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Last Updated : Jan 02, 2020 09:07 AM IST | Source: Moneycontrol.com

Market Headstart | Key for Nifty to hold above 12,150 today; experts suggest avoid buying

Trends on SGX Nifty indicate a flat opening for the index, a gain of 2.50 points or 0.02 percent. Nifty futures were trading around 12,247-level on the Singaporean Exchange.


After a muted trade on January 1, we could see some respite on January 2 tracking positive trend in Asian markets. Markets in Japan are closed for national holiday.

Investors also cheered news that the United States and China will sign a trade pact soon after a year of volatile negotiations between the world’s two largest economies, said a Reuters report.

US President Donald Trump said on December 31 that Phase 1 of trade deal with China would be signed on January 15 at the White House, though uncertainty surrounds details about the agreement, it said.

Close

Trends on SGX Nifty indicate a flat opening for the index in India, a gain of 2.50 points, or 0.02 percent. Nifty futures were trading around 12,247-level on the Singaporean Exchange.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 52 points to 41,306 while the Nifty50 ended with gains of 14 points at 12,182. It hit an intraday high of 12,222 levels.

Sectorally, action was seen in power, infrastructure, IT and capital goods stocks while profit-taking was seen in consumer durable, auto and telecom names.

The broader market outperformed with the S&P BSE Midcap index closing with gains of 0.2 percent while the Small-cap index was up 0.64 percent.

On the macro front, GST revenue collection remained above Rs 1 lakh crore mark for the second month in a row with December mop-up rising to Rs 1.03 lakh crore as compared to the year-ago period.

Investors would also watch out for Markit India Manufacturing PMI for December.

Rupee kick-started 2020 on a positive note with gains of 14 paisa against the US currency on the first trading day of the New Year on January 1.

On the institutional front, FPIs were net sellers in Indian markets for Rs 58 cr, while the DIIs were net buyers to the tune of Rs 208 cr, provisional data showed.

Big News:

Indian market gave double-digit returns in 2019 marking its fourth consecutive annual gain, and the momentum is likely to continue in 2020 as well, suggest experts.

The S&P BSE Sensex rallied by over 14 percent while the Nifty50 surged by 2 percent in the year 2019, and going by initial estimates from experts, the year 2020 could turn out to be a year in which benchmark indices could deliver another double-digit returns.

The most aggressive target price of 14,400 for the Nifty50 is put out by Shrikant S. Chouhan of Kotak Securities Ltd which translates into a rise of 18 percent from Tuesday’s closing level of 12,168.

The big factors which could play an important role in charting the direction of the market are Union Budget 2020, a continuation of the reform process to boost growth, global growth, revival in corporate earnings, and ease in trade tension between the US & China.

Brokerages on Nifty & Sensex

Technical View:

The Nifty50 formed a bearish candle on daily charts while MACD made a bearish crossover which might cap upside

The last time when Nifty made a bearish crossover was on 29 November and Nifty made a bottom around 11840 levels before bouncing back

Nifty faced resistance around the 5-Days EMA placed at 12,197

It looks like consolidation is likely to continue if Nifty closes below 12,150 kinds of levels this week. In such a scenario ideal target shall be around 12,050 kinds of levels.

Upsides looks limited, for the time being, traders are advised to avoid buying the dip and remain short with a stop above 12,290 levels on closing basis whereas fresh shorting can be considered below 12,150 levels, suggest experts.

Three levels: 12165, 12222, 12300

Max Call OI: 12500, 12200

Max Put OI: 12000, 11500

Stocks in the news:

Tata Motors on January 1 reported a 12 percent decline in total vehicle sales in the domestic market to 44,254 units in December. The company had sold 50,440 units in the same month in 2018, Tata Motors said in a statement.

Telecom stocks will be in focus after TRAI on Wednesday made amendments to the new regulatory framework for cable and broadcasting services under which cable TV users will be able to access more channels at lower subscription price.

Eicher Motors: December sales dipped 19.1 percent to 5,042 units against 6,236 units during December 2018

Technical Recommendations:

We spoke to Sanctum Wealth Management and here’s what they have to recommend:

Narayana Hrudayalaya Ltd: Buy| LTP: Rs 326| Stop Loss: Rss 308| Target: Rs 380| Upside 16%

Balrampur Chini Mills Ltd: Buy| LTP: Rs 187| Stop Loss: Rs 176| Target: Rs 225| Upside 20%

Larsen & Toubro Infotech Ltd: Buy| LTP: Rs 1,780 | Stop Loss: Rs 1,710| Target: Rs 2000| Upside 12%

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their 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 Jan 2, 2020 08:30 am
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