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Market Headstart: Nifty set to scale levels above 12,400 levels in Jan series

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 12 points loss or 0.10 percent. The Nifty futures were trading around 12,329-level on the Singaporean Exchange.

December 30, 2019 / 09:28 AM IST

The Nifty50 is expected to open lower on Monday following muted trend seen in other Asian markets as investors consolidated gains after scaling 18-month highs last week.

“Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month,” said a Reuters report.

“Holiday cheer had lifted global equity markets late last week, helping the S&P 500 and the Dow Jones Industrial Average to eke out record closing highs on Friday,” it said.

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 12 points loss or 0.10 percent. The Nifty futures were trading around 12,329-level on the Singaporean Exchange.

Close

The rupee depreciated by 4 paise to close at a fresh three-week low of 71.35 against the US dollar on Friday, continuing its losing streak for the sixth day in a row amid a steady rise in crude oil prices.

Foreign investors remained net buyers in December by investing Rs 2,613 crore in the domestic markets, mainly due to expectation of a revival in corporate earning, quantitative easing by the US Fed and infusion of funds by central banks globally

On the institutional front, FPIs were net buyers in Indian markets for Rs 81 cr, while the DIIs were net buyers to the tune of Rs 125 cr, provisional data showed.

What to watch out for:

On the macro front, the asset quality of Indian commercial banks may worsen with rise in slippages and lack of credit growth next year, the Reserve Bank of India (RBI) said in the Financial Stability Report released on December 27. Gross NPA ratio may increase to 9.9 percent by September 2020, from 9.3 percent a year ago, the report said.

The Reserve Bank of India on Thursday announced simultaneous purchase and sale of government securities through special open market operations (OMOs) for Rs 10,000 crore each on December 30 following a review of liquidity situation.

Assuring that honest commercial decisions taken by bankers will be protected, Finance Minister Nirmala Sitharaman on Saturday said the government has decided to take measures to assuage concerns over harassment by investigative agencies, said a PTI report.

The Central Bureau of Investigation (CBI), Comptroller and Auditor General of India (CAG), and Central Vigilance Commission (CVC) are commonly referred as 3Cs.

Technical View:

The nifty index started the January series on a positive note and headed towards 12250 zones by forming a Bullish candle on the daily scale.

Nifty formed a Doji candle on the weekly scale

Price setup indicates indecisiveness among the market participants and requires a follow up to see the fresh momentum.

The index has to hold above 12100 zones to witness an up move towards 12400 zones while on the downside major support is seen at psychological 12000 zones, suggest experts.

India VIX fell down from 12.32 to 10.52 levels on week on week basis which is a positive sign.

Three levels: 12157, 12258, 12300

Max Put OI -- 12000, 11500 strikes

Maximum Call OI - 12500, 12200 strike

Stocks to watch:

Adani Logistics, a wholly-owned subsidiary of Adani Ports on Friday announced its plans to acquire cold-chain operator Snowman Logistics with the latter’s promoter Gateway Distriparks Ltd making a complete exit.

CLSA has a buy call on Adani Ports with a target of Rs 485.

Polymer pipes and fittings manufacturer Prince Pipes and Fittings will make a debut on the exchanges on December 30 after having finalised the issue price at Rs 178 per share. The grey market premium suggests the listing may be at a discount, sources told Moneycontrol.

The Reserve Bank of India-appointed administrator of the crippled Dewan Housing Finance Ltd (DHFL) called for a meeting of its creditors for the first time on Monday after the mortgage lender was admitted for insolvency proceedings.

Sakshi:

MS On CONCOR
Equal-weight Rating, Target At `572/Sh
Quantum Of Reduction In Freight & The Timeline Key Variables To Monitor
Hike Of 40p/km For Passenger Segment Is Being Considered
Freight Rationalisation Would Logically Be Extended To Containers As Well
Co Could Be A Beneficiary Of Better Volumes

Volumes Could Improve If Pricing Philosophy Is Extended To DFC Freight

MS On NTPC
Overweight Rating, Target At `152/Sh
As Per Rpts, Stricter Conditions Being Mulled For Spl Loans From PFC/REC To SEBs
Fresh Loans Will Increase Int Cost For SEBs & Reduce Receivables Of Developers

SEB Overdues Are `67,300 Cr, Up 3% MoM In Oct & Up 47% Since March

Technical Recommendations:

We spoke to Angel Broking and here's what they have to recoomend:

PVR | Buy | LTP: Rs 1,883.60 | Target price range: Rs 1,930–1,950 | Stop loss: Rs 1,838 | Upside: 4%

Indoco Remedies | Buy | LTP: Rs 180.20 | Target price: Rs 211 | Stop loss: Rs 162 | Upside: 17%

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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