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Market Ahead, December 30: Top factors that could guide markets this week

Investors will shift their focus to macro data, auto sales numbers, and global events for cues as trading volume is set to pick up in the latter part of the week.

Public sector banks will be in focus today as the Reserve Bank of India will purchase 10-year bonds worth Rs 10,000 crore, while simultaneously selling four bonds maturing in 2020 for up to the same amount in the open market. It conducted a similar operation last week.

In today’s session, investors will also react to stock-specific developments over the weekend.

Going ahead, stocks of automobile companies will react to sales data for the month of December that will start pouring in from January 1.

This week, market participants will await the release of a host of macro data to get a clearer picture of the state of the economy. This includes the infrastructure output data for November which is slated for release tomorrow. Markit Manufacturing PMI for December is scheduled for Thursday.

In the primary market, Prince Pipes and Fittings will get listed on the stock exchanges today. The issue was sold in the price band of Rs 177-178 between December 18 and December 21. Overall, the issue was subscribed 2.22 times.

Besides, traders will also take cues from the Rupee’s trajectory, oil price movement, and foreign fund flow.

On the global front, market participants will track any progress in the US-China trade talks. They will also follow the key data points to be released across the world this week.

Globally, Asian stocks drifted lower on Monday. Tokyo’s Topix index fell 0.6 per cent in early trade while Australia’s ASX 200 Index fell 0.8 per cent. Markets in Korea and Hong Kong were little changed. The SGX Nifty was also trading with minor cuts, indicating a flat to negative start for the domestic indices.

In commodities, oil prices rose to the fourth consecutive weekly gain on Friday, steadying at three-month highs.

Back home, benchmark indices snapped their three-day losing streak on Friday. The S&P BSE Sensex gained 411 points to close at 41,575, and the Nifty50 ended 124 points higher at 12,251.

Going ahead, analysts say that the traders should try to buy any dip at higher levels with 12,200 as support and 12,300 as resistance. However, if somehow Nifty breaches the level of 12,300, it will lead to short covering move up to 12,400.

In the end, here’s a trading idea for you by CapitalVia Global Research Limited which recommends buying Jubilant Foodworks above Rs 1,630 for the target of Rs 1,730 with stop-loss at Rs 1,562.

Source: Maalaimalar