No Monday blues on D-Street! Sensex ends at fresh closing peak, Nifty above 12,050

Sensex hit a fresh record high of 40,931.71 on November 25, surpassing its previous record high of 40,816 while Nifty50 topped 12,050 levels on a closing basis.

Sensex rallied by more than 500 points while Nifty saw an uptick of nearly 160 points. The Nifty50 is now just 30 points away from all-time high while Nifty Bank is 230 points away from record highs.

Let’s look at the final tally on D-Street – Sensex rose 530 points to end at a fresh record closing high of 40,889 while Nifty closed 159 points higher at 12,073.

Sectorally, the action was seen in the telecom, metal, realty and auto indices. In the broader markets, the Mid-cap index rose 1.1 percent while the Small-cap index rose 0.81 percent higher.

Positive global cues, MSCI rejig, consistent buying by foreign investors as well as some bit of short coverings ahead of F&O expiry helped Sensex to touch fresh record highs.

“The prolonged trade war between the US & China was weighing heavily on Indian indices. Positive Statements made by both officials last week indicating that a trade pact is likely by the end of December 2019 are being welcomed. Moreover, FIIs are preferring Emerging Markets such as India as the recent easy monetary stance of Fed & ECB has improved liquidity in world markets. Whereas, India’s economy is seeing a demand revival especially in the sectors of Auto and Consumer Durables,” said Sandeep Nayak, ED & CEO of Centrum Broking.

Nayak further added that the government providing relief to telecom companies over spectrum-related dues and impending price increase planned by players have revived interest in the telecom sector.

Hopes of a trade deal between the US & China fuelled a rally in metal stocks. Telecom stocks rallied led by Bharti Airtel, following reports that the company, along with Vodafone Idea, had filed applications in the Supreme Court for a review of its judgment on Adjusted Gross Revenue (AGR).

Consistent buying by foreign institutional investors which have poured in more than Rs 17,000 crore in Indian equity markets so far in November helped the sentiment.

Top Nifty gainers include names like Bharti Infratel, Bharti Airtel, Hindalco, and Tata Steel.

Top Nifty losers include names like YES Bank, ONGC, and ZEE Entertainment.

Sectors and stocks:

Sectorally, the S&P BSE Telecom index rose 6.7 percent, followed by the S&P BSE Metal index which rose 3.3 percent, and the S&P BSE realty index gained 2.04 percent.

Volume spike of 200-300 percent was seen in stocks like Hero Moto, Adani Enterprises, Hindalco, Page Industries, and UltraTech Cements.

Long Buildup: Hindalco, Bharat Forge, Eicher Motors, Hero MotoCorp, HDFC

Short Buildup: YES Bank, Bharat Electronics.

Stocks locked in the upper circuit include names like CG Power, ITD Cementation, Magma Fincorp, and Hathway Cable & Datacom Ltd.

Stocks locked in the lower circuit include names like Reliance Infra, and Coffee Day.

Stocks in news:

ITD Cementation: ITD Cementation share price closed almost 5 percent higher on November 25 after the company bagged orders valued over Rs 3,400 crore from various government entities.

Kridhan Infra: Kridhan Infra share price ended nearly 5 percent higher on November 25 after the Mumbai-based company received an order for liquidation of its Singapore subsidiary.

Reliance Communications: Reliance Communications share price gained over 4 percent on November 25 following reports that Bharti Airtel, Reliance Industries and three others may bid for the assets of the debt-ridden company.

Edelweiss Financial: Shares of Edelweiss Financial Services gained 4 percent on November 25 after its subsidiary successfully raised Rs 500 crore through the NCD issue.

Inox Wind: The share price of Inox Wind zoomed over 14 percent on November 25 after the company got an extension by state-run SECI for the scheduled commissioning of 550 MW inter-state transmission system (ISTS) connected wind power projects in Gujarat.

Technical Views:

The Nifty50 formed a strong bullish candle on the daily charts, negating the impact of a Bearish Belt Hold pattern formed on Friday

The index closed above 5-Days EMA placed at 11,982 which acted as a stiff resistance in the previous session

The deck is now cleared for the index to hit fresh record highs soon

Three levels to track on Tuesday – 11,919, 12,084, 12103-12200

Traders can create fresh long positions with a stop below 11919 levels on a closing basis and look for a bigger target of 12300 levels, suggest experts.Get access to India’s fastest growing financial subscriptions service Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the website or mobile app.