Positive Vibe To Continue, Nifty on its way to 12660

IT, Pharma, Metal Stocks Push Markets to New Highs

Our Analysis

With a steady approach, benchmark indices stepped up slowly this week. Sensex advanced to its all-time high as well nifty scaled up to near its all-time high. Though the rally was evident, the key highlights of this week were the value-based buying, where the individual counter had shown the outperformance compared with the indices.

The robust Q2 numbers, aggressive measure from the government (among which 25,000 CR funds for completion of stalled residential projects was a major sentiment booster) and the companys entering in MSCI indices created a whole lot of buzz in the street.

Going ahead, the positive vibe is likely to continue which is evident by the strong FII inflow. The positive approach by the government to revive the economy on all fronts is appreciated by FIIs. The better than expected Q2 earnings, easing of the US-China trade deal is expected to keep investor sentiment higher.

Technically, The Nifty is respecting the 9-EMA on the daily chart which provides the support near 11,880. However, the sustain above the 11,970 levels would keep the momentum strong and the target of 12,660 would be on the chase for Nifty.

This Weeks Market Highlights:

Benchmark Indices:

1) Indian financial markets were strong on Monday, The benchmark S&P BSE Sensex rose 147 points, or 0.37 percent, to 40,312 in early trade, while the NSE Nifty index grew by 58 points, or 0.49 percent, at 11,948

2) On Tuesday, The market had seemed to take a breather and this happens whenever we see profit-taking in auto stocks. The Sensex fell 0.13 percent to end at 40,248.23 and the NSE Nifty 50 fell 0.2 percent to close at 11,917.20.

3) On Wednesday, the equity benchmark indices ended the day on a positive note. The banking stock is leading the way for an all-time high for the benchmark indices. The Sensex ended with gains of 221.55 points at 40469.78 while Nifty closed 43.80 points higher at 11961.00.

4) On Thursday, It was a strong F&O weekly expiry for the benchmark indices. The Sensex ended 215.02 points higher or 0.53 percent at 40,684.80, and the Nifty closed at 12,016.10.

5) On Friday, Indian equity benchmarks opened lower.

Broader Index & Global Market:

-Globally, the market was trading sideline however the positive developments in US-China trade deals brought the cheer in wall street.

The broader pack was trading on a positive note this week. The Mid & Small- cap witnessed a hefty buying amid the strong Q2 results. The momentum is likely to remain so in the coming days also.

Movers & Shakers

Shares of VARUN BEVERAGES surged more than 15 percent after the CLSA maintained buy rating with a price target of Rs 860 per share.

Shares of BAJAJ ELECTRICAL dropped more than 15 percent in a week after the company posts net loss of Rs 32.5 crore in the September quarter, revenue declines 31%.

Key Market Drivers

  • India opted out of RCEP.
  • PMC Bank: RBI increases the deposit withdrawal limit.
  • SEBI on new FPI regulations
  • Sebi issues circular on Aadhaar e-KYC for investors
  • Government approves Rs 25,000 crore fund.
  • FM to review the state of the economy at FSDC meets on Nov 7.
  • Bank of England to keep rates steady in the pre-election meeting.

Event Watch

International:

  • US crude inventory
  • US Import Price Index MoM

Domestic:

  • Crude price
  • INR Price
  • Q2 Results

Stocks To Watch

IPCALAB & BIOCON on Upside while, BAJAJELECTRICAL & UPL on Downside.