A morning walk down Dalal Street | Bulls to take control only if Nifty closes above 10774

What a day for Indian markets! Global cues suggested a muted opening but bulls managed to take control in the second half of the trading session despite muted trend seen in Asian as well as European markets.

The final tally: The S&P BSE Sensex rallied 159 points higher at 35,513 while the Nifty50 closed 57 points higher at 10,685.

A rally among PSU banks, energy names as well as IT boosted the market while on the losing front, healthcare, metal, and telecom stocks some bit of selling pressure.

After Morgan Stanley report on India which lifted sentiments, global investment firm HSBC raised India rating to neutral from underweight as investor holdings are very low on Tuesday.

Valuations are more reasonable and HSBC sees strong earnings growth in 2019

Well, Tuesday session came as a breather but volatility will continue in the markets given the uncertainty looming over outcome of state elections.

Although correction in crude oil prices and rebound in ruppe against dollar has provided a breather.

Rupee rises 8 paise to 70.79 against US dollar on easing trade worries.

FPI bought Rs 811 crore in Indian capital markets while DIIs bought Rs 31 crore on Tuesday, according to provisional data.

Global financial services firm HSBC has upgraded its rating on Indian equity market to “neutral” from “underweight” on the back of recent corrections and more attractive valuations.

Two crucial factors which led to the fall were rise in crude oil prices as well as free fall in rupee.

Oil prices have lost almost a third of their value since early October while rupee is stable around Rs 70/USD

They observed that MSCI India EPS (earnings per share) growth consensus expectations were for 18.8 percent in 2018 and 24 percent in 2019, which meant India was one of the fastest-growing markets across the region, said a report.

Lupin's Chief Financial Officer Ramesh Swaminathan has announced his resignation on November 27. Swaminathan was with Lupin for close to 12 years and was instrumental in helping the company grow sales to Rs 15,560 crore in FY18 from Rs 2,773 crore in FY08.

Yes Bank promoters have laid down nine conditions for a mutual settlement of the family dispute ahead of the December 13 board meeting to discuss the appointment of Rana Kapoor’s successor. Moody's downgrades Yes Bank's ratings, changes the outlook to negative citing governance issues

Nifty formed a bullish candle on the daily charts

It closed above 10600 levels for the second day in a row; however, bulls would only be able to take control once Nifty50 close above 10774 levels which is also the 200-DMA

In case if Nifty50 manages a breakout above 10774 levels then a higher target towards 11069 can be expected. However, in between, 10840 shall remain a critical hurdle

On the downside, a close below 10489 shall trigger fresh leg of a downswing.

Max Call OI: 10700, 10800

Max Put OI: 10500, 10600

We spoke to SMC Global Securities and here’s what they have to recommend:

Cummins India Limited: Buy| Target: Rs 870| Stop Loss: Rs 750| Return 9%

PVR Limited: Buy| Target: Rs 1550| Stop Loss: Rs 1350| Return 8%

State Bank of India: Buy| Target: Rs 305| Stop Loss: Rs 272| Return 7%