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Last Updated : Dec 04, 2019 07:29 AM IST | Source: Moneycontrol.com

Early on D-Street | Stay cautious, create fresh short positions below 11,950

A breach of 11950 in the next trading session can initially drag down the index towards 11880 levels.

 
 
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It was a day of consolidation for Indian markets. The Nifty50 closed below 12000 levels for the first time since November 22nd.

Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 126 points to 40,675 while the Nifty50 closed 54 points lower at 11,994 on Tuesday.

Close

Sectorally, the action was seen in Realty, IT, and Consumer Durables while on the losing front profit-taking was seen in sectors like metals, infrastructure, telecom, and power.

The broader market underperformed as the S&P BSE Mid-cap index fell 0.95 percent while the S&P BSE Small-cap index was down 0.74 percent.

Public sector banks disbursed a record Rs 4.91 lakh crore of loans during the festive month of October and November, the finance ministry said on December 3.

The government raised Rs 2,79,622 crore from the disinvesment of public sector undertakings (PSUs) during 2014-19 compared to Rs 1,07,833 crore during the 10-year UPA rule from 2004-14, Union minister Anurag Singh Thakur said on December 3.

The Indian rupee surrendered early gains to settle flat at 71.66 to the US dollar amid emergence of fresh worries over global trade war.

On the institutional front, FPIs were net sellers in Indian markets for Rs 1131 cr while DIIs were net buyers to the tune of Rs 963 cr, provisional data showed.

Big News:

Finance Minister Nirmala Sitharaman, at the India-Sweden Business Summit on December 3, said that the government is open to further reforms aimed at making India a more attractive destination for investors.

She cited the recent corporate tax rate cut while talking about the various steps that the Indian government has taken in the recent times in this direction.

In September this year, the government slashed corporate tax rates by up to 10 percentage points. The move was the biggest such tax reduction in the past 28 years. The Rs 1.45 lakh crore-tax break was aimed at pulling the economy out of a six-year low growth.

Technical View:

Nifty formed a bearish candle for the third consecutive day in a row

Closed below 5-Days EMA, and 13-DMA| It bounced back from 20-DMA placed at 11,974

The advanced declined ratio appears to be majorly favoring bears as two stocks declined for every single stock

The index shall continue to remain vulnerable for a sell-off going forward unless it shows some signs of strength which can be expected on a close above 12068 levels which is the intraday high of Tuesday

A breach of 11950 in the next trading session can initially drag down the index towards 11880 levels.

Traders are advised to remain cautious and should consider creating a fresh short position below 11950 and look for a target of 11880 with a stop above intraday high, suggest experts.

Three levels -- 11,956, 12068, 12158

Stocks in news:

Standard Life Investments, one of the promoters of HDFC Asset Management Company (AMC), will sell a 2.23 percent stake in the company on December 4-5.

Leading stock exchange NSE has shortlisted eight companies, including Future Enterprises and GMR Infrastructure that have higher levels of pledged shares by promoters, for surveillance action.

CSB Bank: Shares of Kerala-based CSB Bank make a debut on bourses on December 4, final issue price at Rs 195 per share.

Technical Recommendations:

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

BEML: Buy| Target: Rs 1145| Stop Loss: Rs 950| Upside 12%

Gujarat Gas Ltd: Buy| Target: Rs 236| Stop Loss: Rs 195| Upside 12%

Balkrishna Industries Ltd: Buy| Target: Rs 1011| Stop Loss: Rs 850| Upside 11%

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 4, 2019 07:29 am
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