Nifty50 is likely to consolidate and retest 12,100 levels on Wednesday, the first trading session of the year 2020 as most of the Asian markets remain shut on account of the New Year.
Indian market closed the last trading session of the year on a negative note. The S&P BSE Sensex plunged more than 300 points while the Nifty50 closed below 12200 levels on Tuesday.
Investors’ wealth rose by more than Rs 11 lakh crore in the year 2019. Investors’ wealth on BSE rose from Rs 144.48 lakh cr recorded on December 31, 2018, to Rs 155.53 lakh cr on December 31, 2019.
Trends on SGX Nifty indicate a negative opening for the broader indices in India, a loss of 87.50 points or 0.71 percent. Nifty futures were trading around 12,239-level on the Singaporean Exchange.
The S&P BSE Sensex rallied 14.38 percent while the Nifty50 rose 12 percent in 2019, outperforming small & midcaps stocks in the same period.
The S&P BSE Mid-cap index fell little over 3 percent while the S&P BSE Small-cap index was down nearly 7 percent in the same period. However, things could well turn for the broader market in 2020, suggest experts.
On the macro front, contracting for the fourth consecutive month, the output of eight core infrastructure industries shrank by 1.5 percent in November 2019 as five of the eight sectors witnessed negative growth, according to official data released on December 31.
India’s fiscal deficit in the first eight months of the current fiscal year further exceeded from the annual target of Rs 7.04 lakh crore. The fiscal deficit rose to Rs 8.07 lakh crore till November, on the back of higher spending and lower revenue collection, according to the Ministry of Finance.
The rupee dropped by 5 paise to close at 71.36 against the US dollar on the last trading session of 2019 on December 31, leading to a total loss of 159 paise or 2.28 percent in the year amid trade war concerns, a rebound in crude oil prices and higher import bill.
On the institutional front, FPIs were net sellers in Indian markets for Rs 1,265 crore on December 31 while the DIIs were net buyers to the tune of Rs 585 cr, provisional data showed.
Big News:
In the last 6 years, infra has been in focus, and both States and Centre have spent Rs 51 lakh crore on infrastructure projects, which will be continued with spending of more than Rs 100 lakh crore in next five years, said Finance Minister, Nirmala Sitharaman while addressing last press conference of the year 2019.
She further said the task force in 4 months held 70 stakeholders' consultations on infra investment and recommended infra investment of Rs 102 lakh crore.
Experts feel this is definitely a positive move for not only infrastructure but also construction and cement stocks. stocks that are likely to benefit the most from the move are L&T, Dilip Buildcon, Sadbhav Infrastructure, JK Cement, Heidelberg Cement.
Technical View:
Nifty formed a long negative candle on the daily chart after the formation of a slightly lower top at 12,286 levels of the last session. Experts say, technically, this pattern could be a cheering factor for bears to make a comeback from the highs.
"Nifty is currently placed near the immediate support of 12,120 and a move below this support could open up short-term downward correction in the market. The important reversal pattern is yet to be confirmed at the highs," said Nagaraj Shetti, Technical Research Analyst at HDFC securities.
Three levels to track – 12,152 | 12247| 12,294
Max Call OI: 12500, 12200
Max Put OI: 12000, 11500
Stocks in news: Aster DM Healthcare: Company entered into a share purchase agreement to acquire a 100 percent stake in Wahat Al Aman Home Healthcare.
Skipper: CARE downgraded long term rating on the company's bank facilities to BBB+ with a stable outlook, from A with a negative outlook.
Care Ratings downgraded YES Bank infrastructure bonds, lower tier II bonds and Tier II bonds totaling Rs 16,430.60 crore to Care A from CARE A+, and assigned a negative outlook, the bank said on Tuesday.
Technical Recommendations:
We spoke to SMC Global Securities and here’s what they have to recommend:
Axis Bank Ltd: Buy| LTP: Rs 754| Target: Rs 810| Stop Loss: Rs 715| Upside 7%
DCM Shriram Ltd: Buy| LTP: Rs 396| Target: Rs 451| Stop Loss: Rs 360| Upside 14%
Bata India Ltd: Buy| LTP: Rs 1750| Target: Rs 1895| Stop Loss: Rs 1650| Upside 8%
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