Dalal Street’s Top Stories at Midday.
2 PM UPDATE, 13th December 2018:
DAX (+49, 10929)
CAC (+103, 4909)
FTSE (+50,6904)
DOW Futures (+164, 24696)
NASDAQ Futures (+69, 6831)
Nifty (+91, 10829)
Bank Nifty (+1.38%, 26595)
Bullish sentiments prevail at Dalal Street.
Nifty trading on a firm note as stocks regain strength in afternoon trade..!!
Positive global cues and strong domestic economic data key catalysts. The big question amongst traders is whether the strength witnessed is just a knee-jerk response to hopes of truce between U.S-China or the rally holds some more promise. The street will get ultra bullish if the Fed chief echoes his recent speech which was interpreted as signal that Fed would ease up on raising interest rates.
From here on the catalysts would be:
1.FOMC meet on 19th December 2018.
2.China preparing a plan to give foreign companies greater access to local markets.
3.British Prime Minister Theresa May survived a no-confidence vote.
4.Huawei executive out on bail, Trump says he’ll intervene if needed.
5.India’s Consumer inflation (CPI) eases to 2.33% in November driven by weaker food inflation; the lowest level in nearly 17 months.
6.India’s Industrial Production (IIP), was at a better-than-expected 8.1% in October.
7. Mr. Shaktikanta Das, RBI’s new governor statement that the banking sector would be his key focus area and more measures were needed to revive lenders. The positive take away from the press conference was that Mr Das sounded dovish on inflation and growth, which could mean relaxation of some regulatory rules for banks.
(Nifty at 12.00 PM: Nifty 10785, up 48 points)
9.30 AM update, 13th December 2018
(Nifty: 10813, UP 75 points):
Up, Up and Away. The benchmark Nifty zooms in early action joining the conga line rising worldwide stock markets. The Indian Rupee too strengthens to 71.60, up 25 paise.
PSU Bank Index is leading the charge, up 2.62 followed by Small-Cap and Large cap, up 1.48% and 1.15% respectively.
Amongst momentum stocks, India bulls Housing Finance (+4%, 764) YES BANK (+3.43%, 193) SBI (+2.86%, 293.40)
SUN PHARMA slips 2.62% at 420. Also down is yesterday’s star performer UPL, -1.41% at 779.
9 AM UPDATE, 13th December 2018:
DOW FUTURES (+95, 24661) NASDAQ FUTURES (+40, 6808) SGX NIFTY (+48, 10836) NIKKEI (+215, 21818) HANG SENG (+357, 26544) SHANGHAI (+33, 2635)
The big question: Will Santa Claus Visit Dalal Street This Year?
Honestly speaking, much will depend on the next big catalyst: FOMC meet outcome on 19th December 2018.
The street will get ultra bullish if the Fed chief echoes his recent speech which was interpreted as signal that Fed would ease up on raising interest rates.We reiterate, the expected FOMC’s soft tone is likely to be the biggest trigger for the bulls camp with aggressive targets on Nifty at 11,000-11,111 zone. So a Santa rally is on the cards and this time the Federal Reserve chief Jerome Powell could play Santa Claus for Dalal Street and worldwide stock markets.
10.00 AM update, 13th December 2018:
Nifty’s CMP 10,800 (Up 62 points). Slight profit booking seen amidst overbought technical conditions on intraday charts. That said, establishing long positions on any excessive dips should be the preferred strategy.
What Technical Tells Us On Nifty:
Please note, Nifty has surpassed and is now trading well above its 200 DMA at 10,751. The bulls have taken total control.* All bullish eyes at psychological 11000 mark–perhaps after 19th December 2018.
Nifty’s KEY SUPPORTS: 10,631 & 10,501.
Nifty’s KEY HURDLE: 10833 & 11,000 zone.
Nifty’s INTRADAY RANGE: 10,721-10,821.
Nifty’s OUTLOOK FOR THE DAY: Trade light for the day.
Pursue Opportunities in commodities at 10.30 AM:
Gold (-1, 1249). Positive Bias. Buy on dips.
MCX Gold (-0.27%, 31647). Hurdles at 32451. Support seen at 31201.
Silver (+0.002, 14.84). Buy on dips. Hurdles at 15.05.
MCX Silver (-0.44%, 38393) Positive Bias. Hurdles at 39601.
Crude Oil (+0.13, 51.33). Sentiments still negative despite OPEC-led price cut. Strength seen only above 55.
MCX Crude Oil (-1.68%, 3687). Intraday hurdles at 3838.
Copper (+0.023, 2.787). Hopes of U.S- China trade truce seen key positive catalyst.
MCX Copper (0.43%, 445). Positive bias. Targets seen at 461.
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Team LotusFunds
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