MARKET WRAP: Sensex up 137 pts, Nifty ends at 10,967 led by PSU banks, FMCG

The Nifty PSU Bank index ended 2.9 per cent higher led by Vijaya Bank and Bank of India after TV reports suggested that Allahabad Bank, Bank of India and Bank of Maharashtra may come out of PCA soon

9:17 AM

Market at open

 

At 9:17 AM, the S&P BSE Sensex was trading at 36,432, up 85 points, while the broader Nifty50 was ruling at 10,939, up 30 points.

9:15 AM

BofaML on OMO, bond markets and rate cut

We welcome RBI Governor Das's decision to announce an open market operations (OMO) calendar of Rs500bn/US$7bn/month in the March quarter and step up OMO to Rs500bn from Rs400bn in December. This is in line with our standing call of Rs1.5trn of RBI OMO in the March quarter. Within days of assuming office, Gov Das has swiftly defused the liquidity crunch arising out of delayed RBI OMO despite FX intervention. This should end lending rate hikes that were hurting growth as base effects reverse. Second, large-scale RBI OMO will expectedly push the G-sec market into excess demand. Finally, we grow more confident of our call that the RBI MPC will cut 25bp in February/April with Gov Das seeing a "benign inflation outlook". We track at December inflation at 2.4% atop November's 2.3%. On balance, this should be positive for rate sensitives: bonds, financials

9:13 AM

COMMENT

A very cautious optimism remains among Asian companies in the fourth quarter as they wait to see whether there will be any breakthrough in a trade dispute between the United States and China, a Thomson Reuters/INSEAD survey showed. Representing the six-month outlook of 84 firms, the Thomson Reuters/INSEAD Asian Business Sentiment Index edged up to 63 in the October-December quarter, slightly above a near three-year low of 58 seen in the previous period.

 

Anything above 50 indicates a positive outlook. But the latest result still marks one of the lowest readings since a rout in Chinese stocks in mid-2015 rattled world markets.

"This confirms the reading of the previous quarter: there is more uncertainty, there are increasing concerns about growth," said Antonio Fatas, a Singapore-based economics professor at global business school INSEAD.

9:08 AM

BOND ALERT: 10-year Govt Bond Yield opens at 7.28% vs its previous close of 7.35%

9:06 AM

NEWS ALERT Rupee breaches 70 per dollar mark to hit at 69.86 in early deals

9:02 AM

Market at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,448.40	+101.32	+0.28
S&P BSE SENSEX 50	11,456.75	+33.29	+0.29
S&P BSE SENSEX Next 50	32,760.65	+83.19	+0.25
S&P BSE 100	11,223.40	+31.99	+0.29
S&P BSE Bharat 22 Index	3,481.00	+17.04	+0.49

9:01 AM

Rupee opening

 

Rupee opened at 70.10/$ against its previous close of 70.45 a dollar

8:56 AM

Today's picks

 

UPL

 

Current price: Rs 743

Target price: Rs 730

 

Keep a stop at Rs 750 and go short. Add to the position between Rs 732 and Rs 730. Book profits at Rs 730.

 

Wipro

 

Current price: Rs 335

Target price: Rs 330

 

Keep a stop at Rs 338 and go short. Add to the position between Rs 331 and Rs 332. Book profits at Rs 330. Click here to read more

8:53 AM

Markets likely to open higher; Buy around 10920: Karvy Stock Broking
 

-- Nifty gapped down at open after taking cues from the global markets but managed to recover smartly to shut shop above the 10900 mark. Good buying was seen in heavyweight stocks which propelled the markets to recover from lower levels.
 

-- For the day, market participants will be cautious as they brace for on going fed meeting outcome.
 

-- As far as supports for the Nifty are concerned, immediate supports can be seen around 10860-10840 levels, cracking below which levels around the 10800-10750 zone will become more significant levels of support.
 

-- Whereas on the upside, if the index manages to surpass the immediate hurdle around 10940-10960 zone, then a swift round of buying can pull the markets towards 11050 as well.
 

-- On the other hand, the Banknifty has immediate support zone around 27100-27050 below which 26950-26970 will act as next consequential supports, going into today’s trade. While, resistances for the banking index are pegged around 27280-27350 respectively.

8:52 AM

NTPC, IDFC Bank, J Kumar Infra and YES Bank among top stocks to track today

 

The state-owned power giant Tuesday said it has restored 500 MW Unit-6 Feroze Gandhi Unchahar Thermal Power Station in Rae Bareli district, where an accident in November last year resulted in its breakdown. That apart, the company is also planning 120 MW floating solar power plant on the outskirts of Ramagundam, Telangana. Read more

8:45 AM

Nifty heading for 11,300 Target; Support shifted upward to 10,750: HDFC Securities

 

Nifty gained for the 6th session on a trot, to close at 10,908, the highest level since 1st October 2018. Nifty has broken out from the crucial downward sloping trend line resistance of 10,840. Next Target for Nifty is now seen at 11,300. Support for the Nifty is now shifted upward to 10,750. READ MORE

8:41 AM

CD Equisearch on Atul Ltd

The stock currently trades at 24.4x FY19e EPS of Rs 137.93 and 21x FY20e EPS of Rs 160.33. Earnings would barely impede (average earnings growth of 31.2% though on small base) on higher margins and robust volumes, thus enlivening both return on equity and asset turnover ratios. In light of current uptick in earnings we revise upwards our current year earnings by 19.4%.

Yet effect of tweaks in product processes through debottlenecking and widening of product portfolio like high performance pigments and fragrance intermediates would barely have far reaching impact in short term. On balance we advise buying the stock with revised target of Rs 4169(previous target: Rs 3234) based on 26x FY20e earnings

8:40 AM

MARKET COMMENT  Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas

Key benchmark indices closed positive, erasing sharp intraday losses suffered in early trade. Nifty reclaimed 10900 level up by 20 points. Domestic sentiments got relief with Prime Minister Narendra Modi’s statement that his government wants to ensure that 99 percent things attract sub-18 per cent GST slab. Investor to closely track key Central Bank meetings scheduled this week. FOMC meet on 19th Dec followed by Bank of Japan Monetary policy on 20th Dec.

Amid uncertainty over global events & political stability in domestic market, we should wait for clear indication of revival in corporate earnings. However investor should use this volatility to accumulate stocks for long term. We prefer stocks from Consumer staples segment as macro economic indicator are showing signs of improvement and government’s focus on rural schemes to boost rural consumption. We like Britannia and Dabur India.

8:39 AM

BofA Fund Manager Survey

But 53% of FMS investors expect global growth to weaken over the next 12 months, the worst outlook on the global economy since Oct'08. Just 9% of FMS investors expect a global economic recession in 2019, down from 11% last month.

8:38 AM

Top trading ideas by Prabhudas Lilladher for today:

BUY SUN PHARMA

CMP: Rs 433.45

TARGET: Rs 485

STOP LOSS: Rs 395

 

The stock has witnessed a great erosion from the peak of 605 levels and has currently bottomed out at 397 levels and indicated a bounce back. The chart looks very attractive and the risk-reward ratio is too good to make a fresh entry. The RSI has shown a trend reversal from the oversold zone and has signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 485 keeping the stop loss of 395. READ MORE