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Early on D-Street | Buy on dips as long as Nifty sustains above 11,919

Experts feel that we could see continuation of the current up move on the back of rebalancing of MSCI’s portfolio.

November 27, 2019 / 07:27 AM IST

It was indeed a terrific Tuesday on D-Street as both Sensex and Nifty hit a fresh record high.

The final tally on D-Street – the S&P BSE Sensex hit a record high of 41,120 before closing 67 points lower at 40,821 while the Nifty50 surged to a life high of 12,132 before closing 36 points lower at 12,037.

In terms of sectors, the action was seen in the Bankex, FMCG stocks while profit-taking was seen in the telecom, IT, capital goods, and auto stocks.

The broader markets underperformed as the S&P BSE Mid-cap index was down by 0.79 percent while the S&P BSE Smallcap index closed 0.38 percent down.

Close

The Indian rupee on November 26 appreciated by 24 paise to close at 71.50 against the US dollar, buoyed by persistent foreign fund inflows and hopes about US-China trade logjam breakthrough.

Big News:

Sensex, and Nifty50 hit a fresh record high -- the next big question is -- will the rally continue?

Experts feel that we could see continuation of the current up move on the back of rebalancing of MSCI’s portfolio.

Technically, above 12040, Nifty would halt between 12150 and 12200 levels, and any weakness from current levels would be buying opportunity with a medium term view.

Market sentiment has turned positive post latest indications of some encouraging progress towards US-China trade deal, additionally, consistent buying by FIIs and hopes of continuity of reforms from the govt helped the sentiment.

Amid expiry jitters, market would watch out for GDP number and further development on the US-China trade deal, which could induce some volatility in the markets.

Technical View:

A day of consolidation for Indian markets as Nifty formed a bearish candle on the daily charts despite hitting record highs

There is no apparent sell signals or weakness on the lower time frame charts traders need to maintain an optimistic outlook

As long as Nifty sustains above 11919 levels, it is a buy on dips market. Next target is 12300-12350

If Nifty slips below 12006 kinds of levels in the next session then initially it should slide towards 11940 levels where the best buying opportunity is available with a stop below 11919 on a closing basis, suggest experts.

Three levels: 11919, 12132, 12200

Stocks in news:

Moody's Investors Service on November 26 said it has placed Bharat Petroleum Corp Ltd's rating on review for downgrade after the government decided to privatise the country's second-biggest state oil refiner.

Vedanta Group firm Hindustan Zinc Ltd on Tuesday announced the appointment of Arun Misra as Deputy Chief Executive Officer.

Technical Recommendations:

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

Dr. Reddy's Laboratories Ltd: Buy| Target: Rs 3200| Stop Loss: Rs 2800| Upside 8%

Carborundum Universal Ltd: Buy| Target: Rs 352| Stop Loss: Rs 300| Upside 10%

Axis Bank Ltd: Buy| Target: Rs 825| Stop Loss: Rs 700| Upside 10%

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.
Moneycontrol News
first published: Nov 27, 2019 07:27 am

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