Street Signs: Nifty at 20K, Musk’s visit postponement impact on auto stocks

The consensus view among technical analysts is that a decisive break of this level could see the index slipping to the 21,700 level

Sundar Sethuraman Khushboo Tiwari

Will Nifty hold above 22,000?

The 20,000 mark is seen not just as an important psychological mark for the benchmark Nifty50 index, but also a crucial support. The consensus view among technical analysts is that a decisive break of this level could see the index slipping to the 21,700 level. Meanwhile on the upside, the Nifty faces resistance at 22,300, which is its 20-day exponential moving average (Dema). “The market conditions would remain tentative till there is global uncertainty, and that could be seen on technical charts too. As far as levels are concerned, the psychological mark of 22,000 withholds the intermediate support, followed by a strong support of the 21,800-21,700 sub-zone. On the higher end, the 20-Dema placed at 22,300, followed by a bearish gap of 22,430-22,500, is likely to act as a daunting task in the near period. An authoritative breakthrough could only re-strengthen the lost momentum for the bulls,” said Osho Krishan, senior analyst, technical & derivative research, Angel One. After hitting a low of 22,180, the Nifty closed at 22,147 on Friday.

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Musk’s India visit postponement may weigh on auto stocks

Shares of auto ancillary companies could come under pressure with Elon Musk postponing his India visit. In the run-up to the visit, originally scheduled for April 21 and 22, these shares had rallied on optimism that the Tesla boss would announce the setting up of a factory in India, at a $3 billion investment. Some of these stocks are Sandhar Tech, SKF, Sona BLW Precision, Suprajit Engineering and Varroc Engineering. “The postponement of the visit could lead to a delay in announcements around the much-awaited Tesla factory. This could lead to profit-taking and take some sheen off the auto ancillary stocks in the nearterm,” said an analyst who did not wish to be named.

Going after the impersonators

Amid cases of scamsters impersonating important people through use of new-age technology to lure gullible investors, the Securities and Exchange Board of India (Sebi) has directed market intermediaries to submit periodical reports to the National Securities Depository (NSDL) on instances of impersonification, fraudulent activity, or unauthorised use of logo and branding. “Upon identifying any unauthorised app, website, social media profile, or post impersonating your entity, take steps to take down such app/website/social media posts by filing police complaints/public notices,” said Sebi in an advisory issued to intermediaries. The action comes at a time when deepfake videos of NSE Managing Director (MD) & Chief Executive Officer (CEO) Ashishkumar Chauhan and BSE MD & CEO Sundararaman Ramamurthy recommending stocks and giving investment tips have been circulated by miscreants.