Well, there were no Monday blues for D-Street. However, I am not too sure whether I could say the same about myself. Rest assured, there was plenty of action to talk about!!
The Nifty flirted with 10900 while Sensex climbed by more than 300 points.
The final tally – The S&P BSE Sensex rallied 307 points to close at 36,270 while the Nifty50 ended 82 points up to end at 10,888.
Sectorally, the S&P BSE Energy index rose 1.5 percent, followed by Metal which was up 2 percent while on the losing side consumer durable, realty and IT stocks some bit of profit taking.
Nifty has almost reached closer to the crucial hurdle of 10,950 and its decisive break would pave the way for further up move, suggest experts.
The rupee on Monday recovered by 34 paise to close at 71.56 against the US dollar as forex market sentiments were driven by the country’s narrowing trade deficit in November as also smart gains in domestic equities.
On the institutional side, FPI were net sellers to the tune of Rs 60 crore while DIIs sold Rs 76 crore in Indian markets, according to provisional data.
Big News:
Traders are anticipating the latest 2-day meeting of the Federal Open Market Committee (FOMC) which will begin from today will see a rate cut of 25 bps
A rate hike by the US Fed is most likely factored in by traders across the globe.
However, future commentary of tightening will be something which will be watched by investors across the globe
The Fed meeting would be the key trigger for Indian market as well in the near-term as US FED
The Fed Chair would address the conference and indicate his stance on rate hikes in 2019.
Looking at current technical setup and derivative data point as of now 11000 seems difficult to break on the higher side.
Experts are expecting 10600 -11000 range for the month of December 2018 so either one should book profits if Nifty reaches near to 11000 mark
Technical View:
Nifty formed a bullish candle on the daily charts
Markets could well consolidate ahead of the US Fed outcome
And, aggressive commentary by the US Fed could result in a knee-jerk reaction in markets across the globe
Investors who went long and can remain long but at the same time be cautious and maintain a tight stop loss below 10,800 on a closing basis.
Three levels: 10750, 10844, 10950
Max Call OI: 11000, 10900
Max Put OI: 10,000, 10500
Technical Recommendations:
We spoke to HDFC Securities Ltd and here’s what they have to recommend:
Gail India Ltd: Buy| LTP: Rs 353| Target: Rs 380 | Stop-Loss: Rs 338 | Return 8%
ICICI Bank Ltd: Buy| LTP: Rs 358| Target: Rs 382 | Stop-Loss: Rs 345 | Return 7%
UBL: Buy| LTP: Rs 1303| Target: Rs 1390 | Stop-Loss: Rs 1250 | Return 7%
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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