It was a terrific Thursday as Nifty came within striking distance of fresh record highs, while the S&P BSE Sensex rallied by more than 300 points tracking strong global and local cues.
Trends on SGX Nifty indicate a flat opening for the broader indices in India, a gain of 7 points or 0.06 percent. Nifty futures were trading around 12,344 on the Singaporean Exchange.
The final tally on D-Street on January 2 – the S&P BSE Sensex rose 320 points to 41,626 while the Nifty50 closed with gains of nearly 100 points at 12,282 to end at a fresh record closing high.
Experts are of the view that GST collections, robust CAPEX plan from the govt, and the announcement of US-China deal signing date pushed the market higher led by sectors such as infra, commercial vehicles, cement, and metals.
The rupee lost 16 paisa to close at 71.38 against the US dollar on Thursday as a steady rise in crude oil prices and a stronger dollar against key global currencies weighed on sentiment.
On the institutional front, FPIs were net buyers in Indian markets for Rs 688 crore while the DIIs were also net buyers to the tune of Rs 63 cr, provisional data showed.
Big News:
With the market near record highs – the next big question is – what should one buy at current levels?
We collated recommendations from various brokerage firms and here’s what they have to recommend for 2020:
ICICIdirect: Bharti Airtel, IDFC First Bank, KNR Construction, Mahanagar Gas, PVR.
Globe Capital Markets: Bharat Dynamics, HCL Tech, L&T, and M&M.
Technical View:
Nifty formed a bullish candle on the daily charts
It has negated all the previous negative patterns as bulls look in a firm position to take the index to fresh record highs
India VIX fell down by 0.95% at 11.49 levels. Lower volatility suggests that bulls are holding a tight grip on the market and every small decline is being bought.
Experts feel that once the Nifty registers a breakout above 12293 levels, the next big resistance is placed around 12350-12400
Intraday traders can look for going long if Nifty sustains above 12300 levels for more than 30 minutes on Friday, and look for a target of 12390.
Contrary to this, weakness in Nifty can be expected on a strong close below 12168 levels.
Three levels: 12195, 12289, 12350
Max Call OI: 12500, 12200
Max Put OI: 12000, 11500
Stocks in the news:
The Department of Telecommunications (DoT) has sought Rs 1.47 lakh crore from Bharti Airtel, Vodafone Idea Ltd, and other telecom companies.
Rakesh Jhunjhunwala's RARE Enterprises bought 27,84,879 shares of IIFL Securities through a bulk deal on BSE on January 2, data available with the exchange showed.
Aurobindo Pharma USA Inc said it is voluntarily recalling Mirtazapine tablets, used for the treatment of major depressive disorder, in the US market.
Brokerage Views:
Credit Suisse On Crompton Consumer
Maintain Outperform call, target at Rs 310/share
Steady growth in ECD despite a weak macro
Lighting should become an option value from FY21
Marginally cut earnings by 2% to build in weak lighting performance
ECD now more than 90% of the company's EBIT
Credit Suisse On Sun Pharma
Maintain Neutral call, target at Rs 450/share
Warning letter unlikely for Halol; approvals likely delayed for 3-6 months
Flag classification could be close between VAI Or OAI
Delay in approval not a good news as Illumya is not doing well
Cequa faces big overhang from generics entry in Restasis
Stock has further overhang from potential fine in price fixing litigation
Technical Recommendations:
We spoke to IndiaNivesh Securities and here's what they have to recommend:
Mahindra & Mahindra | Buy | LTP: Rs 539.85 | Target: Rs 560 | Stop loss: Rs 524 | Upside: 3.7%
Vedanta | Buy | LTP: Rs 159.45 | Target: Rs 175 | Stop loss: Rs 148 | Upside: 9.75%
BEL | Buy | LTP: Rs 103.15 | Target: Rs 110 | Stop loss: Rs 98 | Upside: 6.64%
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.
