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Market Ahead, Dec 3: All you need to know before the Opening Bell

Nifty's close above 12,000 levels is a positive in the short-term. And while the MACD is well in the sell mode, the price has not confirmed the reversal from up to down

BS Web Team  |  New Delhi 

Investors will shift their focus to the three-day Monetary Policy Committee meeting of the RBI that begins today even though concerns over the health of the domestic economy may keep investor sentiment in check. Analysts see the MPC slashing rates by up to 25 basis points (bps), along with a marginal cut in FY20 gross domestic product (GDP) growth forecast.

Also, the price hikes announced by Bharti Airtel and Vodafone Idea across prepaid segments will come into effect from today.

Apart from this, oil price, rupee's trajectory, and foreign fund flow will also influence market direction.

Globally, US President Donald Trump stunned with tariffs against Brazil and Argentina, recharging fears about global trade tensions, while weak U.S. factory data added to the investor gloom.

Consequently, Wall Street stepped back from last week’s record highs on Monday. The Dow Jones Industrial Average fell 0.95 per cent, the S&P 500 lost 0.86 per cent, and the Nasdaq Composite dropped 1.12 per cent.

Asian shares skidded in Tuesday's early trade. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.45 per cent in early trade, with Australian shares dropping nearly 2 per cent, on track for their worst day in two months. Japan's Nikkei shed 1.1 per cent. The SGX Nifty was also trading lower in the early trade, indicating a negative start to the day for domestic indices.

In commodities, oil jumped above $61 a barrel with Brent adding 18 cents to trade around $61.10 per barrel.

Back home, benchmark indices ended flat in a lackluster trade yesterday. The S&P BSE Sensex closed 8 points higher at 40,802. On the NSE, the broader Nifty50 index held the psychological mark of 12,000, and closed at 12,048, down 8 points.

According to analysts, Nifty's close above 12,000 levels is a positive in the short-term. And while the MACD is well in the sell mode, the price has not confirmed the reversal from up to down. Hence, traders should continue to maintain short-term bias up for the target of 12,150 with a stop loss of 11,950.

In the primary market, The initial public offering (IPO) of Ujjivan Small Finance Bank was subscribed 1.7 times on Monday, the first day of the IPO, buoyed by strong participation from retail investors.

Here's a trading idea by Anand Rathi shares and Stock Brokers which recommends buying Pidilite at current market price for the target of Rs 1,375 with stop-loss fixed at Rs 1,290.

First Published: Tue, December 03 2019. 08:00 IST
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