Market (Page 7)

The Wall Street’s massive sell-off overnight over the fears of a coronavirus pandemic will be a major trigger for the domestic indices today.

Fears of a pandemic escalated after the coronavirus spread to Spain and dozens of countries, from South Korea to Italy, accelerated emergency measures while Iran’s virus death toll rose to 16. Adding to recent fears was an alert from the US Centers for Disease Control and Prevention on Tuesday warning Americans to prepare for the spread of coronavirus in the United States.

The Dow and the S&P 500 tumbled 3 per cent on Tuesday in their fourth straight day of losses as investors struggled to gauge the economic impact. The Nasdaq Composite also dropped 2.77 per cent.

Today’s session might also see an increase in volatility ahead of the expiry of February series derivative contracts tomorrow.

Breakdown below 11,750 would aggravate the selling pressure in Nifty

Nifty has reached a crucial support zone 11,750-11,783, which happens to be the unfilled gap formed on 4th Feb 2020. Low made on 25th Feb is exactly at the upward sloping trend line adjoining bottoms of 19th Sep 2019 and 3rd Feb 2020. Violation of 11,750 support may drag Nifty towards the 200 DMA support, currently placed at 11,684. The previous bottom on the Nifty daily chart is placed at 11,614, which can also act as far support.

Stock recommendation:

BUY ALKEM LAB (2640) | Target: Rs 2,800 | Stop-loss: Rs 2,500

Stock price has been consolidating for last 10 sessions. Primary trend of the stock is bullish with higher tops and higher bottoms on the weekly charts. Short term moving averages are trading above long term moving averages, indicating