Markets for the week extended gains for seventh straight week which forced Sensex to cross weekly resistance line of rising wedge placed at 70,400 on back of gains mainly from technology Index. The short covering by FIIs on weekly call options further amplified upmove in Nifty 50 index forcing them to delta neutral cash based buying worth Rs 9,000 crore. At the current juncture, the major risk for Indian markets comes for appreciating Japanese Yen as Nifty 50 linked Notes traded in Tokyo exchange having AUM of 41 bn USD has already been showing signs of reversal from upper channel and further appreciation in JPYINR may trigger sudden fall in Indian markets. For Sensex, 70,400 should be seen as immediate reversal levels while resistance come in range of 72,000-72,300. A breakout in India VIX above 200 DMA should be seen that market may be prone to reversal after single day decline of 1.6%.
Sensex 30 Chart
Stocks to watch
Positive Read through
- Infosys – Reports say company issues salary hike letter to employees, avg hike below 5 pct.
- Sugar Cos – Government reverses decision to ban use of juice for ethanol making.
- Tata Power – Tata Power Solar Systems signs Rs. 4.18 bn contract with NTPC.
- Zydus Life – Receives USFDA nod for phase-Il clinical trial of Parkinson drug.
- Lupin – Gets USFDA nod for Allopurinol Tablets, to be manufactured at Pithampur unit.
- Vedanta – Invests Rs. 1 bn in unit Exide Energy Solutions.
- Mazagon Dock – Company gets USD 42 mn order from a European client for 3 vessels.
- Welspun Corp – Arm Sintex BAPL finalises investment of up to Rs 8.07 bn.
- Insecticides India – Gets 20-year patent from government for a novel compound.
- Salasar Techno – Board meets on December 20 to consider bonus issue.
- Landmark Cars – Gets Nod from Mercedes-Benz & MG to opening dealership.
- IRB Infra – Associate received an award from NHAI for Tolling, Operation, Maintenance.
- Power Companies – Peak power demand to touch 366 GW by 2032: Official.
- Lemon Tree – To open 100th property with the launch of Lemon Tree Premier, Malad, Mumbai.
- NBCC – Company sells a total unsold commercial inventory for sale value of Rs 96.57 bn.
Negative Read through
- Zee Ent – Requests Sony to extend date required to make the merger effective.
- United Spirits – Receives Rs. 3.65 bn claim from existing national institutional customer.
- Granules – USFDA inspects Virginia facility, issues 5 observations.
- Solar Ind – 9 people die in explosion at Nagpur Pellet Casting Plant on Dec 17.
- Kfintech – General Atlantic Singapore fund sells 9.99 pct of total 48.2 pct stake.
- Gandhar Oil – Q2 sales declined by 6.4 pct; profit down by 11.3 pct.
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