Nifty 8171 /Sensex 26515/ Bank Nifty 18393
06 Advances /45 Declines/ 0 Unchanged
“Oil rally drags Sensex 232 pts, Nifty below 8200; banks weigh”
Sharp rally in crude oil prices, contraction in factory data and likely delay in GST implementation drove the market lower. In addition, globally investors also maintained cautious stance ahead of two-day Federal Reserve's meeting that will begin on December 13.
Bears strengthened their position on Monday as equity benchmarks fell 1 percent on top of 2 percent loss in previous week. Sharp rally in crude oil prices, contraction in factory data and likely delay in GST implementation drove the market lower. In addition, globally investors also maintained cautious stance ahead of two-day Federal Reserve's meeting that will begin on December 13.
The 30-share BSE Sensex plunged 231.94 points or 0.87 percent to 26515.24 and the 50-share NSE Nifty fell 90.95 points or 1.10 percent to 8170.80.
Experts expect the market to fall further in near term as concerns raised over inflation after spike in crude oil prices and economic growth due to volatility in factory data.
"We don't think the worst is over for the market. We continue to be concerned about a demand slowdown, worse than current market belief and problems for the financial system," Neelkanth Mishra of Credit Suisse says.
Vinod Nair of Geojit BNP Paribas Financial Services says the prospects of a Fed rate hike is almost factored by the market but the focus remains on US economic outlook & inflation, though investors are likely to view the event in conjunction with the policy stance of the newly elected US president.
The broader markets also caught in bear grip as the BSE Midcap dropped over a percent on weak breadth. About 1544 shares declined against 1107 advancing shares on the BSE.
Crude oil prices jumped over 4 percent to their highest level since 2015 after OPEC and other producers over the weekend agreed to jointly reduce output in order to rein in oversupply.
“Forex - Dollar edges lower as Fed meeting looms”
The dollar edged lower against the other major currencies on Monday, but held near recent highs amid expectations that the Federal Reserve is on track to raise interest rates this week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased to 101.56.
Little doubt now remains that the Fed will hike rates for the first time in a year at the conclusion of its meeting on Wednesday, with investors pricing in a 100% chance of an increase, according to federal funds futures.
The Fed is also expected to announce updated economic forecasts and markets will be watching for signals the outlook for inflation and the expected pace of rate hikes in 2017.
Higher rates boost the dollar by making the currency more attractive to yield-seeking investors.
Key Results Today
Bajaj Hind
OMAXE
Coal India
Bombay Rayon
HDIL
Prism Cement
Hind Copper
DEN Networks
KSCL
RESULT ANALYSIS & POLL
IMPORTANT RESULT: Coal India
TECHNICAL LEVELS: Coal India
CMP 305 Coal India has immediate Support at 300 and resistance at 312.
Break and sustain below 300 will take Coal India 294—290 else it can test its resistance of 312. Break and sustain above 312 will take Coal India to 319—323 mark.
Trade with levels only.
OUR RECOMMENDATIONS
Our call to buy HDIL 62.50 CE around 2.50 proved great as it flared and made high of 3.15 before settling at 2.55 on closing. We booked full profit around above 2.95
[Profit of Rs 3600 on 1 Lot]
Our call to buy Bata 430 CE around 10 proved great as it flared and made high of 13.70 before settling at 6.15 on closing. We booked part profit around above 13.70
[Profit of Rs 4070 on 1 Lot]
Hope you all minted money in Tata Elxsi too... Flared and achieved it's target very well.
Now what to expect??
Nifty and Bank Nifty Levels
Unable to breach it's resistance level of 8300 and crashed vertically. We recommended selling below 8230 mark.
Now.... Nifty has support at 8150 and resistance is intact at 8230.
Break and sustain below 8150 will take Nifty to 8120--- 8070 mark or else it can test its resistance of 8230 again.
Above 8230 next resistance seen around 8270—8300.
On the other hand....
Bank Nifty has crucial support intact at 18400 and resistance is intact at 18650—18800.
Break and sustain below 18400 will take bank nifty to 18200—17900 else it can test its resistance of 18650---18800 again.
Today's Top Pick
Trade With levels... More will update during market hours.
More will update soon!!
