Stock Market Weekly Outlook- Gaurav Bora, Market Expert

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Markets on record highs, market may continue pre-budget rally.

Markets on record highs, market may continue pre-budget rally; Nifty (+2.4%), Sensex (+2.7%). Mid Cap & Small Cap index gained +0.80% and +1.5% respectively in this week. FIIs bought equities worth 4892 crore while DIIs sold equities worth 3751 crore, FIIs inflow lifted market sentiments. IT, Metals and Private Bank sectors driven market in last week. Many changes will be done in Nifty and Sensex in coming week, Titan, UltraTech Cement, Nestle India will be included in BSE Sensex with effect from December 23 and Tata Motors, Tata Motors DVR, Vedanta and Yes Bank will be removed from the index. Prince Pipes IPO closed in last week and issue got subscribed 2.21 times, we are not recommending this issue as we may see stock price below IPO price in secondary market.

No GST rate hike in GST council meeting lifted market sentiments and hope of more measures in the forthcoming Budget 2020 will continue momentum in coming week too. Indian markets are expected to continue to take note of consistent improvement in global sentiment due to positive developments in the US-China trade dispute and an increase in US consumer spending. The US stocks market on last Friday registered record closing highs this will boost Indian market sentiments. The market momentum may also get supported by the Brexit deal as it cleared the first step as it got approved by UK Prime Minister Boris Johnson in parliament on December 20 and Britain may depart from the European Union before the deadline of January 31, 2020 set by Britain PM. Brent crude jumped to $66.14/bbl from $65.22/bbl week-on-week and Brent Crude was jumped 10 % within 15 days of December after easing US China trade tensions. Indian rupee depreciated to 71.12 against USD from 70.81 a dollar on weekly basis.

Monday market may open on flat note as SGX Nifty at 12,278 (-14). The December series derivatives will get expired on Thursday December 26, overall sentiment may remain positive and may help the index to move around 12,350-12,400 levels. On upper side 12,350 will act as a stiff resistance for the market and 12,200 will act as crucial support. India VIX fell by 7% closed to 12.32 levels from 13.30 in previous week, which is positive sign and it will attract traders for fresh buying position. On the options front, maximum Call open interest (OI) is at 12,300 followed by 12,500 strike while maximum Put OI is at 12,200 followed by 12,000 strike. Current option data shows a broad trading range between 12,200 to 12,500 levels on the Nifty. On lower side Nifty’s crucial support at 12,200 levels, on the higher side immediate hurdle is at 12,300.

Data shows we may see upside above 12,300 in coming week. So traders are advised to take fresh buy position above 12,300 we may see nifty rally to 12,500.

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:

Yes Bank (+10.18%)

Tata Steel (+7.61%)

TCS (+7.32%)

Bharti Airtel (+6.08%)

HCL Tech (+4.92%)

Top Losers of the Week:

Grasim (-4.69%)

Vedanta (-3.45%)

Hindustan Unilever (-3.15%)

Indiabulls Housing (-3.14%)

Sun Pharma (-2.04%)