A morning walk down Dalal Street | Market likely to remain volatile ahead of MPC meet outcome with support at 10,650

It was indeed a historic month for Indian markets as Nifty and Sensex breached their respective resistance levels on the upside.

The S&P BSE Sensex reclaimed Mount 36K while the Nifty50 had a touch-and-go-moment with 10900 levels.

Most experts feel that this week is likely to remain volatile ahead of MPC meet outcome and outcome of state elections which is due next week.

On the higher side, Nifty might face some resistance around 10930 while supports are placed at 10744, and 10700 levels.

Overseas investors have pumped Rs 12,260 crore into the Indian capital markets in November, making it the highest inflow in 10 months due to falling crude oil prices and sharp rupee appreciation.

Big News:

Well, the big news is from the macro front.

GDP growth slows down to 7.1 percent in September quarter, down from 8.2 percent in the previous quarter as high fuel prices, a sliding rupee and relatively weaker rural demand seem to have applied the brakes on the economy.

The core GVA has slowed down significantly from 8.6 percent to 6.6 percent. This indicates that there is a perceptible demand slow-down for the private sector. This trend might continue in Q3 because of market volatilities.

Technical View:

Nifty formed a bullish candle on the weekly scale.

Nifty has to continue to hold above 10777-10800 zones to extend its move towards psychological 11000 then 11176 levels.

On the downside, major support is seen at 10650 levels.

Three levels: 10650, 10700, 10930

Max Call OI: 11000, 11500

Max Put OI: 10000, 10200

Stocks in news:

The country's largest lender State Bank of India (SBI) has put up for sale three of its non-performing loan accounts to recover dues of Rs 2,110.71 crore.

Tata Motors on December 1 reported a 3.8 percent decline in domestic sales to 50,470 units in November as compared to 52,464 in the same month last year.

The country's largest two-wheeler maker Hero MotoCorp on December 1 reported a marginal increase in its sales to 6,10,252 units in November.

Maruti Suzuki India Ltd, India’s largest passenger carmaker, on Saturday reported a marginal drop in domestic sales of passenger cars in November to 129,837 units, against 130,732 a year ago.

Technical Recommendations:

We spoke to 5nance.com and here’s what they have to recommend:

V-Guard Industries Ltd: Buy | Target: Rs 221 | Stop-Loss: Rs. 195 | Return 5%

IndusInd Bank: Buy| Target: Rs 1714 | Stop-Loss: Rs 1595 | Return 3%

Sun Pharmaceutical Industries: Sell| Target: Rs. 469 | Stop-Loss: Rs. 502| Downside: 3%

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