Nifty ends at 12,260, Sensex closes flat

BSE Sensex dropped 17 points at 41,558

3.35 pm

Closing Bell:

After a positive start for both the indices, the day saw volatile jumps.

Opening with 100 points jump, BSE Sensex closed flat at 41,558.00, thus dropping 17.14 points or 0.04 per cent. Mahindra and Mahindra ended with 1.50 per cent jump along with Tata steel, Bharti Airtel and Sun Pharma. In the red boxes were Ultratech Cement, HDFC, NTPC, and Infosys.

BSE Telecom, Auto and Metal sectoral indices were in the postive. Whereas, BSE finance, Information Technology and Teck ended on a negative note.

 

The broader NSE Nifty50 started the day in green and also ended in green but had dropped during the day. The index ended at 12,260.60, a 14.80 points increase. The top gainers in the Nifty pack were Tata Motors with a jump of 4.26 per cent. Eicher Motors followed the green list ending with 2.26 per cent increase. UPL, Vedanta followed the list.

In the losers end were Yes Bank with 1.15 per cent change. ICICI Bank with 0.89 per cent change in negative. State Bank of India, TCS, and Indian Overseas Bank followed the red list.

In the Nifty sectoral indices list, PSU banks ended with a 1.17 per cent or 30.15 point drop. Among others were Information technology, Bank and financial services. In the green was led by Nifty Auto with 1.51 per cent change. This was followed by metal, pharma and FMCG.

 

3.15 pm

Reliance, BP pay $36 mn for exit of Niko in KG-D6 block

Reliance Industries and UK’s BP plc paid USD 36 million to get their defaulting Canadian partner Niko Resources to exit from the eastern offshore KG-D6 block.

In a statement, Niko said it has exited from the KG-DWN-98/3 block and its 10 per cent stake has been taken over by Reliance and BP.

The firm was paid $36 million to settle an arbitration it had initiated against Reliance and BP trying to force it out of the block over default in payment.

“An amendment to the production sharing contract for the D6 Block in India has been executed, reflecting the assignment of the 10 per cent interest previously held by the company’s indirect subsidiary, Niko (NECO) Ltd to the remaining interest holders in the block, Reliance Industries Ltd and BP Exploration (Alpha) Ltd,” the statement said.

Subsequent to this, Reliance’s stake in KG-D6 has gone up to 66.67 per cent from the previous 60 per cent and that of BP to 33.33 per cent from 30 per cent.

 

3.00 pm

 

Dr Reddy’s launches generic hypotensive injection in US

Dr Reddy’s Laboratories Ltd

 

Drug firm Dr Reddy’s Laboratories on Monday said it has launched in the US Sodium Nitroprusside injection used for immediate reduction of blood pressure in hypertensive crises. The company has launched generic Sodium Nitroprusside injection, 50 mg/2 ml (25 mg/ml) single-dose vial after getting approval from the United States Food and Drug Administration (USFDA), Dr Reddy’s Labs said in a filing to the BSE.

The product is a generic version of Hospira Inc’s Nitropress injection, 50 mg/2ml, it added.

Shares of Dr Reddy’s Laboratories were trading at ₹2,902 per scrip on the BSE, up 0.25 per cent from the previous close

2.45 pm

Lower credit offtake by firms, a sign of balance sheet clean-up: Shaktikanta Das

 

“Every decision taken at the central bank is attributed to the Governor and the buck stops with him,” said Shaktikanta Das, Governor, Reserve Bank of India, who recently completed the first year of his three-year term.

In an interaction with BusinessLine, Das said that with banks linking (retail and micro, small and medium enterprise) loans to an external benchmark, the transmission of the repo rate cuts into the credit market will happen faster.

The Governor observed that corporate’s lacklustre appetite for credit could perhaps be due to balance-sheet clean-up, deleveraging and pre-payment of loans. He added that some green shoots (of growth recovery) were visible. Read the excerpts here

 

2.30 pm

 

Afternoon session: Sensex, Nifty still in red

The 30-stock BSE Sensex pack has given up on positives for the afternoon session. The index is now trading at 41,504.34 with a drop of 70.80 points or 0.17 per cent. Of the total 2,630 stocks, 1,307 have advanced, 1,153 declined and 179 remained unchanged. The positive stocks in the Sensex list, Bharti Airtel with an increase of 1.66 per cent. The other stocks are Sun Pharma, Hero moto corp, and ITC. In the red zone were Reliance, Titan, ONGC, and State Bank of India.

 

The broader NSE Nifty 50-pack reached 12,235.30. There was a drop of 10.50 points or 0.09 per cent. The advances were 1026, declines stood at 763, unchanged stayed at 379. The top gainers in the afternoon session were Tata Motors with a change of 2.30 per cent, followed by Bharti Airtel, Sun Pharma and Zee Entertainment Enterprise. The losers in the Nifty 50 list were Infosys with a drop of 1.13 per cent. Next in line was Hindustan Unilever, State Bank of India, ICICI bank and Axis bank.

1.55 pm

Prince Pipes shares tank over 10% in debut trade

Shares of Prince Pipes And Fittings made a weak debut at the bourses on Monday, falling over 10 per cent from its issue price of Rs.178.

The scrip opened at Rs.160, down 10.11 per cent from the issue price on the BSE. It later hit a low of Rs.152.60, registering a sharp fall of 14.26 per cent.

On the NSE, it listed at Rs.160. As the trade progressed it tanked 14.32 per cent to a low of Rs 152.50.

The initial public offer of Prince Pipes and Fittings was subscribed 2.21 times.

The IPO was in a price range of Rs.177-178 per share.

JM Financial and Edelweiss Financial Services are the managers to the offer.

Prince Pipes has manufacturing facilities in Dadra and Nagar Haveli, Uttarakhand, Maharashtra, Tamil Nadu and Rajasthan.- PTI

1.40 pm

Will 2020 have a sharp vision?

A 2020 vision is used to describe the ability to see things sharply, at a 20 feet distance. Modi would need it in the coming year, 2020. His first term focussed on economic reforms, and initiatives such as Swachh Bharat (Clean India), Direct Benefit Transfers (to avoid leakages), Ayushman Bharat (insurance cover), Digital India (to reduce the dependence of cash), Ujjwala Yojana (for LPG gas connection) and others. These helped him win a thumping majority for a second term, and expectations were high that he would accelerate the pace of economic reforms. Instead, the focus of the government is now more on correcting past wrongs, which has resulted in unrest.

Looking back, 2019 started as year with plenty of global concerns. North Korea, with its nukes, China’s growth, Iran’s blockade of the Straits of Hormuz, and the continuing US-China trade spat.

Ultimately, none of these concerns got played out, and, thanks to extremely low interest rates and easy money, which flowed into assets (more than to help create consumption demand or investment demand) stock markets are at a high.

So, what does 2020 portend? What are the risks to stock markets/investors?

Find out about this here

 

1.30 pm

2020 belongs to small- & mid-cap stocks: Analysts

 

After facing a near two-year bear market, small- and mid-cap stocks are likely to make a strong comeback in 2020 and may even outperform benchmark equity indices Sensex and Nifty, experts told BusinessLine.

Data of past two decades, when small- and mid-cap indices were first introduced by the stock exchanges in late 1990s, suggests that a bear market cycle for these indices typically lasts for 13-21 months.

The current bear market cycle for small- and mid-cap indices on the BSE and NSE had started in January 2018 and lasted for 21 months. During these months, the BSE Mid-cap and BSE Small-cap indices crashed 29.5 per cent and 40 per cent, respectively, from the all time high levels (18,312 and 20,183, respectively) seen in January 2018 to make a bottom in August 2019 (11,950 and 14,975, respectively). Similarly, the Nifty Mid-cap (100) and Nifty Small-cap indices had declined by 31 per cent and 47 per cent, respectively..

Read more about it here

1.10 pm

Nifty call: Nifty 50 January Futures (12,286)

 

The Indian benchmarks -- the Nifty spot and the Sensex spot index are trading marginally lower in today’s session. The major Asian indices are giving mixed signals as Nikkei has closed lower by nearly 0.8 per cent whereas the Hang Seng index is up by 0.8 per cent.

Following the spot index, the January futures contract of the Nifty 50 index too is trading lower. The contract opened the session at 12,326 versus its previous close of 12,319; after making an intraday high of 12,348, the contract started to decline as 12,350 is a critical resistance level.

The market breadth of the Nifty 50 index is almost flat with 27 out of the 50 stocks trading in the green. But the index seems to be witnessing high volatility as indicated by India VIX – the volatility index. It has shot up nearly 7 per cent today to 11.2 levels. Among the sectoral indices, the Nifty auto index is the top performer, up by 0.6 per cent whereas the Nifty PSU bank index is the top loser, down by 1.75 per cent so far in today’s session.

Even though the December futures contract of the Nifty 50 index is in an uptrend, it faces a critical resistance at 12,350 levels. Thus, the contract should break out of that level to continue the uptrend and so fresh long positions are not recommended at current levels. Since the risk-reward ratio is favourable for short positions, traders with higher risk appetite can initiate fresh short positions on intraday rallies with stop loss at 12,360.

Strategy: Initiate short positions on rallies with stop loss at 12,360

Supports: 12,250 and 12,230

Resistances: 12,350 and 12,390

1.00 pm

A recap of ‘Portfolio’ in 2019: Offering more to the investor

The year 2019 has been extremely challenging for investment advisors and analysts.

With the ongoing economic slowdown and weak global growth impacting demand, corporate earnings remain on the back foot.

The larger stock universe suffered as a result. Of the entire listed universe, over three-fourth of the stocks fell in 2019. But prices of a handful of large-cap stocks surged, making the returns of the Nifty 50 and the Nifty 500 indices look good.

It was also a year in which investors in debt received a rude shock, making them aware about the risks inherent in these instruments. Corporate defaults led to downgrades of debt instruments, leading to NAVs of debt mutual funds getting marked down.

This caused a flutter among investors who had till then believed that debt mutual funds were akin to bank fixed deposits.

With residential real estate prices, too, largely heading lower, gold was the only bright spot in investor portfolios.

We navigated through this torrid year by broad-basing our recommendations, including safer fixed-income instruments in our product recommendations and allocating considerable space to investor education.

Click to know the few highlights of our performance in 2019.

 

12.50 pm

Gold futures drop ₹60 to ₹39,020 per 10 gm

Gold prices on Monday dropped ₹60 to ₹39,020 per 10 gram in futures trade as participants cut down their positions even as the metal gained overseas.

On the Multi Commodity Exchange, gold prices for delivery in February fell by ₹60, or 0.15 per cent, to ₹39,020 per 10 gram in a business turnover of 1,566 lots.

The yellow metal for April delivery slipped ₹54, or 0.14 per cent, to ₹39,119 per 10 gram in 77 lots.

Analysts said despite positive overseas trend, weak sentiment at the domestic market led to fall in gold futures price.

Globally, gold was trading 0.02 per cent higher at $1,518.40 an ounce in New York. - PTI

12.35 pm

BSE Sensex gainers and losers:

BSE Sensex gainers list

BSE Sensex losers list

 

 

12.18 pm

Tata Large & Mid Cap: Healthy returns in the long run

Investors looking to tap outperforming large-cap stocks along with growth-oriented mid-cap stocks can buy units of Tata Large & Mid Cap.

As the equity benchmark indices, the Sensex and the Nifty, scale new highs, driven by large-cap stocks, investors who missed participating in the rally can opt to invest in the equity-oriented, large- and mid-cap funds category, which is a new classification as per regulations launched by SEBI.

In this category, the fund has the flexibility to invest in both large- and mid-cap companies, each in the range of 35-65 per cent of the total assets.

Over the past one year, Tata Large & Mid Cap has delivered a 15.1 per cent return, outshining the benchmark index S&P BSE 200 TRI’s return of 12 per cent, as well as the category-average return of 10 per cent.

Though the fund has marginally underperformed its benchmark over the past three- and five-year periods, it has delivered above-category-average returns of 13.3 per cent and 9.5 per cent, respectively.

The scheme has outperformed its peers such as LIC MF Large & Mid Cap and Edelweiss Large and Mid Cap in the past one-year period. Investors can also opt to invest through the systematic investment plan (SIP) route with a minimum holding period of five years, so that they can reap the complete benefit.

TO KNOW MORE CLICK HERE

 

12.10 pm

Why NTPC is a good buy now

Power generation in India has been falling with shrinking industrial production.

This has prompted some investors to wonder if it makes sense to own stocks of power- generating companies. As a result, stocks such as NTPC have taken a pounding in the past six months. The stock has fallen nearly 20 per cent since BusinessLine’s last ‘buy’ call in May 2019.

But the fall in the stock price presents a good buying opportunity for investors with a long-term perspective.

The current dividend yield is a healthy 4.7 per cent. Besides, the stock is trading at a 12-month trailing price-to-earnings multiple of about eight times, below its three-year average multiple of about 11.5 times.

To know more click here

11.55 am

Sensex, Nifty give up on green

After being in green for openi ng session today, Nifty and Sensex have now given up.

The boarder 50-pack NSE Nifty dropped 16.95 points or 0.14 per cent and is now at 12,228.85. In the sectoral indices, Nifty -- bank, financial services, metal, PSU banks and realty have been pulling the index down.

 

The 30-pack BSE Sensex was  at 41,505.71, dropping around 69.43 points. Of the 30 stocks, 15 of them were in the red zone. This included UltraTech cement, Asian Paints, Tata steel, ICICI Bank and State Bank of India.

 

 

11.45 am

Gold gearing up for fresh uptrend

MCX COMDEX, the composite commodity index of the Multi Commodity Exchange (MCX), has been rising, driven by the bullish trend in its major components — crude oil and gold (combined weight is around 50 per cent).

Since the outlook for crude oil and gold is bullish, the index is expected to rise in the coming days.

MCX-Crude (₹4,416)

The January futures contract of crude oil rallied last week, extending its bull run. During the past week, the contract went past a prior high at ₹4,372, making higher peaks in the daily chart — a bullish indication.

The daily relative strength index (RSI) continues to rise, in tandem with the contract price; the moving average convergence divergence indicator, too, shows reasonable upward momentum.

Thus, the outlook is positive for crude oil.

For more on other commodities click here

11.35 am

Broker's call: NMDC (Buy)

 

Emkay Global

NMDC (Buy)

CMP: ₹125.9

Target: ₹145

The government recently approved the expansion of mining plan of NMDC’s Kumaraswamy mines in Karnataka from 7 mtpa to 10 mtpa. Though it needs environment clearance for this, the step reaffirms our view of impending iron ore shortage after March 2020.

The approval is for a period of two years only as the mining lease of Kumaraswamy mines will be up for renewal in 2022. We believe the renewal will not be a problem due to the recent amendment in the Minerals (Mining by Government Company) Amendment Rules 2019.

Steel production and prices have both started moving up from November 2019, paving the way for iron ore price hikes. Private miners in Odisha have already raised prices by ₹200-400/tonne in view of aggressive bookings by steel plants and we expect NMDC to follow suit.

We raise our FY21/22E sales volume/EBITDA/EPS by 6 per cent/8 per cent/8 per cent and 9 per cent/10 per cent/12 per cent. We also increase our target price by 9 per cent from ₹133 to ₹145, implying a 15 per cent upside from the current market price and raise our ‘Overweight’ position in EAP. Maintain Buy.

11.25 am

SBI cuts external benchmark-based rate by 25 bps

 

The country’s largest lender State Bank of India (SBI) on Monday announced a reduction in its external benchmark-based rate by 25 basis points to 7.80 per cent from 8.05 per cent.

The new rates will be applicable from January 1, 2020, the bank said in a statement. SBI “has announced the reduction in its external benchmark-based rate (EBR) by 25 basis points to 7.80 per cent p.a from 8.05 per cent per annum with effect from January 1, 2020,” it said. - PTI -- CLICK HERE TO READ MORE ABOUT IT

The shares of SBIN  are trading at Rs.334.35, a drop of 2.90 points or 0.86 per cent.
-2.90 

 

11.15 am

Inox Wind signs pact with Continuum Power Trading

Inox Wind on Monday said that it has entered into an agreement with Continuum Power Trading (TN) Pvt Ltd to supply, erect and commission 250 mw wind power projects in Gujarat.

“Inox Wind... has signed a term sheet with Continuum Power Trading (TN) Pvt Ltd, part of Continuum Wind Energy group, to supply, erect and commission 250 MW of wind power projects (in two phases of 126 MW and 124 MW) comprising of a mix of 2 MW (113 metre rotor diameter turbine combined with 92 metre hub height) and 3 MW (145 metre rotor diameter turbine combined with 120metre hub height) turbines,” the company said in a filing to BSE.

As part of the order, Inox Wind will provide Continuum Power with end-to-end solutions from development and construction to commissioning and providing long-term operations and maintenance services.

The shares of Inox Wind were trading at Rs 34.60 a piece on BSE. - PTI

11.05 am

Broker's call: Finolex Industries (Buy)

CD Equisearch

Finolex Industries (Buy)

CMP: ₹545.95

Target: ₹662

Headquartered in Pune, Finolex Industries is one of India's leading manufacturers of PVC-U pipes and fittings and PVC resin. Its pipes and fittings largely find use in the agriculture segment followed by construction and industrial segments. Its plants are located in Maharashtra and Gujarat.

The stock trades at 19x FY20e EPS of ₹28.59 and 16.4x FY21e EPS of ₹33.08. Recently announced massive tax cut immensely helped prevent a sharp decline in post tax earnings — profit before tax estimated to decline 22 per cent this fiscal.

Read more about the technicals here

10.55 am

A great year for Sensex, but dismal for most stocks

 

While the bellwether Sensex at 41,575 scaled new highs in 2019 with 15 per cent-plus gain, the rally has been narrow and driven by a handful of large-cap stocks.

In contrast to the 30-stock Sensex’s strong show, most listed stocks have not been able to keep their heads above water in the year gone by. Nearly 80 per cent of the 2,277 stocks quoting on the BSE since the last year have lost value in 2019; just about one in five have gained. The BSE Mid-cap index is down 3 per cent, while the BSE Small-cap index lost close to 8 per cent.

About 1,240 stocks, or more than half the listed universe, have slipped at least 25 per cent over the year, and about 480 — more than a fifth of the listed space — are down 50 per cent or more. Down the pecking order, about 60 stocks lost 80 per cent or more, and about 30 have been nearly decimated with a decline of over 90 per cent in their value.

Read more about our year-end report here

10.45 am

RCap gets back 100% shareholding in Reliance General Insurance

 

The Insurance Regulatory and Development Authority of India (IRDAI) has cancelled the enforcement of pledged shares of Reliance General Insurance Company Ltd (RGICL) by Credit Suisse and Nippon India Mutual Fund. The regulator has held that the move was in violation of law.

With this, the 100 per cent shareholding of Reliance Capital Ltd (RCap) in RGCIL stands restored. “IRDAI has directed the Trustee not to give effect to any encumbrance/transfer or any change in the Shareholding of the RGICL,” RCap said in a statement.

TO KNOW MORE ABOUT IT CLICK HERE

Reliance Capital Ltd (NSE) on Monday trade has gained 4.85 per cent and thus is now at Rs.14.05.

10.35 am

Why the RIL stock rallied

After slipping earlier last week, the stock of Reliance Industries (RIL) gained about 2 per cent on Friday. A couple of factors seems to have helped the stock rebound.

One, RIL’s plan to offer one share in the company for four shares in its unlisted subsidiary Reliance Retail values the retail business at about ₹2.5-lakh crore — double that of peer Avenue Supermarts that had a blockbuster IPO in 2017.

However, the stock on NSE is now at Rs.1,538.80, with a drop of 3.55 points or 0.23 per cent. 
 

10.25 am

NSE Gainers and Losers:

The top ten gainers in the broader 50-pack NSE Nifty was IndusInd Bank ltd with  a change of 1.34 per cent. The next in line were the stocks of Mahindra and Mahindra with jump of 1.27 per cent. Others that made it to the list were ITC, Kotak Mahindra Bank and TCS.

NSE NIfty 50 gainers list

 

In the losers list of the 50-pack gauge was Coal India ltd with a drop of 0.96 per cent. Followed by BPCL with 0.92 per cent change. Others in the list were Tata Steel, Reliance and State bank of India.

NSE Nifty 50 losers list

 

 

10.15 am

Stock trading call: Buy Snowman Logistics

 

Investors with a high risk appetite can buy the stock of Snowman Logistics, a small-cap company, at current levels. In August, the stock registered a new low at ₹26.6 and arrested its long-term downtrend.

It took support in the band between ₹26 and ₹28 in September and began to trend upwards, triggered by positive divergence in the weekly moving average convergence divergence indicator. Since then, it has been in a medium-term uptrend.

While trending up, the stock had breached a key resistance at ₹35 in late September, which turned into significant support levels. The stock took support from ₹35 in early December and continued to trend upwards, and has been in a short-term uptrend.

Last Friday, the stock surged 4 per cent, accompanied by an above-average volume, strengthening the uptrend.

A decisive rally above the current resistance can pave the way for an up-move to ₹46 and then to ₹50 over the medium term, with a pause at ₹46. Traders can buy with a deep stop-loss at ₹38.

Click here to read more about the technicals here

10.05 am

 

Daily Rupee call: Buy with stop loss at 71.6

 

The rupee (INR) began the session on Friday at 71.3 against the dollar (USD). But after registering an intraday high of 71.19, the local currency weakened and ended the week at 71.35. The rupee has been the weakest Asian currency in the past week. This is despite the one-year forward spread of USDINR stabilising around 310 points and weakening dollar index.

Though the price action indicates a bearish bias, 71.4 is a considerable support for the Indian currency. Also, the 50 per cent Fibonacci retracement level of the prior trend is at 71.38, making the price level a significant support. Thus, the rupee might start its deceleration at current levels. If the local currency strengthens on the back of the support at 71.4, it will face hurdles at 71.2 and 71. On the other hand, if the support is breached, the subsequent support is at 71.6.

Trade strategy:

Though the rupee is trading with a negative bias, fresh short positions are not recommended at current levels as 71.4 is a strong support. Moreover, the dollar seems to be facing selling pressure. Hence, traders are advised to initiate rupee longs on declines with 71.6 as stop loss.

Supports: 71.4 and 71.6

Resistances: 71.2 and 71

Read more about the rupee call here

9.55 am

 

Sensex, Nifty in green

Equity benchmark BSE Sensex jumped over 100 points in opening session on Monday tracking gains in banking, FMCG and IT stocks.

The 30-share BSE index was trading 109.18 points or 0.26 per cent higher at 41,684.32, and the broader NSE Nifty rose 27.60 points or 0.23 per cent to 12,273.40.

ITC was the top gainer in the Sensex pack, rising up to 1.50 per cent, followed by Mahindra and Mahindra, HDFC Bank, Kotak Bank, TCS, Maruti and Sun Pharma.

On the other hand, RIL was the top loser, shedding up to 0.76 per cent. SBI, HUL, Tata Steel and Infosys were also trading in the red.

In the previous session, the 30-share gauge ended 411.38 points, or 1 per cent, higher at 41,575.14. Similarly, the broader NSE Nifty closed 119.25 points, or 0.98 per cent, up at 12,245.80.

Meanwhile, on a net basis, foreign institutional investors bought equities worth Rs 81.37 crore, while domestic institutional investors purchased shares worth Rs 125.77 crore on Friday, data available with stock exchange showed.

According to experts, traders appeared keen on creating fresh positions post expiry of December series derivatives contracts.

Cue from FinMin

Domestic market is awaiting cues from the budget after Finance Minister Nirmala Sitharaman on Saturday said that honest commercial decisions taken by bankers will be protected.

In a meeting with heads of the public sector banks (PSBs), also attended by the CBI Director, she assured the bankers that a distinction would be made between genuine commercial failures and culpability.

Oil markets

Bourses in Shanghai and Hong Kong were trading significantly higher in their respective early sessions, while those in Tokyo and Seoul were in the red.

Brent futures, the global oil benchmark, rose 0.19 per cent to USD 67 per barrel, after the US has carried out air strikes against a pro-Iran militant group in Iraq, killing 15 fighters.

The US strikes came after a barrage of 30 or more rockets was fired on Friday at the K1 Iraqi military base in Kirkuk, an oil-rich region north of Baghdad, killing a US civilian contractor and wounding four US service members as well as Iraqi security forces.

Meanwhile, the rupee appreciated 2 paise to 71.32 against the US dollar in morning session.- PTI

 

9.45 am

Weekly Trading Guide

SBI (₹337.2)

The bull trend in the stock of SBI is struggling to carry the momentum as the price seem to be stuck between ₹325 and ₹340 for quite some time. It is traversing across the 21-day moving average, which is at ₹331, which means there is no clear trend. Thus, the stock must move out of this price band to confirm the next leg of the trend. But since the support at ₹325 is considerably strong, the stock can be approached with a bullish bias until the price stays above that level.

The 23.6 per cent Fibonacci retracement level of the previous bull trend coincides with ₹325, making the support significant. Even though the daily relative strength index is staying above the midpoint level of 50, it is visibly flat. Also, the moving average convergence divergence is flat, unable to hint the upcoming trend.

From a trading perspective, rather than buying at current levels, traders can either buy when the price moderates to ₹330 or when the price decisively breaks above ₹340. Place the stop- loss at ₹320. The immediate resistance is seen at ₹351, its prior high. The resistance above that level is at ₹362.

To know more about the details of other stocks click here

 

9.35 am

 

Go long on ONGC futures

 

The long-term outlook for Oil and Natural Gas Corporation (Rs 128.3) remains negative. However, in the short-term, it may remain positive. The stock has major support at Rs 117 and a close below that level alone can change the short-term outlook to negative. On the other hand, it finds an immediate resistance at Rs 132 and a major one at Rs 144. A close above the latter could also change the medium-term outlook to positive. Only a close above Rs 180 would change the long-term outlook to positive for ONGC.

Having breached several resistance levels, ONGC may move sideways, before charting a rally. Click here to read more about the technicals

9.25 am

 

Asian shares down from 18 month top; oil steady after US strikes

A broad gauge of Asian share markets fell on Monday as investors consolidated gains after scaling 18-month highs last week, while oil was steady after the US carried out air strikes on an Iranian-backed Shi'ite Muslim militia group in Iraq and Syria.

Around 0145 GMT, MSCI's broadest index of Asia-Pacific shares outside Japan was 0.09 per cent lower. The index had touched its highest level since June 19, 2018 on Friday, lifted by investor hopes that a US-China trade deal would be signed soon. Chinese blue chips were 0.15 per cent lower, while Australian shares shed 0.56 per cent. Japan's Nikkei stock index slid 0.51 per cent.

Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January.

Read more about the Asian market here

9.17 am

 

Opening bell

NSE Nifty 50 opened with at 12,269.65, making a 23.85 points jump.

The BSE Sensex started with 68.92 points jump at 41,644.06. In the previous close, BSE sensex had zoomed 400 points.

9.10 am

Shares on focus

RattanIndia Power on Friday said its board has approved a proposal to issue securities to its lenders as well as promoter entity RR Infralands Private Ltd to pare debt. The lenders had funded the 1,350 MW, Phase - I, thermal power project in Amravati, Maharashtra. The consortium includes PFC, Axis Bank, UCO Bank, LIC, Bank of India, Central Bank of India, SBI, PNB, Canara Bank, United Bank, Syndicate Bank and REC. The lenders would be issued 80.57 lakh shares of face value ₹10 each.

Adani Logistics has acquired a majority stake in Snowman Logistics for ₹296 crore, marking its foray into cold-chain logistics. Adani Logistics, a wholly owned subsidiary of Adani Ports and SEZ Ltd, has signed an agreement to acquire 40.25 per cent stake or 6.72 crore shares in Snowman Logistics from Gateway Distriparks, at ₹44 a share. This would trigger a mandatory open offer to the shareholders of Snowman Logistics. Shares of Gateway Distriparks and Snowman will remain in focus.

 

9.00 am

 

Index Outlook: Sensex and Nifty stay above vital bases

The equity benchmark indices — the Sensex and the Nifty — started the past week on a subdued note and subsequently turned choppy during the December derivatives expiry session.

But the indices made strong gains on Friday, recovering the initial loss. The December auto sales number, rupee movement against the dollar and crude oil price, along with developments in the global markets, need to be watched in the coming week .

Read more about it here

Published on December 30, 2019