The Nifty50 is expected to tread higher and inch towards 12,300 levels on January 13 tracking positive trend seen in other Asian markets.
On Friday, US markets fell from record-high levels as investors took profit and data showed slower-than-expected December US jobs growth, but the major indices posted gains for the week.
Domestic jobs increased 145,000 last month, below the forecast for a 164,000 rise, the U.S. government data showed, as the pace of hiring remained more than enough to keep the longest economic expansion in history on track, said a Reuters report.
Trends on SGX Nifty indicate a positive opening with a 39 points gain or 0.32 percent. The Nifty futures were trading around 12,330-level on the Singaporean Exchange.
For the week, the S&P BSE Sensex closed with gains of over 0.33 percent while the Nifty50 closed with gains of 0.25 percent for the week ended January 10.
In the broader market space, the S&P BSE Smallcap index rose 1.1 percent while the S&P BSE Midcap index closed 0.3 percent higher in the same period.
Let’s look at the final tally on D-Street for Friday – the S&P BSE Sensex rose 147 points to 41,599 while the Nifty50 closed with gains of 40 points at 12,256.
The Indian rupee continued its winning run for fourth session in a row, soaring 27 paise to settle at 70.94 to the US dollar as softening crude oil prices lifted forex market sentiments.
On the institutional front, FPIs were net buyers in Indian markets for Rs 578 cr while the DIIs were net sellers in Indian markets for Rs 251 cr, provisional data showed.
Adopting a cautious approach amid the US-Iran tensions, foreign portfolio investors (FPI) have pulled out a net sum of Rs 2,415 crore from the Indian capital markets in January so far.
Big News:
India's industrial output grew 1.8 percent in November against a contraction of 3.8 percent in October, according to the Index of Industrial Production (IIP) data released by the government on January 10.
Manufacturing output, which accounts for more than three-fourths of the entire index, grew 2.7 percent in November, against a contraction of 2.1 percent in October.
Experts point out that the IIP numbers have come in positive for the first time in the past three months of contraction as production activity in cement and fertilisers picked up.
The government recently released its advance estimates for gross domestic product (GDP) growth in FY2020 in which it pegged the economic growth rate for 2019-20 at 5 percent, slower than the 2018-19 expansion rate of 6.8 percent.
From the consumption point of view, it is welcoming that the consumer non-durables has turned positive. However, consumer durables are still in the negative territory, contracting for the last six months, suggest experts.
Technical View:
Nifty50 formed a Doji kind of candle on the daily charts which reflects indecisiveness among the bulls and bears
Few momentum oscillators on weekly charts generated sell signals accompanied by negative divergences. Hence, in the next trading session if the index fails to sustain above 12213 levels then it can undergo selling pressure, suggest experts
If the correction in the next couple of days drags down the index into the bullish gap zone of 12132 –12044 levels then that shall be considered as an opportunity to create fresh longs.
A close above 12300 levels can extend the upswing towards 12450 levels. Traders are advised to buy either on correction or on a strong close above 12300 levels, suggest experts.
Three-level to watch on Monday – 12213, 12,311, 12450
Stocks in news:
The country's second-largest software company Infosys grew 10.9 percent sequentially in profit terms and 2 percent on the revenue front in the quarter ended December 2019. More important was the upward revision in full-year constant currency revenue guidance and the clean chit in the whistleblower case.
HSBC: Buy| Target raised to Rs 810 from Rs 800
Nomura: Neutral| Target raised to Rs 805 from Rs 760
Avenue Supermarts, the operator of hypermarkets retail chain D-Mart, showed a healthy 53.3 percent growth in Q3 FY20 profit on January 11, which was ahead of analyst estimates.
Morgan Stanley: Underweight| Target Rs 1500
Citigroup: Sell| Target Rs 1550
The board of Yes Bank on January 10, approved raising Rs 10,000 crore fresh capital via a mix of debt and equity.
Morgan Stanley: Underweight| Target Rs 25
Brokerage Radar:
Citi On Cipla
Neutral Rating, Target At Rs 540/Sh
May Realise Upside From Global Respiratory Potential, US Pipeline Build-up
Supply Constraints & Higher Input Costs Will Affect Profit Over 2 Qtrs
Rising Pressure On Tender Businesses May Weigh On Stock Price
MS On Edelweiss
Equal-weight Call, Target At `120/Sh
May Have Adverse Implications If Co Fails To Get Quick Resoln To ED Issue
(Edelweiss Financial Services (Edelweiss) on Friday said it has received a communication from the Enforcement Directorate (ED) to appear and provide information about the group’s dealings with a firm called Capstone Forex Pvt Ltd.)
Technical Recommendations:
We spoke to Angel Broking and here’s what they have to recommend:
Finolex Industries | Buy | LTP: Rs 576.90 | Target price: Rs 640 | Stop loss: Rs 536 | Upside: 11%
Indoco Remedies | Buy | LTP: Rs 195.90 | Target price: Rs 211 | Stop loss: Rs 186 | Upside: 8%
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