Market Headstart: Nifty50 seen opening lower; BEML, Gujarat Gas top buys

The Nifty50 is expected to open lower on December 4, tracking a muted trend seen in other Asian markets after the US President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election.

If there is no deal or substantial progress before December 15, tariffs on the remaining Chinese imports, including cell phones, laptop computers and toys, will take effect, said a Reuters report quoting US Commerce Secretary Wilbur Ross.

Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 40-point loss, or 0.33 percent. The Nifty futures were trading around 12,011-level on the Singaporean Exchange.

Let’s look at the final tally on D-Street. The S&P BSE Sensex fell 126 points to 40,675 while the Nifty50 closed 54 points lower at 11,994 on December 3.

The Indian rupee surrendered early gains to settle flat at 71.66 to the US dollar amid the emergence of fresh worries over a global trade war.

On the institutional front, FPIs were net sellers in Indian markets for Rs 1,131 cr while DIIs were net buyers to the tune of Rs 963 cr, provisional data showed.

Stocks in news:

Standard Life Investments, one of the promoters of HDFC Asset Management Company (AMC), will sell a 2.23 percent stake in the company on December 4-5.

Leading stock exchange NSE, for surveillance action, has shortlisted eight companies, including Future Enterprises and GMR Infrastructure that have higher levels of pledged shares by promoters.

CSB Bank: Shares of Kerala-based CSB Bank make a debut on bourses on December 4, with the final issue price at Rs 195 per share.

Technical Recommendations:

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

BEML: Buy | Target: Rs 1,145 | Stop Loss: Rs 950 | Upside 12 percent

Gujarat Gas Ltd: Buy | Target: Rs 236 | Stop Loss: Rs 195 | Upside 12 percent

Balkrishna Industries Ltd: Buy | Target: Rs 1,011 | Stop Loss: Rs 850 | Upside 11 percent

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