Historical week on D-Street, but tread with caution

The week starting December 16 was a historic one as benchmark indices rose to fresh record highs on 4 out of 5 trading days. The S&P BSE Sensex rose 1.64 percent while the Nifty50 gained 1.53 percent to post its best week since November.

The S&P BSE Sensex rallied over 100 points to hit a record high of 41,809 while the Nifty50 rose by more than 30 points to hit a lifetime high of 12,293 on Friday.

However, both Sensex and Nifty pared gains towards the close of the session to end flat but with a positive bias.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 7 points to close at 41,681 while the Nifty50 ended 12 points higher to close at 12,271 on Friday.

Sectorally, action was seen in consumer durable, public sector, telecom, and power index while profit-taking was seen in healthcare, auto, energy and capital goods space. NiftyBank also hit a record high of 32,443. It closed with gains of 143 points to 32,384.

Broader market closed mixed as the S&P BSE Midcap index rose 0.15 percent while the S&P BSE Small-cap index closed with marginal losses, down 0.03 percent.

On a day when Sensex and Nifty hit fresh record highs, there are only over 70 companies that hit a fresh 52-week high on Friday. Those included SRF, Crisil, RIL, ICICI Lombard, Mahanagar Gas, ICICI Bank and DFM Foods.

On the other hand, there are 141 stocks which hit a fresh 52-week low that include names like TCNS Clothing, Majesco, JK Agri, Sagar Cement, GNFC, and Dishman Carbogen.

Experts are of the view the momentum seems to be fading and the probability of the markets going into consolidation or profit booking is high in the coming week.

“Market maintained a positive bias amid a narrow range, RBI’s open market operation to bridge the liquidity gap provided impetus to investors. Bond yield slid to 6.57% while PSU banks gained in expectation of higher treasury gains,” Vinod Nair, Head of Research at Geojit Financial Services.

“A short-term consolidation cannot be ruled out as investors may slide to a holiday mood, last two weeks we had a solid Santa clause rally,” he said.

Nifty gainers: SBI, Tata Steel, Titan Company, and Nestle India

Nifty losers: ITC, Tata Motors, Kotak Bank, and Vedanta

Stocks & Sectors:

Sectorally, the S&P BSE Consumer Durable index rose 1.2 percent, followed by the S&P BSE Public Sector which gained 1.02 percent, and the S&P BSE Telecom index gained 0.92 percent.

The S&P BSE Healthcare index was down 0.42 percent, followed by the S&P BSE Auto index which was down 0.37 percent, and the S&P BSE Energy index fell 0.24 percent.

Volume Spike of 300-600% was seen in stocks like Colgate Palmolive, Titan Company, Britannia Industries, OIL, Nestle India, and Dish TV.

Long Buildup – IGL, Nestle India, Dish TV, Tata Steel, Britannia Industries

Short Buildup – Amararaja Batteries, Bharat Forge, Ramco Cement, HPCL

Stocks in the news:

Titan Company share prices climbed more than 3 percent on BSE ahead of analyst and institutional investor meeting on December 20.

Dishman Carbogen share price fell more than 8 percent to a 52-week low of Rs 102.50 on BSE, a day after the income-tax department “searched and surveyed” company’s properties.

CRISIL touched a 52-week high of Rs 1,811.95 after the company board approved 100 percent acquisition of Greenwich Associates LLC and its subsidiaries.

Lemon Tree Hotels share price rose 3.5 percent after it opened its first overseas hotel in Dubai and it will be managed by Carnation Hotels, a subsidiary, and the hotel management arm of the company.

Bajaj Consumer rose nearly 4 percent after Jaideep Nandi was appointed as the CEO.

Kolte Patil jumped nearly 5% as Pabrai Investment Fund increases stake

Technical View:

The Nifty50 rose but pared gains towards the close of the session to form a ‘Doji’ kind of pattern on charts

A bullish candle was seen on the weekly charts

Multiple technical parameters on lower time frame charts are exhibiting signs of exhaustion in momentum warranting either a sideways consolidation or correction going ahead.

The upsides from current levels seem to be limited as Nifty is heading towards critical resistance placed around 12350 levels on long term charts.

For the time being, experts advise short term traders to avoid long side bets and shorting can be considered on a close below 12199 levels for initial targets of 12100.

Three levels: 12,200-12,252, 12,293, 12,350Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol 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 Moneycontrol website or mobile app.