In the absence of any major positive triggers both on the domestic and global front, investors are expected to remain cautious like in yesterday's session. Therefore, another range-bound session may be on the cards today with investors looking at global cues, the rupee's trajectory, oil price movement, and foreign fund flow for market direction.
Major developments that may impact investor sentiment:
According to a report in today's issue of Business Standard, the government is focusing on private investment, economic growth, and tax incentives for the 2020-21 Union Budget. As per the report, long-term capital gains tax may be scraped and the burden of dividend distribution tax could perhaps be shifted from companies to shareholders.
In another news, telecom operators Vodafone Idea and Bharti Airtel have announced they will hike tariffs starting December 1, following record second-quarter losses reported by the two operators. The stocks may react to the development today.
Also, according to a report by a business news portal, private equity firm Carlyle has launched a block deal to sell around a 3 percent stake in SBI Life Insurance. Carlyle currently holds 9 per cent stake in the company.
Asian shares started Tuesday softer in absence of any major trigger. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1 per cent. Japan's Nikkei was 0.2 per cent lower in early trade. Australia's S&P/ASX 200 index was flat. Wall Street’s main indexes were also mostly flat. SGX Nifty, on the other hand, was trading lower in early hours, indicating a negative start to the day for the domestic indices.
In commodities, Brent crude futures fell 1.6 per cent to $62.29 a barrel.
Yesterday, benchmark indices ended flat after a listless day. The S&P BSE Sensex ended at 40,284, down 73 points, while the broader Nifty50 index ended 1 point down at 11,894.
For today, analysts recommend that traders should keep a positive bias and buy Nifty futures at every dip keeping close eye on 11,780. For now, 12,000 will act as a major resistance while 11,800 will provide support to the index.
Here's a trading idea by CapitalVia Global Research Limited who recommend buying JSW Steel above Rs 257 for a target of Rs 258 with stoploss at Rs 243.