Taking Stock: Small & midcaps outperform; Nifty recovers losses, close above 12,250
Experts are of the view that the market is likely to remain rangebound in the absence of any major triggers, but smart money continues to flow into broader markets.
Nagaraj Shetti – Technical & Derivative Analyst, HDFC Securities:
The upside momentum continued in the market with range bound action and the Nifty closed the day on a minor positive note. A small negative candle was formed today at the highs with lower shadow. This pattern indicates a choppy movement in the market with positive bias.
The positive chart formation of higher highs and higher lows continued in the Nifty as per daily time frame chart and this displays a strength of an uptrend. Hence, there is a possibility of yet another new high formation in the next 1-2 sessions. Upside targets to be watched around 11,350-400 levels.
Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities:
The market remained volatile on Monday, however, Auto and Metal companies did extremely well throughout the session. These indices closed almost 1.25 percent higher as compared to nominal gains of Nifty and Sensex. Financials and energy stocks remained subdued. Also, there was hardly any significant news flow on the domestic front, however, in the coming days the focus will remain on monthly numbers from Auto companies and on the GDP numbers.
Technology stocks closed in negative territory mainly due to steep weakness in dollar index, which has directly helped our currency to strengthen. The dollar index was quoting at 97.50/98.00 from where it weakened to 96.70/96.80 on Monday. Technically, the market is range-bound till the market is not crossing 12,300 levels, it could come down to 12,100 levels. Above 12,300 levels, Nifty has the scope to move up to levels of 12,350/12,360.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas:
Continuing with the positive momentum from Friday, the Nifty opened gap up today. On the higher side, however, the hourly upper Bollinger Band posed as a key barrier. The bears rushed in as the index neared the swing high of 12,293. Thus the index dipped into the negative territory despite the positive start. On the downside, the selling was absorbed near the key hourly moving averages & the 12,210-12,200 area indeed proved to be a good support. So the index bounced thereon in the second half of the session. Going ahead, the benchmark index is likely to consolidate in the range of 12,300-12,200 before climbing higher.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Immediate support for Nifty is coming near 12,210-12,150 zone if managed to hold above said levels can push index towards 12,300-12,350 zone which is immediate resistance in Nifty.
Nifty bank closed a day at 32,383 with loss of 29 points forming a bearish candle on daily chart, support for index is coming near 32,250-32,100 zone and resistance is coming near 32,600-32,750 zone.
Ajit Mishra, VP - Research, Religare Broking:
We expect markets to remain range bound this week due to lack of any major domestic as well global triggers. The market participants would keep a close watch on auto sales data. Recently, auto stocks have seen a decent run up in the recent past in anticipation of revival in volume growth. However, December has always been a soft month especially for the passenger vehicles and the two wheeler industry. Apart from this, movement in crude oil and currency would be actively tracked by traders.
Market Close: Indian indices ended with little change in the volatile session on December 30 with Nifty above 12,250.
At close, the Sensex was down 17.14 points at 41,558.00, while the Nifty was up 10.10 points at 12,255.90. About 1423 shares have advanced, 1108 shares declined, and 192 shares are unchanged.
Tata Motors, Eicher Motors, UPL, Vedanta and Hero MotoCorp were among major gainers on the Nifty, while losers were Yes Bank, ICICI Bank, SBI, IOC and Axis Bank.
Among sectors, except PSU bank all other indices are ended in the green led by the auto, metal, FMCG and pharma.
Reliance Jio added 91 lakh users against addition of 69.8 lakh users, MoM
Vodafone Idea added 1.89 lakh users against loss of 25.7 lakh users, MoM
Bharti Airtel added 81,974 users against loss of 23.8 lakh users, MoM
Jubilant Life Sciences to early redeem NCDs: The committee of the board of directors at its meeting held on December 30, 2019, approved the early redemption of non-convertible debentures of Rs 745 crore of the company. The same shall be paid on January 7, 2020.
Andhra Bank gets RS 200 crore from government: The bank has received capital infusion of Rs 200 crore towards contribution of the government in the preferential allotment of equity share of the bank during the financial year 2019-20, as government’s investment.
Buzzing: Oricon Enterprises share price rose more than 9 percent on December 30 after company has prepaid the term loan of Rs 300 crores taken from Indiabulls Housing Finance by making prepayment of balance amount of Rs 128.57 crores on December 27, 2019.