Taking Stock: Sensex hits record high; Nifty flirts with 12K for the first time since June

The Nifty50 had a touch and go moment with 12,000 levels for the first time since June 11. Meanwhile, the S&P BSE Sensex rallied to a fresh record high of 40,606.91 in intraday trade on November 6.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 221 points to a record closing high of 40,469 while the Nifty50 ended 48 points higher at record closing high of 11,966. It hit an intraday high of 12,002 and an intraday low of 11,850.

Positive commentary from the Finance Minister, a bounce-back in banking space, as well as some stable results from India Inc, helped the sentiment. Experts feel that the upside is intact and investors should use dips to accumulate stocks or create long positions.

The action was seen in the S&P BSE Realty index, followed by Bankex, and Metal index while profit-taking was seen in the Consumer Durables, Telecom, and Energy stocks.

"Market clocked a new high based on a commitment from the FM to speed up reforms shortly. Realty & financials outperformed in expectation of new measures while metal stocks gained owing to easing the global trade war,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

“Better results from index heavyweights kept expectation high for earnings growth, influencing investors to stay in the market,” he said.

Top Nifty gainers: Infosys, ICICI Bank, Cipla, up more than 2 percent each

Top Nifty losers: Titan fell over 9 percent, Bharti Airtel (over 3 percent) and Indiabulls Housing (2.5 percent)

Sectorally, the S&P BSE Realty index was up 2.5 percent, followed by the Bankex which was up 1.39 percent, and the Metal index that was up 0.7 percent.

On the losing front, the S&P BSE Consumer Durables index was down 5.3 percent, followed by the S&P BSE Telecom index which was down 2.6 percent, and the S&P BSE Energy index was down 0.68 percent.

Broader markets performance remain mixed, the S&P BSE Midcap index was up 0.15 percent, while the S&P BSE Smallcap index was down 0.36 percent.

Volume spike was seen in stocks like Cipla, Lupin, Godrej Consumer Products, Bosch, Titan Company, Exide Industries, Chola Finance, and Aurobindo Pharma.

Long Buildup – Lupin, Colgate Palmolive, Canara Bank

Short Buildup – Voltas, Titan, CESC, Bharti Infratel

Share of Titan Company tumbled nearly 10 percent after the company reported a muted set of numbers for the quarter ended September 2019. CLSA slashed target price to Rs 1,025 from Rs 1,350 earlier and downgraded the stock to sell from underperform.

Shares of Infosys gained 2.3 percent after co-founder Nandan Nilekani said the company was committed to defining and following the highest corporate governance standards.

Godrej Properties share price ended over 3 percent higher after the company reported a 50 percent YoY rise in consolidated net profit at Rs 31 crore for the quarter ended September 2019.

Shares of Aurobindo Pharma closed with loses close to 5 percent after the US health regulator issued four observations to the company's Hyderabad units.

Sun Pharma Advanced Research Company (SPARC) closed with gains of over 6 percent after the company entered into a licensing deal with China Medical System Holding (CMS).

PC Jeweller rallied over 8 percent after the company settled the share buyback case with capital market regulator SEBI. SEBI said adjudication proceedings against the company have been disposed off.

Maruti Suzuki share ended in the red for 3rd consecutive session, down 1 percent after Suzuki cuts Indian biz guidance

Nifty forms a Bullish candle on daily charts

It took support near its 5-Days EMA at 11,904 before bouncing back

For the time being market likely to consolidate in the zone between 12,000 –11,850 levels

In case of an upward breakout above 12,000 levels will open doors for the index to hit record highs above 12,103

Whereas a breach of 11,850 on a closing basis could take the Nifty towards 11,740 - 11,700 levels.

For time being traders are advised to remain focused on stock-specific opportunities by taking a neutral stance on the index, suggest experts.