Wonderful Wednesday! Sensex, Nifty hit fresh record highs

A string day for Dalal Street as bulls pushed benchmark indices to fresh record highs for the second day in a row. The S&P BSE Sensex rallied over 200 points to hit a fresh record high of 41,614, while the Nifty50 rose more than 50 points to hit a life high of 12,237.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 206 points to 41,558 while the Nifty50 rallied by about 56 points to close at 12,221. Both Sensex, and Nifty hit fresh record closing highs.

Sectorally, action was seen in metals, healthcare, realty and consumer discretionary while profit-taking was seen in the public sector, telecom and oil & gas index.

The broader market underperformed as the S&P BSE Mid-cap index was down 0.19 percent while the Small-cap index fell 0.05 percent.

Not just Sensex, and Nifty50 but about 60 stocks on the BSE also rose to their fresh 52-week highs that include names like Bajaj Finserv, Dixon Technologies, HDFC, HDFC Bank, JK Cement, Mahanagar Gas, and Navin Fluorine, etc. among others.

Positive global cues, expectations of further reforms from the government lifted sentiment. Metals and IT stocks got a booster on ease in trade tension as well as signs of recovery in global growth. The market would react to the outcome of the GST council meeting on Thursday.

“Market hit record highs on expectations of measures from the center to support on-going economic weakness. Metals & IT stocks traded higher on hopes that easing trade tensions could ensure global growth and increase the order intakes,” 12Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“With Budget 2020 around the corner, the government is planning to steer the ship by bringing measures to boost consumption. Investors are keenly watching the on-going GST council meet, a rate hike is looking unlikely due to a surge in inflation while the focus will be more on revenue realisation,” he said.

Top Nifty gainers –JSW Steel, Sun Pharma, and M&M

Top Nifty losers – Grasim Industries, GAIL India, and Tata Motors

Stocks & Sectors:

Sectorally, the S&P BSE Metal index rose 0.84 percent, followed by the S&P BSE Healthcare index which rose 0.69 percent, and the S&P BSE Realty index was up 0.65 percent.

The S&P BSE Public Sector index fell 0.82 percent, followed by the Power index which fell 0.71 percent, and the S&P BSE Telecom index was down 0.49 percent.

Volume spike of 100-400% was seen in stocks like M&M, Cadila Healthcare, UBL, JSW Steel, Pidilite Industries, and Tata Elxsi.

Long Buildup – JSW Steel, Tata Elxsi, Hero MotoCorp

Short Buildup – Sun Tv, Tata Motors, Voltas, Cadila Healthcare

Stocks in news:

Sunteck Realty: Sunteck Realty jumped over 2 percent on December 18 after the company said that it received an overwhelming response at its recent launch of the 4th Avenue at Sunteck City in Goregaon (West).

PC Jeweller: PC Jeweller dipped 5 percent on December 18 after the Securities and Exchange Board of India (SEBI) fined Shivani Gupta, Sachin Gupta, Amit Garg and Quick Developers, the promoters of PC Jeweller, a total of Rs 8 crore for alleged unlawful gains by violating insider trading norms.

Tata group stocks fall: Tata group stocks fell after NCLAT restored Cyrus Mistry as the Executive Chairman of the Tata Group. NCLAT upheld that the appointment of N Chandrasekaran was illegal. Tata Motors and Tata Motors DVR ended over 3 percent in the red.

Jaypee Infra: Jaypee Infra jumped close to 10 percent on December 18 after CoC nod for NBCC bid to acquire the company under the insolvency process.

Bank of Baroda: Shares of Bank of Baroda fell over 3 percent on December 18 after reports emerged that the lender under-reported bad loans for the financial year 2019.

Technical View:

Nifty50 formed a bullish candle on the daily charts for 2nd day

There are no apparent sell signals on the charts, hence, investors should stay on the long side

If Nifty trades below 12163 levels for atleast 30 minutes, profit taking could be seen

If it manages to get past and sustain above 12237 levels then the index shall expand its upmove into the zone of 12290 – 350 levels.

Traders are advised to remain neutral on long side bets where as intraday traders can consider shorting if the index trades below 12163 levels and look for a target of 12090, suggest experts.

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