Market to remain in consolidation in coming week.
Market to remain in consolidation in coming week; Nifty (+0.8%), Sensex (+0.7%). Mid Cap & Small Cap index gained +0.70% and +0.4% respectively in this week. FIIs bought equities worth 4710 crore while DIIs bought equities worth 330 crore. Tug of war between bulls and bears continued for the third consecutive week as the indices closed flat, though the Sensex hit a historic high in the week but Nifty couldn’t sustained above 12,000. As there are no major events on the global and domestic front, it could be another consolidation week for the market but November derivative expiry may increase volatility. Catholic Syrian Bank IPO opened on 22nd Nov and ipo will close on 26th Nov and on first day ipo fully subscribed backed by strong retail support with 5.6 times subscription, Our view for the IPO is subscribe as we may see nearly 50% listing gain at the opening.
The key macro data point to watch out for in the coming week would be Q2 GDP figures which scheduled to be released on November 29, GDP figures could be below 5% against 5% in Q2FY20 but there could be recovery in second half of this year especially after government measures. The uncertainty over whether the world’s largest economies United States and China will be able to reach a partial trade deal continued, US President Donald Trump has been saying both countries are close to sign the partial deal but that has not happened yet so recent developments over US China trade deal will be closely watched. Crude oil prices closed to USD 63.39/bbl, oil prices remained favorable for India as it has been in the range of $60-65 a barrel for last two months. Indian rupee depreciated by 5 paise to close at 71.79 against USD on Friday.
Monday market may open on flat note as SGX Nifty at 11,920 (+1). Nifty should sustained above psychological 12,000 levels, which has been acting as crucial resistance zone during the week but if index holds 12,000 levels then index may head to record high 12,103 levels. On upper side close above 12,000 levels 12,103 will act as immediate resistance for the market but above record high index may witness break out till 12,300-12,450. India VIX fell by 1% closed to 14.87 levels from 15.03 levels, lower VIX suggests declined in volatility and we may see short covering in expiry week. On the options front, maximum Call open interest (OI) is at 12,000 followed by 11,900 strike while maximum Put OI is at 11,900 followed by 11,800 strike. Current option data shows a broad trading range between 11,800 to 12,200 levels on the Nifty. On lower side Nifty’s crucial support at 11,842 levels, on the higher side immediate hurdle is at 12,025.
Data shows we may see upside above 12,000 in coming week. So traders are advised to take fresh buy position above 12,000 we may see nifty rally to 12,200.
FOR INVESTORS THIS IS BUYING OPPORTUNITY ACCOUMLATE QUALITY STOCKS ON EVERY DIP, AS THIS VOLATILITY IS BECAUSE OF MAJOR EVENT BUT FUNDAMENTALS ARE VERY MUCH INTACT. VOLATILITY IS FRIEND OF INVESTOR.
Top Gainers of the Week:
Zee Entertainment (+24.38%)
Indiabulls Housing (+12.86%)
Sun Pharma (+8.93%)
Bharti Airtel (+7.02%)
Eicher Motors (+6.70%)
Top Losers of the Week:
Yes Bank (-5.68%)
Asian Paints (-4.43%)