Bulls charge D-St! Ujjivan Small Finance up 50% on listing day

Tracking positive global cues, the bulls remained in control of D-Street on December 12 pushing the Sensex higher by more than 150 points while the Nifty flirted with 12,000.

Let’s look at the final tally on D-Street: the Sensex rose 169 points to 40,581, while the Nifty closed 61 points higher at 11,971 after touching an intraday high of 12,005.

Sectorally, the action was seen in metals, public sector, auto, banks, and capital goods space, while profit taking was visible in IT and telecom stocks.

IT remained under pressure largely on account of the Indian rupee touching one-month high against the US dollar.

The BSE Midcap index was up 0.69 percent and the BSE Smallcap index rose 0.59 percent.

Investors waited for infrastructure output and inflation data that was to be released after the market hours.

“US FED’s dovish stance on future rate trajectory and strengthening rupee brings cheer to investors. Global sentiment is likely to turn positive in expectation of delay in US tariff deadline, while expecting more positive developments from US-China trade talks,” Vinod Nair, Head of Research, Geojit Financial Services, told Moneycontrol.

“Metals & banks outperformed, while IT index slid due to strong rupee and signs of change in risk appetite. On the other hand, November CPI inflation is likely to rise to 5.3%, while October IIP may slide to -5% which may have some impact on the direction.”

Top Nifty gainers – Tata Steel, Vedanta, YES Bank, and Tata Motors

Top Nifty losers – TCS, HCL Tech, ONGC, and Infosys

Stocks and sectors

Sectorally, the action was seen in the BSE Metal index that rose 2.4 percent followed by the Public Sector index that was up 1.53 percent, the BSE auto index closed with gains of 1.3 percent and the Bankex ended the day 1.25 percent higher.

Volume spike of 100-300% was seen in Tata Motors, Tata Global Beverages, SRF, Chola Finance and Glenmark

Long Buildup – Power Grid, HDFC, Tata Motors, and Bajaj Finance

Short Buildup – IGL, Ujjivan, ONGC, and Jindal Steel

Stocks in news

Hikal rose more than 14 percent after the company received an establishment inspection report for USFDA inspection of the pharmaceutical facility at Panoli, Gujarat with zero 483 observations.

Ujjivan Small Finance Bank had a stellar market debut, adding 51 percent to close at Rs 55.90 against the issue price of Rs 37 per share.

Godrej Properties share price rallied over 3 percent after the Mumbai-based real estate company added four projects to its portfolio.

Cipla share price was up more than 2 percent after the pharmaceutical major announced submission of application for intravenous tramadol with USFDA.

Shares of Bharat Petroleum Corporation gained nearly 2 percent after CNBC-TV18 reported that roadshows would likely be held in London, the US and Dubai to drum up support for strategic stake sale.

Technical view

The Nifty formed a small bullish candle on daily charts.

It took support near its 5-day EMA placed at 11,942.

Experts feel that as long as the Nifty sustains above 11,934–11,923, one can remain positively biased and look for initial target of 12,031-12,081.

A close below 11,923 would be considered as an initial sign of weakness.

For the time, traders should make use of dips to create fresh longs, with a stop below 11,920 on a closing basis and look for a target of 12,080, said a Reuters report.

Three levels: 11,934, 12,005, 12,081

Max Call OI: 12,000, 12,200

Max Put OI: 11,500, 12,000.

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