**Hadrien Mendonca

IIFL**

After falling for three consecutive days, the index finally saw some relief on Tuesday followed with marginal gains on Wednesday as 200-DEMA which was placed around 10,108 was respected, but it closed below 200-DMA which is placed at 10,168.

The Nifty closed above the average (200-DEMA) for the second consecutive session. However, the stance has not yet changed as the selling pressure re-emerged after the Nifty rallied almost 180 points.

The 10,220-10,230 zone is exactly the ‘Falling Wedge’ declining trendline resistance from where Nifty saw some profit-taking.

This price behaviour indicates that it is still very evident that every small upswing is being utilised by traders to either trim positions or build fresh shorts.

Going forward, we expect the Nifty to consolidate around its 200-DMA before we resume the downtrend.

On the flipside, the Nifty could see a ‘Falling Wedge’ pattern breakout once the index manages to break past the 10,250 zone and closes above the same. Till then, the strategy remains ‘sell on rallies’.

The Nifty bank, on the other hand, made an attempt to surpass its 200-DEMA but has failed to do so. The immediate support for the index is now seen around the 24,000 psychological mark.

**Here is a list of stocks that could possibly outperform and deliver decent returns.**

Larsen & Toubro Infotech (LTI): BUY| Target 1450| Stop Loss 1310| Returns 7%

The midcap IT stocks are seeing good demand and LTI has shown signs of a reversal after falling from its all-time high of Rs 1549 hit on February 22, 2018\. The stock has formed a Bullish engulfing pattern on the daily charts and has seen good follow up buying too.

In addition, LTI has also found support around its 50-DEMA and has bounced back. Positive crossovers on other oscillators further confirm the probability of an upswing from here on for LTI

Jubilant FoodWorks Ltd: BUY| Target 2320| Stop Loss 2159| Returns 5%

The stock has been a complete stand out performer and has sustained its upward trajectory even when markets have sharply corrected.

The stock has broken out from its four-day consolidation pattern seen on the daily chart. The price outburst has been accompanied by a smart uptick in traded volumes too.

The relative strength indicates that the current upswing is likely to extend further. We expect Jubilant FoodWorks to make a dash towards its all-time high of 2320 levels in the medium term.

M&M Financial : BUY| Target 485| Stop Loss 429| Returns 8.5%

The stock has been consolidating in a narrow range for over six weeks and has finally broken out from the inverse head and shoulder pattern on the daily chart.

The stock has also convincingly closed above the short term as well as medium-term moving averages. Volumes have backed up the price outburst seen which further accentuates out bullish stance on the stock.

A selloff in the last hour, amid a volatile day overall, forced the market to end on a negative note on Thursday. Indices failed to sustain any recovery that was visible in the past two sessions. Additionally, a hike of key interest rates by US Federal Reserve by 25 basis points also aided the bearish sentiment on D-Street.  

Having said that, Sensex managed to end the day above 33,000, while the Nifty ended just above 10,100.

In broader markets, the midcaps witnessed a day of underperformance to the benchmarks, with the Nifty Midcap closing with a cut of 1 percent.

All sectoral indices have ended in the red, with maximum cuts seen in Nifty PSU bank index trading over 2 percent lower. Nifty IT and Nifty Auto indices followed PSU banks and lost up to 1 percent.  

Meanwhile, among index heavyweight stocks, ICICI Bank and State Bank of India were the biggest laggards for the second day in a row, while Reliance and HDFC Bank were among the top index gainers.

The Nifty50 is expected to open flat-to-higher on Wednesday tracking positive trend seen in other Asian markets. The Nifty50 closed 30 points higher at 10,124 on Tuesday.

Trends on SGX Nifty indicate a flat to positive opening for the broader index in India, a rise of 4 points or 0.04 percent. Nifty futures were trading around 10,162-level on the Singaporean Exchange.

US stocks advanced modestly on Tuesday as higher oil prices lifted the energy sector, but another slump in Facebook Inc shares curbed gains. Those gains helped the S&P energy index rise 0.84 percent, making it easily the best performing of the 11 major S&P 500 sectors, Reuters reported.

The Dow Jones Industrial Average rose 116.36 points, or 0.47 percent, to 24,727.27, the S&P 500 gained 4.02 points, or 0.15 percent, to 2,716.94 and the Nasdaq Composite added 20.06 points, or 0.27 percent, to 7,364.30.

Asian markets gained early in the session on Wednesday, with markets focused on the Federal Reserve after it kicked off its March meeting. The Kospi traded higher by 0.17 percent while the junior Kosdaq edged up by 0.4 percent, CNBC reported.

**Moneycontrol News**

**Eris Lifesciences Limited: BUY| Target Rs895| Stop Loss Rs750| Return 11%**

Traders can accumulate the stock in a range of 805-820 levels for the target of 895 with a stop loss below 750. 

**Future Lifestyle Fashions Limited: BUY| Target Rs464| Stop Loss Rs380| Return 13%**

Traders can accumulate the stock in a range of 410-415 for the upside target of 464 and a stop loss below 380. 

**Chambal Fertilisers & Chemicals Limited: BUY| Target Rs187| Stop Loss Rs152|Return 13%**

Traders can accumulate the stock in a range of 165-168 levels for the upside target of 187 with a stop loss below 152.

The S&P BSE Sensex which rallied over 300 points in trade on Wednesday failed to hold on to momentum and closed with gains of just over 100 points. The Nifty failed to close above its crucial 200-days exponential moving average (DEMA) for the second day in a row.

Benchmark indices were off day's high in the afternoon as investors turned cautious ahead of the outcome of US Federal Reserve's policy meeting due later today. The S&P BSE Sensex and Nifty Bank slip over 200 points from intra-day highs

The Nifty slips 72 points from its intra-day high of 10,227.30 to close below 200-DMA. But, the market breadth turns in favour of declines at the close. The index closed 30 points higher at 10,155 but before its crucial 200-DEMA placed around 10,165\.

The S&P BSE Sensex reclaimed Mount 33K as the index closed 139 points higher at 33,136\. It rose to an intraday high of 33,354.93 and an intraday low of 33,070.53\.

The S&P BSE Midcap index closed 0.2 percent higher while the S&P BSE Smallcap index rose 0.3 percent.

On the sectoral front, telecom, realty, capital goods, finance, power stocks rallied while metals, healthcare, and basic material stocks saw some more profit booking.

The Nifty50 is expected to open flat-to-lower on Tuesday tracking muted trend seen in other Asian markets and retest its crucial support around 200-day exponential moving average (DEMA) placed around 10,090\. The Nifty50 closed 100 points lower at 10,094 on Monday.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 26 points or 0.26 percent. Nifty futures were trading around 10,089-level on the Singapore Stock Exchange.

US stocks dropped on Monday, with the S&P and Nasdaq suffering their worst day in just over five weeks, as concerns over increased regulation for large tech companies was spearheaded by a plunge in Facebook shares, Reuters reported.

The Dow Jones Industrial Average fell 335.6 points, or 1.35 percent, to close at 24,610.91, the S&P 500 lost 39.09 points, or 1.42 percent, to 2,712.92 and the Nasdaq Composite dropped 137.74 points, or 1.84 percent, to 7,344.24.

Asian markets were weaker on Tuesday, as the pullback on Wall Street overnight weighed on sentiment early in session. The Nikkei 225 fell 1.04 percent, or 223.21 points, tracking the declines seen stateside overnight while the broader Topix index edged lower by 0.8 percent as all but two sectors slipped into negative territory, CNBC reported.

On the first day of the new week, the Nifty closed below its previous low and also below much talked about the 200- day exponential moving average (DEMA), which is currently placed at 10,164 levels.

It also broke the support of the upward sloping trend line adjoining the bottoms of June 30, 2017 and September 29, 2017\.

Moreover, Nifty is maintaining the bearish pattern of lower tops on the daily charts, and now the recent top of 10,479 would act as a strong resistance for the medium term.

From the derivative side, we have seen a short build up in the Nifty and Bank Nifty Futures’ during the last couple of days with sharp fall in the Nifty and Bank Nifty.

Moreover FIIs also created net short positions in the Index Futures’ and Stock Futures’ segment during the last week

Put call ratio also fell sharply to 1.04 level from 1.23 levels during the last couple of days on the back of aggressive Call writing at 10,200-10,300 levels, indicating that on the higher side Nifty would find strong resistance in the vicinity of 10,200-10,300 level.

On the lower side Puts have been written at 9,900-10,000 level. Considering the evidence discussed above, our advice would be to remain short till Nifty closes above 10,300 levels. On the lower side Nifty may find strong support in the vicinity of 9,900-10,000 level

Finally! Some green in D-Street but the S&P BSE Sensex failed to close above Mount 33K while the Nifty50 closed above 10,100 but below its 200-DEMA placed around 10,163 on Tuesday.

After falling for five consecutive sessions, the Indian market witnessed some bit of value buying along with short coverings at lower levels. However, the way, Nifty corrected from its intraday high, shows that the pain may not be over for markets.

The S&P BSE Sensex closed 73 points higher or 0.22 percent at 32,996.76 led by gains in HDFC (up 1.3%), Infosys (up 1.3%), TCS (up 1.07%), L&T (up 1.09%), Tata Steel (up 3.1%), and Sun Pharma (up 2.2%).

The Nifty50 closed 30 points higher or 0.3 percent at 10,124, led by gains in Bharti Infratel (up 5%), Tech Mahindra (up 3.8%), Eicher Motors (up 3.4%), Tata Steel (up 3.1%), and Sun Pharma (up 2.2%).

IT stocks and HDFC led the recovery on D-Street while ICICI, HDFC Bank & RIL kept gains in check. Market breadth remains in favour of declines; advance-decline ratio at 1:2.

Among the sectors: IT, telecom, auto, power, and healthcare stocks led the decline while oil & gas, metals, banks, and PSU stocks saw some bit of selling pressure.

A mixed trend was seen in the broader market as the S&P BSE Smallcap index slipped 0.2 percent while the S&P BSE Midcap index was up 0.2 percent.

A volatile week came to an end but one factor which will weigh on the trading community is that the Nifty is now trading below its crucial short-term moving averages. It closed below its 100-day exponential moving average (DEMA) which was placed around 10,405 for the week ended March 16.

The Nifty50 fell from an intraday high of 10,478 recorded on March 13 to close the week at 10,195, down 0.3 percent for the week. The index closed below is short-term moving averages on the weekly charts as well which does not augur well for the bulls.

The index which started the week on a high note consolidated throughout the week and closed with a big bear candle on Friday.

The heavy sell-off on Friday resulted in a decent cut from weekly highs to conclude proceedings below the 10,200 mark, on the weekly basis, for the first time after December 01, 2017.

Bears ruled the D-Street for the third consecutive day in a row which pushed the Nifty below its crucial long-term moving average of 200-DEMA placed for the first time since November 2016\. The Nifty has also registered its fresh low for the year 2018 on Monday.

The main culprit which dragged down Nifty was metals, telecom, realty, smallcap, midcap, oil & gas and PSU banking stocks, as well as IT. Well, frankly speaking, everything seems to be covered in one color and that is ‘RED’.  

The Nifty50 ends below 10,100 mark after breaching 200-day exponential moving average (DEMA) placed on 10,114 as on 19 March.

The S&P BSE Sensex closed 252 points lower or 0.76 percent at 32,923 weighed down by losses in Infosys, ICICI Bank, Bharti Airtel, HDFC, RIL, SBI, and HDFC Bank.

The Nifty50 ended 100 points lower or 0.99 percent at 10,094 weighed down by losses in HCL Technologies, Tata Steel, Bharti Airtel, Tech Mahindra, and BPCL.

Broader market underperformed. The S&P BSE Smallcap index closed 1.98 percent lower while the S&P BSE Midcap index ended 1.58 percent down.