Markets extended gains for the fifth straight week after optimism prevailed on back of exit poll results with Sensex posting bullish belt hold bar on weekly basis. Sensex, which was just inches away from all-time highs may be opening with gap up after 3-1 victory in state elections for the BJP and may be forced to test 1.5% higher resistance line of 68,415. The weekly RSI which is showing signs of third-degree negative divergence may limit any significant upside for market as concerns like strengthening JPY and breakout in gold prices may divert more of global liquidity to alternative asset class. We expect Sensex to activate breakout on close 68,415, else the market would have an ability to repel back with similar impact.
The RBI Monetary Policy is scheduled from 6 December to 8 December. The MPC is likely to opt for another rate pause. Other than this, domestic and macro-economic data along with trends in global markets will be watched. Investments by institutional investors will also be watched closely.
Sensex 30 Chart
Stocks to watch
Positive Read through
- Hero Moto – November total sales increase d by 25.6 pct, domestic sales up by 25.4 pct YoY.
- Eicher motors – November Royal Enfield sales rises13 pct, exports rise 2 pct YoY.
- Tata power – To acquire Bikaner-Neemrana trans project, estimated cost at Rs. 15.4 bn.
- Hind Zinc/Vedanta – Hind Zinc board meet on 6th December to consider dividend.
- Jubilant Food – Wholly-owned arm increases stake in DP Eurasia to 53.52 pct.
- Granules – Gets US FDA ANDA nod for Sildenafil for oral suspension.
- Cochin Shipyard – Shipping Ministry, World Bank, Cochin Shipyard discuss green vessel initiatives.
- Alkem Labs – US FDA issues form 483 with 3 observations for Api unit in Mandava.
- Syngene – Concludes acquisition of Biologics manufacturing facility in Bengaluru from Stelis Bio.
- Strides Pharma – Launches Icosapent Ethyl Acid soft gel cap with Amneal.
- Zydus Life – Company gets USFDA nod for generic heart failure treatment drug.
- Coal India – November coal production at 66 MT, up 8.8 pct YoY.
- Lupin – Company introduces Norgestrel, Ethinyl Estradiol tablets in U.S.
- Deepak Nitrite – Company gets SEBI nod for incorporation of new company.
- Tea stocks – Tea production in India increases by 12.06 pct to 182.84 mn kg in October this year.
Negative Read through
- Siemens India – Siemens AG to acquire 18 pct from Siemens Energy at Rs 2,952.86/Share.
- CAMS – Warburg Pincus may sell 8 pct Via block, floor price Rs 2,550/Share.
- Veto Switchgears – Promoter Stake had fallen from 50.08 pct in June to 47.15 pct in September.
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