With the onset of the Christmas week coupled with the impending expiry of the December series F&O contracts on Thursday, traders can expect a volatile and rangebound session in the markets today. Equity markets will remain closed tomorrow for Christmas.
As such, traders will look at stock-specific developments and global factors for cues in today's session.
Investors will take note of the IMF forecast for India's GDP. The International Monetary Fund has retained India's economic growth forecast at 6.1 per cent for FY20, but said risks to the outlook are tilted to downward side.
Yesterday, the Reserve Bank of India conducted its first simultaneous ‘buy and sell’ open market operations, in which it bought more bonds than it sold. The auction results showed that while the RBI bought its full quota of 10-year bonds, it sold just Rs 6,825 crore of short-term bonds maturing in the next one year.
In stock-specific news, the Registrar of Companies in Mumbai has moved a review petition before the NCLAT in the Tata-Mistry dispute seeking the removal of the words "illegal" and “with the help of RoC" in the tribunal’s order pertaining to Tata Sons' transition from a public to private company, in September 2017.
Globally, Wall Street’s main indexes posted record closing highs on Monday. The Dow Jones Industrial Average rose 0.34 per cent, the S&P 500 gained 0.1 per cent and the Nasdaq Composite added 0.23 per cent. Asian stocks began Tuesday's session in muted fashion. Japan’s Topix Index was little changed. Australia’s ASX 200 was flat and Hong Kong’s Hang Seng futures were little changed earlier. The SGX Nifty is also indicating a flat to negative start for the domestic indices.
In commodities, oil prices edged higher on Tuesday. Brent crude was up 7 cents at $66.46 a barrel.
Back home, benchmark indices ended nearly unchanged on Monday. The benchmark S&P BSE Sensex closed 39 points lower at 41,643 level. On the NSE, the broader Nifty50 index declined 9 to settle at 12,263.
Going ahead, analysts say that the daily as well as weekly MACD is still in buy mode while there is a good support at 12,150 levels. Hence, the bulls still have an upper hand on that front.
In the end, here's a trading idea for you by Anand Rathi Shares and Stock Brokers which recommends buying HDFC Bank at current market price for the target of Rs 1,340 with stop-loss at Rs 1,280.