Markets succumbed to selling pressure on Tuesday after inability to sustain above the psychological barrier of 70,000 in Sensex and was followed with negative closing of around 0.5%. The long-term charts clearly depicts completion of rising wedge on long term basis and we expect signs of initial weakness to prevail on close below 69,200 which turns out to be support of Regression Channel of the recent up move. The risk of larger reversal may be felt only on close below 68,400, till then we expect selling to remain short lived. Key risk for Indian markets comes from appreciating Japanese Yen and a move above 58.80 in JPYINR should be seen as a matter of major concern in the near term. Today being Fed meeting, all eyes would be watching the extent to which Fed may resort to loosening interest rate for next year.
Sensex 30 Chart
Stocks to watch
Positive Read through
- ITC – Reveals next growth strategy, retains margin improvement guidance.
- Axis Bank – Sources say, Bain Capital may sell 1.1 pct equity via block deal.
- IndiGo – Gets 6-month lease extension for Turkish Airlines’ b777 aircraft.
- Indian bank – Reports say, Rs 40 bn QIP launched, indicative price at Rs. 394/sh.
- Zee Ent – Plutus Wealth management buys 9 mn shares at Rs. 292/sh via block.
- SRF – Commissions two new plants at an aggregate cost of Rs 2.25 bn.
- Shilpa Medi – Gets Australian regulator nod to manufacture oral mouth dissolving films.
- Wipro – Company and RSA sign a new multi-year contract to accelerate RSA’s cloud migration.
- Force Motors – Received board approval to acquire 12.21 pct shares in TP Surya.
Negative Read through
- ONGC/Oil – Crude drops nearly 4 pct, brent below USD 74/bbl.
- Laurus Labs – US FDA issues 5 observations for arms’ Visakhapatnam unit.
- Mankind Pharma – Beige sells 14.4 mn shares at Rs 1,832.43/sh via block deal.
- Titagarh Rail Allots 7.5 mn QIP shares at Rs 933/sh, 4.42 pct discount to CMP.
- Allcargo – November total volumes up 4 pct YoY, down 12 pct QoQ.
- Kiocl – Temporarily suspends operations at Pellet plant unit at Mangalore.
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