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Last Updated : Jan 16, 2020 08:59 AM IST | Source: Moneycontrol.com

Market Headstart: Nifty likely to hold 12,300; Nalco, Bajaj Auto top buys

Trends on SGX Nifty indicate a flat opening for the broader index in India, with a 8.5 points loss or 0.07 percent. The Nifty futures were trading around 12,351-level on the Singaporean Exchange.


The Nifty50 is expected to hold on to its crucial support placed at 12,300 levels and any dips towards that level is likely to get bought into.

World stocks inched to a record high on Thursday after the United States and China signed a deal to defuse their 18-month trade war, which has weighed on global economic growth and hampered investments, said a Reuters report.

Overnight, the Dow ended above 29,000 for the first time on Wednesday and the S&P 500 also closed at a record high after the United States and China signed a Phase 1 trade agreement

Close

Trends on SGX Nifty indicate a flat opening for the index in India with a 8.5 points, or 0.07 percent, loss. The Nifty futures were trading around 12,351-level on the Singaporean Exchange.

Let’s look at the final tally on D-Street for January 15 – the S&P BSE Sensex fell 79 points to 41,872 while the Nifty50 closed with loss of 19 points at 12,343.

Sectorally, action was seen in realty, consumer durables, infrastructure, consumer discretionary, and metal indices. Profit-taking was visible in banks, energy, telecom, and finance stocks.

The broader market outperformed as the S&P BSE Small-cap index rose over 1 percent while the S&P BSE Mid-cap index closed with gains of 0.6 percent.

The rupee pared its early losses to settle 5 paise higher at 70.82 against the US dollar on Wednesday, ahead of the signing of phase 1 trade agreement between the US and China.

Foreign institutional investors (FIIs) bought shares worth Rs 279.53 crore, while domestic institutional investors (DIIs) sold shares of worth Rs 648.34 crore in the Indian equity market on January 15, provisional data available on the NSE showed.

Technical View:

Nifty50 formed a Dragon Fly Doji kind of pattern on the daily charts

This kind of formation around higher end of the rallies has the ability to reverse the prevailing trend

If the Nifty trades below 12278 levels for a larger part of the intraday then it can set the tone for short term trend reversal.

The strength is likely to shall reemerge on a close above 12374 levels which can then help bulls in expanding this rally towards 12490 levels.

For the day traders are advised to remain neutral on index while shifting focus to stock specific opportunities, suggest experts.

Three levels – 12278, 12355, 12400

Max Call OI: 12500, 12400

Max Put OI: 12000, 12200

Stocks in the news:

Torrent Pharma: Board will consider raising funds via equity on January 27.

Sterlite Tech: Q3 profit fell 43.1 percent to Rs 91 crore, revenue declined 11.5 percent to Rs 1,203 crore QoQ.

Den Networks: The company reported a net profit of Rs 12.3 crore for Q3FY20 against a loss of Rs 31.2 crore in Q3FY19. Revenue from operations for the quarter came at Rs 318 crore for the said quarter against Rs 308 crore in the same quarter a year ago.

Technical Recommendations:

We spoke to Bonanza Portfolio and here's what they have to recommend:

HeidelbergCement India | Buy | LTP: Rs 194.55 | Target: Rs 222 | Stop loss: Rs 185 | Upside: 14.11%

National Aluminium Company (Nalco) | Buy | LTP: Rs 48.25 | Target price: Rs 54.70 | Stop loss: Rs 44.50 | Upside: 13.37%

Bajaj Auto | Buy | LTP: Rs 3,126.50 | Target: Rs 3,325 | Stop loss: Rs 2,998 | Upside: 6.34%

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 Jan 16, 2020 08:36 am
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