Market Live

Thank you readers! Here are the key highlights from today's session

- Sensex & Nifty End The Week On A Quiet Note, Close 0.1% Lower

- Midcap Index Surges 486 Points, Sees Best 1-day Gain In Almost 38 Weeks

- Nifty Bank Ends 20 Points Higher; HDFC Bank Pulls Index Higher, Axis Bank Drags

- Nestle, Shree Cem & Power Grid Fall Sharply In Last Hour Of Trade Down 2% Each

- Gas Cos Surge After Regulator Notifies Unified Tariff Rules, IGL Up 11%

- All Sectoral Indices Except Nifty IT End In The Green Today

- Market Breadth Remains In Favour Advances, Ratio At 2:1

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- Market Records Highest Monthly Gains In FY20 So Far Supported By Highest-ever FII Flows

- Sensex & Nifty Rise 11.5% In Nov, Nifty Bank Gains 25% & Midcap Index Up 15%

- Bajaj Twins & IndusInd Bank Top Gainers This Mth While UPL & Reliance Top Losers

- Only 4 Nifty Stocks End In The Red For Nov – UPL, RIL, HCL Tech & DRL

Closing Bell: Sensex, Nifty end lower after a choppy session; broader markets outperform

Indian indices ended lower after a choppy session on Friday dragged by losses in bank and IT stocks and heavyweight RIL. The Sensex ended 110 points lower at 44,149 while the Nifty lost 18 points to settle at 12,969. However, broader markets outperforemd benchmarks with the Nifty Midcap and Nifty Smallcap up 2.6 percent and 3.2 percent, respectively. On the Nifty50 index, Tata Motors, Asian Paints, Hero Moto, Divi's Labs and Bajaj Auto were the top gainers while Nestle, Powergrid, JSW Steel, Shree Cement, and HCL Tech led the losses.

Market Watch: Dipan Mehta of Elixir Equities

City Gas Distribution companies

 “We would still like to go with the City Gas Distribution companies and since they have come into play last decade or so these have traded significant value and also being of great service to society per se in terms of reducing pollution as well. I am very positive on City Gas Distribution companies and to play the entire gasification of the economy theme I think these are the best plays.” 

 
Auto

“I would like to be a bit cautious on autos at this point of time. Most of these auto shares have run-up significantly right from March and no doubt the pent-up demand help these companies but the way two-wheeler sales are flattening out I am bit skeptical that maybe even the passenger vehicle say maybe 2-3 months down the line may start to stagnate.”

EVENTS NEXT WEEK 

> Market holiday on Monday : Guru Nanak Jayanti 

> Tue - Dec 1

 - Auto companies to report Nov sales volume nos from Tuesday onwards 

 - Nov PMI Details to be out

> Friday - Dec 4 

RBI Interest Rate Decision (RBI Policy)

Market Watch: Hemen Kapadia of KRChoksey Securities

"I have a buy call on Sun Pharma Advanced Research Company (SPARC), stock looks good, we have had crossover buy coming in by the mechanical indicators over coming of the 55 day moving average. Buy it around Rs 180 with a stop loss of Rs 173 and target of Rs 194. The second is a buy call on Sterlite Technologies, brilliant consolidation, looks good, volumes spiked today. So buy at Rs 160 with a stop loss of Rs 154 and a target of Rs 172. Lastly, a sell call on ACC at Rs 1,680 with a stop loss of Rs 1,715 and a target of Rs 1,640, negative divergence, crossover sales, on the verge of making a lower top lower bottom on the daily charts."

Loan Moratorium Case Live Updates: Supreme Court resumes hearing on petitions seeking interest waiver soon

Automobile wholesales in November likely to grow YoY for all segments (ex-M&HCV): Motilal Oswal

According to the Automobiles report from Motilal Oswal Financial Services, Wholesales in Nov’20 are expected to grow YoY for all segments (ex-M&HCV) due to sustaining demand, inventory refilling and normalizing supply-chain bottlenecks at the OEM level. Demand remains skewed towards semi-urban and rural markets for 2W/PVs. In Nov’20, wholesale volumes are estimated to grow at 19.6% for 2Ws on a low base, 12.6% for PVs due to sustaining demand and inventory refilling, and 6.5% for CVs on the back of LCV growth of 14%, but restricted by the around 5 percent decline in M&HCVs. Wholesale volumes for Tractors are expected to grow by 86.5% YoY on robust demand, the timing difference of Diwali in 2020 and a low base.

Market Watch: Jay Thakkar, VP and HOR at Marwadi Shares and Financials

“Manappuram Finance seems to have provided a very nice breakout from an ascending triangular pattern that has been formed on the daily charts. Currently it is trading around Rs 178. One can buy Manappuram Finance targeting around Rs 190 with a stop loss of Rs 169. The momentum indicators have clearly provided buy crossover for this short-term.”

“The second buy recommendation is on Bajaj Auto, auto space has done quite well especially the two-wheeler and Bajaj Auto has provided a breakout from a falling channel and it has now started to form higher tops and higher bottoms again with a clear buy crossover in its momentum indicators. On a lower side Rs 3,160 is now very crucial support for Bajaj Auto with that as a stop loss one can buy this. Target is around Rs 3,360-3,400.”

Shares of city gas distribution cos rally upto 19% after PNGRB simplifies gas pipeline tariff

Shares of city gas distribution companies rallied upto 19 percent in the early trade on Friday after the oil & gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) notified regulations for a unified gas transmission tariff structure. Among stocks, Gujarat Gas rallied over 19 percent to Rs 411.20 per share, Indraprastha Gas jumped more than 14 percent to Rs 514 apiece while Mahanagar Gas surged over 13 percent to Rs 1,057 and Adani Gas gained over 8 percent to Rs 344.60 on BSE. According to PNGRB, the tariffs will be applicable based on two-zone structure related to distance from the source of gas. PNGRB has simplified the country's gas pipeline tariff structure to make the fuel more affordable for distant users and to attract investment for building gas infrastructure.

Laurus Labs jumps 5% on acquiring 72.5% stake in Richcore Lifesciences; up 8% in 2 sessions

Laurus Labs share rose over 5 percent on Friday after the pharma firm announced that it has acquired a majority stake in Richcore Lifesciences. In a press filing, the company said, "Laurus Labs has executed Definitive Agreement for the acquisition of majority stake (72.55 percent) in Richcore Lifesciences Pvt Ltd (Richcore)." Richcore is being valued at Rs 340 crore and the cost of acquisition will be Rs 246.7 crore and will be funded through internal accruals, it added. Laurus will be acquiring the existing shareholding in Richcore of both Eight Roads Ventures and VenturEast. The stock rose as much as 5.6 percent to Rs 308.90 on BSE. In just 2 sessions, the stock jumped over 8 percent.

Market Watch: Pritesh Mehta of Yes Securities

 “In midcap IT space is looking interesting, one which is looking interesting on charts is HCL Technologies. If you talk about the rally in IT space from April to September it had a strong run-up. From the relative strength perspective HCL Tech was one of the big leader within the IT space and after few weeks of decline it came back it tells me target of Rs 920 is on the cards.”

“Second recommendation is Dr. Reddy’s Laboratories, pharma Index was one of the major underperformer since month of September. Now the way the things are panning out pharma could do well. From relative strength perspective Dr. Reddy looks interesting so buy for a target of Rs 5,200.”

NTPC share price gains after CLSA maintains buy rating

NTPC share price was up 2 percent intraday on November 27 after CLSA maintained buy call on the stock. The global research firm has retained buy on the stock with a target of Rs 140 per share. The company has started leading the RE space, winning 44 percent of 1.1 GW in tenders. The win should add 9 percent to the company's RE portfolio and could earn 11.4 percent equity IRR. This should address its growth and energy mix concerns CLSA believes that the win should improve visibility of the company's beating its 30 percent non-fossil target. It has maintained buy call on its improving ESG, deep-value multiples and high yield.

Technical View | The resistance level for the Nifty is at 13,050 and if we can cross that, we could head to 13,200 by next week. Strong support lies at 12,800 and thereafter at 12,500. It is only post the breaking of 12,500 that we would consider a short term correction. Until then, the trend remains bullish with a strong upside momentum, Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.

Kalyan Jewellers likely to launch IPO in Dec: Key things to know

Market Watch: Mehraboon J Irani, MD & CEO, Gini Gems Consultants

Tata Steel

“For Tata Steel,  even from the present level after the sharp run up which we have seen over the last 10-15 days and including yesterday also I will not be surprised if the stock gives at least another 10-15 percent more upside. Now at the present levels whether the short -term traders or investors should be buying is a difficult call. But if you ask me maybe over the next 6-9 months’ time, I will not be surprised if you see that returns coming over the next 6-9 months another 10-15 percent from here.”   

FMCG

“So while the valuations here and there have become expensive, a correction if any could be again used by investors as a buying opportunity.”

Opening bell: Sensex opens on a flat note, Nifty below 13,000; IT stocks fall 

Indian indices opened flat on Friday tracking muted trends in Asian peers. The sentiment was weighed on renewed doubts about a highly-anticipated coronavirus vaccine. At 9:17 am, the Sensex was down 20 points at 44,229 while the Nifty was up 1 points at 12,988. Losses in IT, banking stocks and heavyweight RIL dragged the indices. Broader markets outperformed benchmarks with the Nifty Midcap up 0.7 percent and Nifty Smallcap up 0.4 percent. All sectors, expect Nifty IT, were also positive for the day. The Nifty Auto rose over 1 percent while Nifty Pharma added 0.5 percent. Bank and fin servides indices were also in the green but flat. On the Nifty50 index, NTPC, GAIL, Tata Motors, Britannia and Asian Paints were the top gainers while Powergrid, Hindalco, TCS, RIL and Infosys led the losses.