Late recovery helps Sensex settle 172 pts higher; Yes Bank share price down 15%

Late recovery on D-Street in the second half of the trading session helped benchmark indices close above crucial support levels on Wednesday. The S&P BSE Sensex rose nearly 200 points while the Nifty50 reclaimed 11,900 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 172 points to 40,412 while the Nifty50 closed with gains of 53 points to 11,910 on Wednesday.

Sectorally, the action was seen in Oil & Gas, IT, as well as, realty space while profit-taking was witnessed in capital goods, telecom, and metal stocks.

Broader market underperformed benchmark indices. The S&P BSE Midcap index was up 0.52 percent while the S&P BSE Smallcap index closed flat.

What to watch out for on Thursday?

After a massive 166 times subscription to its initial public offering (IPO), all eyes are now on the listing of Ujjivan Small Finance Bank scheduled on December 12.

In terms of macro data, investors would watch out for Industrial production data for October, as well as, inflation data for the month of November.

On the global front, markets would react to the US Fed Reserve policy outcome.

“After a subdued trade during most part of the day, the market witnessed a sharp turnaround due to short covering in index heavyweights,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“Upcoming macro indicators like CPI inflation & IIP data are unlikely to paint a rosy picture which may reduce upside potential in the near term. On the global front, FOMC meeting, UK election and US tariff deadline remain key events,” he said.

Top Nifty gainers: NTPC, ZEE Entertainment, and GAIL India Ltd

Top Nifty losers: Hero MotoCorp, Vedanta, and Yes Bank

Stocks & Sectors:

Sectorally, the BSE Oil & Gas index lead the pack rising 1.1 percent, followed by the IT which gained nearly 1 percent, and the Realty index which was up 0.9 percent.

On the losing front, profit-taking was seen in the S&P BSE Capital Goods index which was down 0.8 percent, followed by the S&P BSE Telecom index which was down 0.81 percent, and the S&P BSE Metal index fell 0.24 percent.

Volume Spike of 100-300 percent was seen in Bajaj Finserv, Bosch, Cadila Healthcare, and Yes Bank.

Short Buildup – Yes Bank, Castrol India, Marico, Havells India, Marico,

Stocks in news:

Yes Bank share price fell more than 15 percent after the bank’s board said it is considering Citax Holdings’ $ 500 million offer. As per the company’s release, Yes Bank is “favourably” considering the offer of Citax Holdings and Citax Investment Group and the final decision regarding allotment will be taken in the next board meeting.

Reliance Capital fell nearly 5 percent after a delay in payment on interest / principal obligations due on December 9.

Dish TV jumped over 2 percent after media reports indicated that direct-to-home (DTH) operations of the company and Bharti Airtel may merge.

Adani Transmission gained over 1 percent, hitting a new 52-week high of Rs 350.05 per share after the company decided to sell 25.1 percent stake in Adani Electricity Mumbai to Qatar Investment Authority for $ 450 million.

Shares of Vodafone Idea ended 3 percent higher amid reports that the company was planning to raise $ 2.5 billion by sale of assets.

Technical View:

Nifty formed a bullish candle on the daily charts.

It bounced back after breaching Tuesday’s intraday low of 11,844 which is a positive sign.

But, it is too early to conclude that we have made a bottom.

If the index sustains above 11,832 levels, then the bullish momentum will strengthen and could open room for the index to touch 12,083 levels.

A breach of 11,832 could take the index towards 11,750 levels. Positional traders can make use of any dip in next session between 11,890-11,870 levels to create fresh long positions with a stop below 11,832 and look for a target of 12,000, suggest experts.

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