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Last Updated : Dec 13, 2019 07:26 AM IST | Source: Moneycontrol.com

Early on D-Street | Nifty may continue upward march, but 12,081 critical resistance for short-term

Foreign institutional investors (FIIs) sold shares worth Rs 683.83 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 810.23 crore in the Indian equity market on December 12.

 
 
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Positive global sentiment after the US Fed’s dovish stance on future rate trajectory and government's measures to ease rules for shadow banks helped Indian equity benchmarks extend the gains into the second consecutive day on December 12.

The Union Cabinet on December 11 approved the Partial Credit Guarantee Scheme to help non-banking finance companies (NBFCs) and housing finance companies (HFCs) with liquidity and thereby to provide stimulus to the real estate sector and the economy at large by enhancing credit flow.

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"This is a good initiative which will empower NBFCs & HFCs in short term liquidity stress, which, in turn, will enable them to contribute to the last mile lending to viable real estate players," said V K Vijaykumar, Chief Investment Strategist at Geojit Financial Services.

The 30-shares Sensex closed 169 points, or 0.42 percent, higher at 40,581.71 and Nifty shut shop at 11,971.80, with a gain of 62 points, or 0.52 percent.

BSE Midcap and Smallcap indices outperformed the benchmark Sensex, rising 0.69 percent and 0.59 percent, respectively.

Sectorally, the action was seen in metal, bank, auto and capital goods space while profit-taking was witnessed in IT and telecom stocks.

The rupee pared most of its early gains and settled marginally up at 70.83 against the US currency amid uncertainty over the delay in the deadline for imposition of higher US tariffs on Chinese goods.

On the institutional front, foreign institutional investors (FIIs) sold shares worth Rs 683.83 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 810.23 crore in the Indian equity market on December 12, provisional data available on the NSE showed.

Big news: Retail inflation gallops, IIP growth falls 3.8%

India's retail inflation rate in November stood at 5.54 percent, according to data released by the Central Statistics Office (CSO) on December 12.

Food prices, which is a gauge to measure changes in kitchen budgets, grew 10.01 percent in November, against 7.89 percent in October. The inflation rate in cereals and products stood at 3.71 percent against 2.16 percent a month ago. Vegetable inflation for November stood at 36 percent against 26 percent in October.

On the other hand, India's industrial output contracted 3.8 percent in October against a 4.3 percent contraction in September, according to the Index of Industrial Production (IIP) data released by the government on December 12.

Manufacturing output, which accounts for more than three-fourths of the entire index, contracted 2.1 percent in October against a contraction of 3.9 percent in September.

Technical View:

Nifty failed to hold the psychologically significant 12,000-mark but closed above 13-day exponential moving average which indicated that the positive trend can continue in the coming sessions also.

Experts feel if Nifty sustains above 11,934–11,923 levels, one can remain positively biased and look for an initial target of 12,031. Beyond that, critical resistance for the short-term will be present in the zone of 12,081–12,092 levels.

Three levels: 11,934, 12,006, 12,081

Max Call OI: 12,000, 12,200

Max Put OI: 11,500, 12,000

Stocks in news:

Wipro has bagged a multi-year order from Olympus for cloud services.

Navin Fluorine will invest over Rs 450 crore in a new project at Dahej, Gujarat.

Jogendra Sethi resigned as CFO of VIP Industries.

IndiGo's market share stood at 47.5 percent in November 2019 against 47.4 percent in November 2018.

Bank of Baroda has allotted 65.1 crore equity shares aggregating to Rs 7,000 crore to the government on a preferential basis.

Technical Recommendations:

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

HDFC Life Insurance Company: Buy | LTP: Rs 584 | Target: Rs 630 | Stop Loss: Rs 564 | Upside 8%

Avanti Feeds: Buy | LTP: Rs 500.85 | Target: Rs 540 | Stop Loss: Rs 480 | Upside 8%

Havells India: Sell | LTP: Rs 652.15 | Target: Rs 610 | Stop Loss: Rs 677 | Downside 6%

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 Dec 13, 2019 07:26 am
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