Nifty ends 55 pts shy of record high; Yes Bank sinks 5% after independent director resigns

Taking Stock: Another record high for Nifty50! What should investors do now?

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.... Read More

The Nifty shifted into a consolidation today at the new all-time high of 12,311 levels and closed higher. A small negative candle was formed today with upper and lower shadow at the new high.

Technically, formation of high wave at the key overhead resistance or at new highs could be considered as a confusion state of mind among investors. This pattern could lead to a reversal pattern on the confirmation.

Nifty formed a positive candle with long lower shadow in this week, which indicates a strong comeback of bulls from the lower levels. The overhead key resistance of 12,350-400 remains intact on the upper side and we expect consolidation or minor downward correction in the market for the next week.

The company has posted 11 percent sequential growth in the third quarter (October-December) profit at Rs 4,457 crore, from Rs 4,019 crore QoQ and the year-on-year growth was 23.5 percent.

Constant currency revenue growth for the quarter stood at 1 percent. The company revised its full year constant currency revenue growth guidance to 10-10.5 percent, from 9-10 percent earlier, but maintained its EBIT margin forecast 21-23 percent for FY20.

Markets traded volatile in a range and settled with modest gains amid mixed cues. The sentiment was upbeat in early trades, thanks to favourable local cues and the statement from the Prime Minister over the state of the economy further added to the positivity. The benchmark indices tested new record high in the first half but profit-taking in the latter half trimmed the gains.

Markets will first react to the IT major, Infosys, results in the early trade on Monday. We reiterate our positive yet cautious approach on the benchmark index and suggest awaiting a decisive breakout above 12,400 in Nifty for sustainable up move. Meanwhile, volatility would remain high on the stock-specific front due to prevailing earnings season and global uncertainty so plan your trades accordingly.

The Nifty witnessed heightened volatility in the week gone by owing to the global cues. The week started on a negative note & the index went down to slip below 12,000 mark. Nevertheless, the Nifty recovered towards the end of the week & even registered a new all-time high of 12,311 on Friday. As a result, the index formed a bullish outside bar for the last week. This shows that the overall trend for the index continues to be strong. However the market can continue to remain volatile in the near term. Further consolidation in the range of 12300-12000 cannot be ruled out in the sessions to come. The daily Bollinger Bands are entering into a contraction phase, which is in confirmation with the expected consolidation.

The major development during the week was the spike in geopolitical tensions between the US and Iran, prompting the markets to nosedive in the first half of the week. However, as the tension between the two warring nations subsided over the next few days, the Sensex rebounded sharply thereafter from initial slump. Further, crude prices too cooled off after rising to as high as USD 70 per barrel. ONGC, Hero Motocorp and Bajaj Finance were among the top losers in the BSE-30 Index, while Ultratech Cement, TCS and HCL Technologies bucked the trend and emerged top gainers. On the economy front, the NSO expects FY2020 real GDP growth to decelerate to 5 percent from 6.8 percent in FY2019. FPIs bought equities worth USD 105 million over the past five trading sessions while DIIs sold USD 26 million worth of shares in the same period.

Benchmark indices ended higher for the second consecutive day on January 10 with Nifty recorded a fresh high of 12,311.20 during the session.

At close, the Sensex was up 147.37 points or 0.36% at 41599.72, while Nifty was up 40.60 points or 0.33% at 12256.50. About 1389 shares have advanced, 1133 shares declined, and 171 shares are unchanged.

Coal India, Gail, Maruti Suzuki, Infosys and UltraTech Cement were among major gainers on the Nifty, while losers include Yes Bank, Zee Entertainment, ICICI Bank, IndusInd Bank and Titan Company.

All the sectoral indices ended higher led by the metal, IT, realty, auto, FMCG, infra and pharma.

Oil slipped towards USD 65 a barrel on Friday as the threat of war in the Middle East receded and investors focused on rising USinventories and other signs of ample supply.

Adani Group gets security clearance for Ahmedabad, Lucknow and Mangalore airports. The concession agreement for 3 airports likely to be signed soon, quoting source, reported CNBC-TV18.

: Edelweiss Financial Services share price locked at 10 percent lower circuit after report that the Enforcement Directorate (ED) summons Edelweiss Group chairman Rashesh Shah. However, Edelweiss sources said that the reports are completely false and motivated.

: TheJLRretail sales up 1.3 percent at 52,814 units.JLRChina sales rose 26.3 percent, while Europe sales down 5.3 percent,YoY.