Chinese officials expect the U.S. will delay a threatened tariff increase set for Sunday as both sides focus on de-escalating tensions by cutting import taxes currently in place rather than removing specific products from the target list, according to people familiar with the matter.
If Nifty trades below 11,854 for more than 30 minutes next session, then it would most likely test the 50-day simple moving average at 11,749, where some buying interest can emerge. For the time being, Nifty does not promise stability or upside until it closes above the 11,953 level
Bears in full control now on Dalal Street. What’s next?
Nifty formed a bearish candle on the daily chart. The index has reached near good demand zone of 11,840-11,800. If it manages to hold above said the zone, then we may see good recovery towards immediate hurdle of 11,950-12,000. Overall, the index has formed a narrow range of 11,800-12,100 and traders can use ‘buy on dips’ strategy near lower band of 11,800
- Rohit Singre, Senior Technical Analyst, LKP Securities
We are approaching Wednesday on a much weaker footing. Though we might see some initial technical pullback. However, apart from this, the broader technical setup remains weak. Any technical pullback is likely to get sold into and there are higher chances of Nifty drifting towards 11,800, which is the lower end of the broad consolidation zone that the market had formed. The resistance has shifted lower to 11,900 though the highest Call OI concentration still stays at 12,000 strike
- Milan Vaishnav, Founder, Gemstone Equity Research & Advisory Service
Nifty formed lower highs and lows for the third consecutive session and closed below its immediate support at 11,888 level, which doesn’t bode well for the bulls. Now, we may see the continuation of the ongoing corrective move towards its next support at 11,800 and then 11,700 levels. On the upside, resistance shifted lower towards 11,950 and 12,050 levels
On the higher side, the key hourly moving averages maintained pressure on Nifty. As a result, Nifty went on to breach the swing low of 11,888 and has fallen towards the lower end of the falling channel on the hourly chart. The index is approaching the support zone of 11,820-11,800 where there are multiple parameters to offer support to the index. However, breach of 11,800 on a closing basis would mean further weakness. On the flip side, Nifty needs to surpass 11,980-12,000 in order to indicate recommencement of the uptrend
After a Doji formation in the earlier session, profit booking continued with Nifty negating the Doji formation. The index has closed below the 20-EMA for the past few sessions. Near-term upward momentum is fading out and a phase of correction/consolidation is setting in. Market breadth was sharply negative, indicating the overall mood on the Street. Near term support is placed at 11,800, however, the stronger important support zone is placed at 11,700, which may get tested. Support zone is likely to hold in the near term. Support: 11,800-11,700 and Resistance: 11,950-12,020
- Manav Chopra, Head Research - Equity, Indiabulls Ventures
We continue to maintain our cautious stance on Indian markets due to stretched valuations. Going forward, trade developments between the US and China, Fed rate decision and election in the UK (Thursday) would dictate trend globally, including India. On the domestic front, given slower growth and higher inflation, the market participants would keep a close watch CPI, IIP and WPI data scheduled this week
- Ajit Mishra, VP - Research, Religare Broking
Selling in domestic market accentuated as investors turned more cautious over double whammy of inflationary pressure and weak growth. Another factor which is impacting market is the likelihood of maintenance of status quo on rates by both US Fed and ECB. Given domestic premium valuation of key indices, market is highly susceptible for near term volatility
- Vinod Nair, Head of Research, Geojit Financial Services
CLOSING BELL: ITC, TCS, Axis Bank pull down Sensex by 248 pts, Nifty ends below 11,900; PCJ, YES Bank plunge up to 10%
Markets will continue to remain risky, here's why
Nifty Futures Premium continues to be high at 40 points Put:Call ratio has hardly moved down despite a few negative… https://t.co/fCfTbzBx0C
China iron ore surges to over four-month high amid supply uncertainty, demand hopes
Iron ore futures in China rose to their highest in more than four months on Tuesday on supply uncertainties expected to emerge during the first quarter of next year. The most traded iron ore futures contract on the Dalian Commodity Exchange, for May 2020 delivery, soared as much as 3.2% to 662 yuan ($94.05) per tonne in morning trade, the most since Aug. 7. It jumped 2.96% to 661 yuan per tonne as of 0330 GMT.
SBI on Tuesday reported about Rs 12,000 crore divergence in their bad loans for the last fiscal. As per the assessment done by the RBI, the gross NPA of the SBI was 11,932 crore more at Rs 1,84,682 as against Rs 1,72,750 reported by the bank for 2018-19, SBI said in a regulatory filing. Similarly, the net NPA was 77,827 crore compared with disclosed figure of Rs 65,895 crore, reflecting divergence of Rs 11,932 crore.
Unless the broader economic growth starts to improve, you will see other sectors of the economy slowly starting to participate and then there will be options for investors to look at some of the other sectors where the valuations are attractive, and not just the top 10-12 companies. It is a question of growth visibility in some of these spaces. Once that starts to emerge, the breadth will improve and money will start to move away from some of these highly priced stocks.
- Mahesh Patil
Chris Wood on top trends for the coming decade, market volatility & more
JSW Steel shares decline on steel output concerns
Shares of JSW Steel on Tuesday fell over one per cent after the company reported a 7 per cent fall in crude steel output for November 2019. On the BSE, the shares opened on a weak note and further fell to Rs 254.50, down 1.64 per cent from its previous closing.
On the NSE, the stock fell 1.68 per cent to Rs 254.50.
The company on Monday posted a 7 per cent fall in November 2019 crude steel output at 12.90 lakh tonne (LT).
Motilal Oswal maintains buy on L&T, but cuts target price to Rs 1,680 from 1,830
The brokerage firm cut its core E&C (engineering and construction) EPS estimate by 1.5%/3.4% for FY20/FY21, incorporating lower order inflow/revenue growth assumption. Consolidated EPS has been cut by 1.3%/2.6% for FY20/FY21. It have also lowered its target P/E multiple on core business to 20x from 22x on account of macro uncertainties.
Media shares decline; ZEEL down 3%
Media shares were trading with losses in Tuesday's afternoon session.
Shares of Zee Entertainment (down 2.82 per cent) , Jagran Prakashan(down 2.07 per cent) , Hathway Cable& Datacom (down 1.7 per cent) , Dish TV India (down 1.48 per cent) , TV18 Broadcast (down 1.38 per cent) , Sun TV Network (down 1.3 per cent) , Music Broadcast (down 1.22 per cent) , Inox Leisure (down 0.41 per cent) , Saregama India (down 0.4 per cent) and DB Corp (down 0.18 per cent) were the top losers in the index.
Asian shares edge down as tariff deadline hems bets
Asian equity markets eased slightly on Tuesday, tracking Wall Street declines as investors fretted over a Dec. 15 deadline for the next round of U.S. tariffs on Chinese imports to take effect, Reuters reported.
If YES Bank is committed to do corrective actions, the investors would see the value and come into the bank and so let us hope for the best.
- Deven R Choksey, MD, KR Choksey Investment Managers
Grey market is suggesting a premium of Rs. 27 for Ujjivan SF, indicating a listing around Rs. 64. If we go through the overall picture then retail investors can make a listing gain of more than 50%.
- Santosh Meena, Senior Analyst, TradingBells
PC Jeweller hits fresh all-time low after Crisil downgrades rating to default category
Price as on 10 Dec, 2019 12:00 PM, Click on company names for their live prices.
I think it's a pause rather than a stop. Our house view is a 65-basis-point rate cut next year. RBI expects the fiscal path to play a bigger role because cutting down interest rates without it getting transmitted in reduced rates is irrelevant.
- Kaushik Shaparia, CEO, Deutsche Bank, India
OMCs trade in the red; HPCL down 2%
OMCs were trading in the red in Tuesday's session with their sectoral index on BSE trading lower.
Shares of GAIL (India) (down 2.07 per cent) , HPCL (down 1.73 per cent) , Bharat Petroleum Corporation (down 1.12 per cent) , Castrol India (down 1.09 per cent) , Reliance Industries (down 0.87 per cent) , Gujarat State Petronet (down 0.43 per cent) , Indraprastha Gas (down 0.16 per cent) and Indian Oil Corporation (down 0.04 per cent) were the top losers in the index.
The list includes Bharti Airtel, Aditya Birla Capital, Bandhan Bank, Tata Global Beverages, Coffee Day Enterprises, Havells India, Future Enterprises, Adani Gas AIA Engineering, Supreme Industries, JSW Energy, Ashoka Buildcon and ACC, among others.
We are going to see a bit of a liquidity squeeze because a), we have seen a decent amount of selling by the FIIs. b), A lot of block deals are really hitting the market and that is sucking the liquidity out from the system. Every second day, you have a OFS or a block deal or a QIP which is not great news for the market because it is sucking out the liquidity coupled with some of the IPOs.
- Hemang Jani
Dilip Buildcon lowest bidder for Rs 826 crore Delhi Metro project
Price as on 10 Dec, 2019 10:39 AM, Click on company names for their live prices.
Morgan Stanley on RIL
Morgan Stanley maintains overweight on RIL with a target price of Rs 1,735 per share. The brokerage believes RIL's strong stock outperformance has started. RIL stock is trading at 15.2x F22e P/E, a ~20% premium to its average. RIL post-tax ROCE can rise led by tariff hike, the brokerage said. "ROCE could rise to 11% in 2 years as consumer portfolio returns," it added. However, chemicals could see near-term challenges.
Morgan Stanley on RBL Bank
Morgan Stanley maintains underweight on RBL Bank with a target price of Rs 240 per share. The brokerage cited the asset quality outlook behind the underweight rating on the stock. The brokerage suspects a build-in higher slippages and credit costs for the bank while rising share of unsecured loans is another key factor to watch.
JP Morgan on Dabur
JP Morgan maintains overweight on the stock with a target price of Rs 520 per share. If the firm stays on course with various initiatives in place, then its domestic volume growth should outperform most FMCG peers. The brokerage sees a stable margin outlook with scope for improvement overseas.
Goldman Sachs on UBL
Goldman Sachs maintains BUY rating on the stock with a target price of Rs 1423 per share. It expects gross margins to expand next year.
JP Morgan on Cement
JP Morgan advises buying Ultratech and ACC in the cement space. There are no signs of pick up in demand but the expansions continue. "Near-term weak fundamentals weigh on valuations and stock valuations may not re-rate in a hurry," it said.
More NBFCs to go offshore as funding crunch continues: Fitch Ratings
Investors who had bad experience, are booking profits and leaving but fresh inflows -- SIP inflows -- are pretty strong. Also actual gross inflows are marginally up month on month. I would not press any panic button on this.
- Sunil Subramanium
Voda Idea, YES Bank, Dish TV among most active stocks on NSE
Price as on 10 Dec, 2019 09:59 AM, Click on company names for their live prices.
Shares of YES Bank traded 5 per cent lower in Tuesday's session, ahead of a crucial board meeting to decide on investment offers that the lender has received.
YES Bank’s Board of Directors will meet later in the day to finalise and approve the details of the preferential allotment and convene an extraordinary general meeting subsequently, to obtain the approval of the shareholders for raising capital.
YES Bank is raising $2 billion by way of preferential allotment of shares. A number of foreign and domestic investors have showed interest in investing in the company, which includes Capital International, a part of the $1.87-trillion Capital Group based in the US, who has committed to invest at least $120 million in the lender.
OPENING BELL: Sensex, Nifty flat amid mixed Asian cues; YES Bank drops 4%, Vodafone Idea 3%
Podcast: What might matter on D-Street today
Pre-open session: Sensex rises 100 points, Nifty flat; rupee trades at 70.97 against US dollar
Singapore trading sets stage for flat start
Nifty futures on the Singapore Exchange traded 1.5 points, or 0.01 per cent, up at 11,966, indicating a flat to negative start for Dalal Street.
Tech view: Nifty forms bearish candle
Nifty index formed a Doji candle on the daily chart on Friday with a negative advance-decline ratio, suggesting continuation of selling pressure in the broader market. Momentum indicator MACD stayed in ‘sell’ mode.
Asian shares flat
Asian equity markets were a tad lower on Tuesday as investors refrained from making major bets before December 15, when the next round of US tariffs on Chinese imports is due to take effect. MSCI's broadest index of Asia-Pacific shares outside Japan was down just 0.04 per cent as the Asian trading day began on Tuesday. Australian shares were also 0.04 per cent lower, while Japan's Nikkei lost 0.23 per cent.
US stocks close lower
US stocks pulled back on Monday from near-record levels, as Apple and healthcare shares fell. On Monday, the Dow Jones Industrial Average fell 105.46 points, or 0.38 per cent, to 27,909.6, the S&P 500 lost 9.94 points, or 0.32 per cent, to 3,135.97 and the Nasdaq Composite dropped 34.70 points, or 0.4 per cent, to 8,621.83.
FIIs buy Rs 459 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 459.22 crore on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 74.93 crore, data suggests.
Crude prices fell further
Oil prices dropped on Tuesday for a second straight session as the cons of a slowing global demand outlook outweighed the pros of OPEC's agreement with associated producers. Brent futures were down 11 cents, or 0.2 per cent, at $64.14 per barrel by 0204 GMT while West Texas Intermediate oil futures were down 7 cents, or 0.1 per cent to $58.95 a barrel. The benchmarks fell 0.2 per cent and 0.3 per cent, respectively, on Monday.