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Last Updated : Nov 28, 2019 07:11 AM IST | Source: Moneycontrol.com

Early on D-Street | Bulls likely to remain in charge as long as Nifty holds 12,000

Experts are of the view that the market is likely to remain volatile ahead of November expiry on Thursday but it is still "buy on dips" market as long as Nifty trades above 12,000.

 
 
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No record highs but benchmark indices managed to hit fresh closing high on Wednesday, a day ahead of F&O expiry.

Positive global cues and consistent buying by foreign investors kept the momentum going on Indian markets.

Close

Experts are of the view that the market is likely to remain volatile ahead of November expiry on Thursday but it is still "buy on dips" market as long as Nifty trades above 12,000.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 199 points to 41,020 while the Nifty50 closed 63 points higher at 12,100 on Wednesday.

Sectorally, the action was seen in auto, oil & gas, public sector, and metal stocks while profit-taking was seen in capital goods, realty, and telecom space.

Auto stocks gained between 1-4 percent on November 27 after media reports suggested that the government could approve scrappage policy in today's meeting.

The Indian rupee settled 15 paise higher at 71.35 against the US dollar on November 27, as gains in domestic equities and sustained foreign fund inflows strengthened investor sentiments.

On the institutional front, FPIs were net buyers in Indian markets for Rs 42 cr while the DIIs were also net buyers to the tune of Rs 439 cr, provisional data showed.

Big News:

The Sensex surged 1,000 points from 40,000 levels to 41,000 since June 2019. The swift rally had ups and downs which kept many investors at bay. But the upward march is only warming up, experts said, with most expecting the benchmark index to climb Mount 43K in the next 12 months.

The positive view on the stock market comes in the backdrop of weak macros, muted earnings growth, as well as,  investors’ confidence which has been shaken due to defaults from top corporates.

Moneycontrol spoke to 12 analysts, fund managers and head of research of top brokerage firms who remain constructive on Indian markets for the next one year, but gains will remain largely capped at the index level while big money could be made in the broader markets.

Almost 67 percent of the experts polled by Moneycontrol are of the view that the S&P BSE Sensex is well on track to hit 43,000 in the next 12 months while the rest, 33 percent feel that the index could hover in the range of 42,000-43,000.

In terms of Nifty50, experts feel that the index which has risen nearly 11 percent so far in 2019 has more steam left, and investors should use dips to get into quality stocks, the poll showed.

As many as 64 percent of the poll respondents feel that the Nifty50 could hover in the range of 13,000-14,000 while the 18 percent fell that it could well surpass 14,000 and the rest 18 percent are of the view that the index could move in the range of 12000-13,000.

Technical View:

Nifty forms a small bullish candle on the daily charts

It appears that the index is consolidating in a narrow range, but as long as Nifty stays above 12000, bulls are likely to remain in charge.

The next target is in the range of 12300 – 12350 kinds of levels

On the downsides 13-Day exponential moving average placed at 11,963 appears to be a critical short term support

Positional traders are advised to make use of dip around 12070 – 12050 levels to create fresh long positions with a stop below 11957 on a closing basis and look for a target of 12300.

Three levels: 11957, 12132, 12200

Max Call OI: 12,100, 12,200

Max Put OI: 12000, 11900

Stocks in news:

Satin Creditcare: Morgan Stanley sells 2.38 lakh shares (0.46 percent equity) on November 25 via open market.

BSE Limited: Board approves selling 4% stake in CDSL via offer for sale.

Autoline Industries: Company entered into an agreement with Kinetic Green Energy and Power Solutions for E-cycles.

Technical Recommendations:

We spoke to Bonanza Portfolio and here’s what they have to recommend:

Lux Industries: Buy| LTP: Rs.1396.95| Target: Rs 1535|Stop Loss: Rs 1310| Upside 10%

Motherson Sumi: Buy| LTP: Rs 133.60| Target: Rs 151.50| Stop Loss: Rs 124|Upside 13.10%

Maruti Suzuki India: Buy| LTP: Rs 7294.40| Target: Rs 7,805|Stop Loss: Rs 7000| Upside 7%

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.

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First Published on Nov 28, 2019 07:11 am
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