Indian markets which started on a muted note recouped most of the losses and turned green in the second half of the trading session on November 11.
The final tally on D-Street – the S&P BSE Sensex rose 21 points to 40,345 while the Nifty50 closed 5 points higher at 11,913.
Going forward, technical experts believe that fresh shorting opportunity may arise on a close below 11,830 levels for a target close to 11,700 levels. On the flip side, a close above 12,034 could put bulls back in the driver’s seat.
Sectorally, plenty of action was seen in banks, public sector, oil & gas, and realty indices while profit-taking was seen in IT, FMCG, Energy, and auto index. The broader market outperformed frontliners with BSE Midcap and BSE Smallcap ending with 0.17-0.29 percent gains
Nifty Bank, on the other hand, is now less than 2 percent away from a record closing high.
In the near-term, 30,400-30,600 is the support zone for the Bank Nifty, and a breach of the support zone can trigger sharp profit-booking towards the next support of 29,700, suggest experts. Meanwhile, resistance is placed at 31,100-31,400.
The market would react to the industrial production data for September on Wednesday. Indian market would remain shut on Tuesday on account of a public holiday. On the global front, any development around the US-China trade deal will add to positive sentiment.
“We continue to maintain our cautious stance on Indian markets given the recent run-up. Going forward, the last leg of the earnings announcement, key data like CPI/WPI and IIP is likely to induce volatility into the markets,” Ajit Mishra Vice President, Research, Religare Broking Ltd told Moneycontrol.
“On the global front, market participants would keep a close watch on trade developments between US-China as the two approaches closer to sign phase one of the trade deal,” he said.
Top Nifty gainer – ZEE Entertainment (up 6%), YES Bank (up 5.8%), and BPCL (up 2.9%)
Top Nifty losers – Vedanta (down 1.8%), Hindalco (down 1.8%), and Hero MotoCorp (down 2%)
More than 1,000 small & midcap companies will declare their results for the September quarter in the next two days.
Stocks & Sectors:
The action was seen in the Banking space – the S&P BSE Bankex was up 1.2 percent, followed by Public Sector which rose 1.1 percent amid divestment talks, and Oil & Gas index gained nearly 1 percent.
Profit-taking was seen in IT which was down 0.6 percent, followed by the FMCG index which fell 0.56 percent, and the Auto index was down 0.38 percent.
Volume Spike of 100-800 percent was seen in stocks like Container Corp, Ashok Leyland, NIIT Tech, NTPC, Balkrishna Industries, Equitas, and Amara Raja Batteries.
Long Buildup – Amara Raja Batteries, Ashok Leyland, RBL Bank
Short Buildup – Indiabulls HF, Balkrishna Industries, NMDC
Stocks in news:
Tata Motors up nearly 2 percent as China JLR sales see a rebound
Shares of Essel Propack ended 10 percent higher after the company reported better-than-expected numbers in the quarter ended September 11.
Shares of Amara Raja Batteries rallied 10 percent on after brokerage houses retained bullish stance on the stock as the company showed consistent margin growth performance in Q2FY20.
Shares of Affle India rallied 7 percent after Japanese brokerage firm Nomura had initiated coverage with a buy rating on the stock and the target price at Rs 1,900, implying 36 percent potential upside from current levels.
Shares of Vodafone Idea gained 5 percent on November 11 after Brickwork Ratings revised the credit rating of the company's non-convertible debentures (NCDs).
Technical View:
Nifty formed a small bullish candle. It now faces resistance near 5-days EMA
For the time being, the near-term support for Nifty50 is placed at 11,850 levels
In case bulls manage a sustainable trade above 11,932 levels in the next session, the strength may get extended up to 12,034 levels
A breach of 11,850 – 11,833 levels on a closing basis shall accelerate the selling pressure further.
Fresh shorting opportunity shall arise on a close below 11,830 levels for a target close to 11,700 levels, Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
Three levels to watch on Wednesday -- 11,850-11,830, 11,932, 12,034
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