Moneycontrol Be a Pro
Get App
Last Updated : Nov 22, 2019 07:21 AM IST | Source: Moneycontrol.com

Early on D-Street | Consolidation may continue; 12,000-12,100 key resistance range for Nifty

On the institutional front, FPIs were net buyers in Indian markets for Rs 5,023.54 crore while the DIIs were net sellers to the tune of Rs 247.74 crore, provisional data showed.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

The Indian market ended lower on Thursday, November 21 as investors booked profit in riskier stocks amid weak global sentiment.

Nifty traded lackluster and settled marginally lower, taking a breather after the recent up move. It opened flat and remained range-bound thereafter.

Close

Sensex settled 76 points, or 0.19 percent lower at 40,575.17, while Nifty closed at 11,968.40, with a loss of 31 points or 0.26 percent.

"Concerns over delay in the US-China trade deal and FED minutes fueled negativity in markets across the globe. While domestic blue chips are finding it difficult to maintain positivity due to excessive valuation," said Vinod Nair, Head of Research, Geojit Financial Services.

He said the focus will be on next week’s Q2GDP data which is expected to be below the 5 percent reported in Q1. It is probable that the forecasted growth of 6.1 percent for FY20 is likely to be downgraded further. At the same time, Nifty50 is trading at a year forward price-earnings ratio (P/E) of 19 times and 26 times on 12 months trailing basis which does not provide much leeway to perform in the short-term.

The rupee pared initial losses and settled 5 paise up at 71.76 against the US currency on November 21 amid softening crude oil prices and weakening of the greenback vis-a-vis other currencies overseas.

On the institutional front, FPIs were net buyers in Indian markets for Rs 5,023.54 crore while the DIIs were net sellers to the tune of Rs 247.74 crore, provisional data showed.

Big News:

The initial public offering (IPO) of one of the oldest private sector banks of India CSB Bank (earlier known as The Catholic Syrian Bank) is set to open for subscription on November 22.

The issue will close on November 26. Equity shares are proposed to be listed on the BSE, as well as, the National Stock Exchange on December 4. The book running lead managers to the issue are Axis Capital and IIFL Securities.

The IPO consists of a fresh issue aggregating up to Rs 24 crore and an offer for sale of up to 1,97,78,298 equity shares by the selling shareholders.

The price band is fixed at Rs 193-195 per share. Bids can be made for a minimum lot of 75 equity shares and in multiples of 75 equity shares thereafter.

Technical View:

The consolidation in Nifty below 12,000 continued. The region around previous all-time highs of 12,100 is witnessing some profit booking.

"It's not at all unexpected to witness some retracement near all-time highs. The broader structure continues to remain positive and the uptrend is intact. Near-term corrections towards the support zone should be utilized to build long positions," said Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures.

Chopra said Nifty has support in the range of 11,920-11,850, but the index will face resistance in the range of 12,000-12,100.

Three levels to watch on Friday would be 11,956.9, 12012.1, 12,028.2

Max Call OI: 12,000, 12,200

Max Put OI: 11,900, 11,500

Stocks in news:

Finolex Cables launched the electrical accessories range to fortify its product offering.

Cholamandalam Financial Holdings' independent director Shubhalakshmi Panse has resigned.

Tata Power has raised Rs 1,500 crore via NCDs.

USFDA has issued 3 observations for Laurus Labs' Units 1 and 3 at Vizag.

Technical Recommendations:

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

Eicher Motors: Buy | LTP: Rs 21,940 | Target: Rs 24,000 | Stop Loss: Rs 20,800 | Upside: 9.38 percent

Berger Paints: Sell | LTP: Rs 481 | Target: Rs 435 |Stop Loss: Rs 495 | Downside: 9.56 percent

Bajaj Finance: Sell | LTP: Rs 4,121 | Target: Rs 3,860 | Stop Loss: Rs 4,250 | Downside: 6.3 percent

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.

LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.
First Published on Nov 22, 2019 07:21 am
Loading...
Follow us on
Available On