A Great Show By Bulls, Nifty Heading To 12600

Our Analysis

During the week, bulls strongly pushed the frontline indices to the all-time highs. The Nifty 50 and Nifty Bank which were hesitating to breach the respective levels and hit the high finally made it this week. However, the ongoing noises about the GDP data dragged the market a bit on the last day of the week.

The market witnessed a broad-based rally where numerous stock/sector performed strongly after a long time. We can also see that the November series turned to be a trend-changer (negative-to-positive) for many of the beaten-down sectors and stocks.

Going forward, In December series, we expect the broader market to outperform the benchmark indices. Analyzing the historical trend, the December month trades with the lower volume amidst the holidays across the globe. On an immediate basis, the GDP Data would influence the trading activity in next week. Along with that, the RBI monetary policy expectation would create a buzz in interest-sensitive sectors.

Technically, On Downside 11,837 would the stiff support in the December series, While 12,670 in upside would be the chase for Nifty.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, the benchmark indices ended marginally lower with Nifty failed to hold above 11,900. At close, the Sensex declined by 72.50 points at 40284.19, while Nifty fall by 11 points at 11,884.50. Among sectors, metal, pharma, PSU bank, infra witnessed buying, while auto and FMCG were down.

2) On Tuesday, Indian equity benchmarks ended lower, halting their two-day gaining streak after hitting record highs in the opening trade. the Sensex was down 67.93 points or 0.17% at 40821.30, while Nifty was down 36.10 points or 0.30% at 12037.70. Among sector, the Nifty Bank index ended in the green, while All other sectoral indices closed in the red.

3) On Wednesday, Indian equity benchmarks closed at record highs helped by investors pumping in money in the final hour of trade. At close, the Sensex was up 199.31 points or 0.49% at 41020.61, while Nifty was up 63 points or 0.52% at 12,100.70.

4) On Thursday, the Sensex ended up 109.56 points, or 0.27 percent, at 41,130.17, a fresh record closing high. The Nifty index also ended at a new record closing high of 12,154.30, up 53.60 points, or 0.44 percent, from its previous close on the day of November series futures and options (F&O) contract expiry.

5) On Friday, after two days of run, the benchmark indices cooled off and ended lower but recovered from the day's low on the back of buying seen in the last hour of trade. the Sensex was down 336.36 points or 0.82% at 40793.81, while Nifty was down 95.20 points or 0.78% at 12056.

Broader Index & Global Market:

-Globally, Major markets were mostly positive for the week, the Chinese markets being an exception. Chinese equities remained under pressure on the back of ongoing turmoil in Hong Kong. Tensions rose between the US and China after the US passed a law supporting the Hong Kong protests.

-The broader pack had been trading positive in this week. The Mid & Small-cap continued to remain strong compared with the benchmark. The telecom, Pharma, Banks, and cement sector created a lot of buzz this week.

Movers & Shakers

Shares of L&TFIN surged more than 25 percent on plans to raise Rs 60 crore through a private placement of Non-Convertible Debentures (NCDs).

Shares of ZEEL dropped more than 20 percent in a week after Two former directors Subodh Kumar and Neharika Vohra - who resigned from its board, had raised concerns over several issues.

Key Market Drivers

• BSE offers a non-competitive bidding facility in SDLs to the retail investors.
• PSBs collect Rs 1,996 cr in the minimum balance penalty in FY19.
• China's industrial profits fall 9.9% year-on-year in October.
• US goods trade deficit narrows sharply in October.
• RBI revises the framework on currency swap arrangement for SAARC countries.

Event Watch

International:

• US Trade Balance

Domestic:

• Crude price
• INR Price
• Markit India PMI Services
• RBI Monetary Policy.

Stocks To Watch

IPCALAB & BOB On Upside while, CUMMINS & COLGATE on Downside.