Sensex and Nifty continued their stellar run as they added to gains however once more this week. Nifty managed to breach 13,000 for the 1st time in history although Sensex crossed 44,000 points. Although they did witness some profit booking but technical analysts think that the trend has not reversed as of now. “Technically, post strong uptrend rally the Nifty has formed Doji candlestick pattern which clearly indicates indecisiveness between bulls and bears. However, the medium term texture of the benchmark index is still bullish and likely to continue in the short run,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
GDP numbers to help momentum: The optimistic surprise that the Gross Domestic Product has contracted much less than anticipated is most likely to help the optimistic sentiment. “The Q2 GDP numbers came in at a big positive surprise. Though Agriculture and Services numbers came in a little below expectations, Manufacturing growth has come in much stronger than expected. Equity markets could open higher on Tuesday reflecting the positivity of the Q2 GDP numbers,” said Dhiraj Relli, MD & CEO, HDFC Securities.
Bulls run wild in Broader markets: Broader markets are roaring. During the week, BSE Midcap index zoomed 1.66%, jumping smartly following a mid-week correction. The BSE Smallcap index soared 3.75% through the exact same period although Nifty smallcap 50 surged more than 5%. The current outperformance of the modest and midcap stock may well continue in this liquidity driven rally, analysts say. “Midcap IT, Smallcap IT are good to invest in, stocks that are concentrated towards FMCG products too can be looked at. Investors should avoid transport and multiplex stocks,” Vishal Wagh, Head of Research, Bonanza Portfolio told The Spuzz Online this week.
MSCI rejig: Changes to the MSCI indices will come into impact from Monday exactly where India’s weightage in the international indices is slated to improve. This move by the international index provider has pulled lots of foreign funds to invest in India in the previous couple of weeks. “A rejig in MSCI Global Standard Index effective November 30th and a possible increase in India’s weight in the global index led many international fund houses to undergo a massive rejig in their portfolios due to which India witnessed massive monthly inflows from FPIs this month,” mentioned Nirali Shah, Senior Research Analyst, Samco Securities.
What do the charts say: “Nifty on the weekly chart has formed an interesting pattern like doji at the new all time high of 13145. Normally, a formation of doji after a reasonable upmove could indicate alert of trend reversal post confirmation of weakness in the subsequent weeks,” mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that markets may well stay variety-bound in the coming week. Nifty would obtain resistance at 13,one hundred-13,150 levels although 12,850-12,750 would act as assistance.
IPO watch: Fast meals big Burger King’s initial public providing (IPO) will open subsequent week exactly where the firm is hunting to raise Rs 810 crore, such as a fresh situation of Rs 450 crore and an Offer for Sale (OFS) by the promoters of Rs 360 crore. Investors can bid for Burger King shares in a bid lot of 250 shares in a cost band of R 59-60 per share.
What to watch out for: For the coming weeks eyes will be on the Reserve Bank of India’s Monetary Policy Committee (MPC). “Markets are awaiting major events like RBI policy meeting, release of Manufacturing and Service PMI and banking business data which will be decisive factors driving the market in the upcoming week,” mentioned Vinod Nair, Head of Research at Geojit Financial solutions.