMA (11420 approx). However, Nifty will find its next support around its 15 DMA (11310 approx). Buyers will re-enter the market, only if Nifty trades above its 5DEMA high (11440 approx).



Nifty Hourly Chart Levels
In the hourly trading session, the Nifty share price has closed below its 5 HMA (11355approx). The index is likely to find stiff resistance around its 34 HMA (11430approx). However, if Nifty breaks and trades below its 100 HMA (11350 approx) it will find its next support around its hourly Lower Bollinger band (11320 approx). 





Tomorrow’s Stock Pick

Tata Elxsi
The company is a part of the Tata Group. Tata Elxsi provides design and technology services for product engineering and solutions across industries including broadcast, communications, and automotive. It has various business units like broadcast, transport, communication, industrial design, and medical.

Why Tata Elxsi 
Tata Elxsi is our star pick for tomorrow as it is has formed a symmetrical triangle in the daily charts. The nearest support for Tata Elxsi is around its Mid Bollinger band (1410 approx). If the stock trades above 1436 approx, it will find its next target around its Upper Bollinger band (1460 approx).



Large Cap & Mid Cap Gainers



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India’s benchmark Nifty opened 70 points gap down today at 11360 and traded below its crucial resistance zone of 11430 throughout the day. The index faced strong selling pressure around its 5 DMA (11410 approx) indicating that sellers were creating short positions around that area. The selloff in Nifty intensified towards the last hour of the day after the Rupee weakened and Nifty closed in the red, below its 10 DMA (11355 approx). Nifty Put option buyers also carried their positions in the 11300 and 11200 strike Put. The immediate downside target of Nifty is around its 15 DMA (11310 approx). Today’s selling in Nifty was triggered due to a contagion effect of the Turkish Lira on the Euro currency. The Turkish Lira has lost 37% of its value in the last 15 days. This has led to a spillover effect on the Eurozone as European Banks are overburdened with their heavy loan exposure to Turkey. The Euro currency has weakened by 4% approx in the last 30 days.

Stocks Under The Scanner
In today’s trade Gail shares rose 3.32 %, while Tech Mahindra shares rose 2.64%.In the oil and gas sector, BPCL shares dropped 5.75% in the course of the day’s trade.



The Outlook for 14th August 2018
Nifty Daily Chart Levels
In today’s trade, Nifty closed below its 10 DMA (11355 approx), signaling a strong presence of sellers in the market. The nearest resistance for the index is around its 5 DMA (11420 approx). However, Nifty will find its next support around its 15 DMA (11310 approx). Buyers will re-enter the market, only if Nifty trades above its 5DEMA high (11440 approx).



Nifty Hourly Chart Levels
In the hourly trading session, the Nifty share price has closed below its 5 HMA (11355approx). The index is likely to find stiff resistance around its 34 HMA (11430approx). However, if Nifty breaks and trades below its 100 HMA (11350 approx) it will find its next support around its hourly Lower Bollinger band (11320 approx). 





Tomorrow’s Stock Pick

Tata Elxsi
The company is a part of the Tata Group. Tata Elxsi provides design and technology services for product engineering and solutions across industries including broadcast, communications, and automotive. It has various business units like broadcast, transport, communication, industrial design, and medical.

Why Tata Elxsi 
Tata Elxsi is our star pick for tomorrow as it is has formed a symmetrical triangle in the daily charts. The nearest support for Tata Elxsi is around its Mid Bollinger band (1410 approx). If the stock trades above 1436 approx, it will find its next target around its Upper Bollinger band (1460 approx).



Large Cap & Mid Cap Gainers



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