The Nifty50 has almost rallied around 4 percent in the last two sessions and there is a possibility that it can undergo some profit booking in the next one or two sessions.
What a day for Indian markets. It looks like D-Street is celebrating early Christmas. The S&P BSE Sensex rallied over 600 points while the Nifty50 reclaimed 10700 levels.
One sector which really stood out was financials. D-Street witnessed a sharp surge in shares of banks and non-banking financial companies (NBFCs) as well as banks under PCA.
Most experts feel that the departure of the RBI governor and appointment of Shaktikanta Das as the new governor could lead to (1) relaxation in certain regulations for the banking sector (higher liquidity, relaxation of PCA framework) and (2) a more liberal monetary policy.
Sectorally, telecom, auto, and realty stocks rose 2-4 percent respectively.
Technically, Nifty formed a bullish candle for the 2nd straight day. The Nifty50 has almost rallied around 4 percent in the last two sessions and there is a possibility that it can undergo some profit booking in next one or two sessions as it is likely to test its 200-Day Moving Average (10,752).
If the index closes above 10752 levels then the next target could be around 10819. On correction, investors can go long or buy with a stop below 10560 kinds of levels.
Two key macro data came out post market hours on Wednesday
India's retail inflation eased to 2.3 percent in November, according to data released by the government on December 12.
It stood at 4.88 percent in November last year and was 3.31 percent in October.
If you remember, the central bank last week trimmed H2FY19 (October-March) inflation forecast to 2.7-3.2 percent from 3.9-4.5 percent earlier.
It pegged H1 FY20 (April-September) inflation at 3.8-4.2 percent.
On the other hand, India’s industrial production (IIP) grew 8.1 percent in October as against 4.5 percent in September, data released by the statistics office showed.
Factory output, measured by the Index of Industrial Production (IIP), is the closest approximation for measuring economic activity in the country's business landscape.
Nifty formed a bullish candle for the second day in a row
The Nifty50 rallied sharply to close near its 200-DMA, which is placed around 10,752 levels
If the index sustains above 10,752 levels, the next targets can be projected around 10,819 kind of levels
Three levels: 10560, 10752, 10950
Max Call OI: 11000, 10800
Max Put OI: 10000, 10200
We spoke to Bonanza Portfolio and here’s what they have to recommend:
TVS Motors Ltd: Buy| LTP: Rs.570.60 | Target Rs 620| Stop Loss Rs.547| Return 8%
NTPC: Buy| LTP: Rs 140.70 | Target: Rs 150.50 | Stop Loss: Rs 136| Return 7%
GE T&D Ltd: Buy| LTP: Rs. 247.35| Target Rs 270| Stop Loss Rs.237| Return 8%Disclaimer: The views and investment tips expressed by investment experts 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.