This week, markets will first react to the GDP numbers and auto sales data. The numbers released post market hours on Friday showed that India's GDP rate slipped to a six-year low of 4.5 per cent in the September quarter. Meanwhile, the output of eight core infrastructure industries contracted by 5.8 per cent in October and as many as six of eight core industries saw a contraction in output in October.
Auto stocks will react to the November sales data released on Sunday according to which sales four- and two-wheeler slid by almost 8 per cent in November.
Telecom stocks will also be in focus today after Bharti Airtel and Vodafone Idea on Sunday announced a tariff hike in the range of 15 per cent and 40 per cent across different plans. The tariff hike will be applicable from December 3.
Going forward, the focus will shift to the three-day Monetary Policy Committee meeting of the RBI that begins tomorrow. 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.
Globally, developments in the US-China trade talks will keep investors on their toes. Although increasing tensions over Hong Kong has unsettled market confidence, investors are nonetheless hopeful that Beijing and Washington could reach a compromise in trade talks.
Consequently, global shares ticked up on Monday. MSCI's index of Asia-Pacific shares outside Japan was up 0.17 per cent while Japan's Nikkei rose 0.85 per cent. SGX Nifty, though, was trading slightly lower in Monday's early trade, indicating a flat to negative start for the domestic indices.
In commodities, oil rebounded after a big fall late last week with Brent crude futures rising over 1 per cent to $61.19 a barrel. Going ahead, investors will keep a keen eye on the December 5 meet of oil-producing group Opec and its allies which will decide on the crude production levels.
Now let's shift our focus back to the domestic markets. For the coming week, analysts see Nifty reaching the 12,200 – 12,290 levels. On the lower side, 12,000 followed by 11,883 are now likely to provide good support for the market.
In the primary market, the initial public offering of Ujjivan Small Finance Bank, a subsidiary of NBFC Ujjivan Financial Services, will open for subscription today, with a price band of Rs 36-37 per share.
And before we wrap up, here's a trading idea by Angel Broking which recommends buying Lupin at current market price for the target of Rs 838-850 with stop-loss fixed at Rs 781.