Market Headstart | Nifty likely to open higher tracking Asian peers; 3 technical buys

The Nifty50 is likely to open higher on Wednesday following positive trend seen in other Asian markets. The index rose 20 points higher at 10,908 on Tuesday.

Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 32.5 points or 0.3 percent. Nifty futures were trading around 10,987-level on the Singaporean Exchange.

The benchmark S&P 500 stock index ended little changed in a choppy trading session on Tuesday as the possibility of a partial US government shutdown raised investor jitters ahead of a highly anticipated meeting of the Federal Reserve.

Asian share markets played second fiddle to bonds on Wednesday as a spectacular fall in the price of oil fanned speculation the US Federal Reserve might be done with tightening after its policy meeting later in the day.

Oil prices tumbled more than 5 percent on Tuesday in heavy trade due to fears of oversupply and deteriorating demand, extending a selloff that has taken major crude benchmarks down more than 30 percent from an October peak.

Stocks in news:

New generation private sector IDFC Bank and non-banking financial company Capital First announced the completion of their merger on December 18, creating a combined loan asset book of Rs 1.03 lakh crore for the merged entity IDFC First Bank.

State-owned IDBI Bank said it has received the final letter from Life Insurance Corporation (LIC) for an open offer to acquire additional 26 percent in the lender.

Private sector lender Yes Bank on December 18 sold more than 2 percent stake of Fortis Healthcare in open market transactions. Note that the stock has lost 15 percent year-to-date basis.

PVR: Board said it was considering raising funds on December 21.

Lemon Tree Hotels: Company signed license agreement for 69 room property in Pune. This hotel is expected to be operational by March next year.

Dr Reddy's Labs: Gets Tentative US FDA Nod For Sapropterin Dihydrochloride

Technical Recommendations:

We spoke to SMC Global Securities and here’s what they have to recommend:

Capital First: Buy| Target: Rs 612| Stop Loss: Rs 520| Return 10%

United Spirits: Buy| Target: Rs 710| Stop Loss: Rs 600| Return 10%

Exide Industries: Buy| Target: Rs 281| Stop Loss: Rs 240| Return 10%

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