Santa rally! Nifty seen at 11,100 soon; hold on tight, breath-taking ride in the works
Investors are cautious on markets as US Federal Reserves is seen to hike policy rates for the fourth time this year, and not only that, slower pace of rate hikes are foreseen next year.
After showing a compelling performance in previous trading sessions, the 50-scrip index Nifty has today reversed its trend. The index was trading at 10,932.50 down by 34.80 points or 032% at around 0956 hours. Nifty's current status was in line with benchmark index Sensex, which is trading down by 120 points at 36,363.52 at present after US Federal ordered an interest rate hike (0.25 per cent hike, to a target range of 2.25-2.5 per cent). What is known is that, US Federal Reserves is seen to hike policy rates for the fourth time this year, and not only that, slower pace of rate hikes are foreseen next year.
Today, gainers list in Nifty involved Yes Bank taking the lead at Rs 183.30 per piece above by 2.09%, followed by Asian Paints at Rs 1,428.80 per piece up 2.04%, Indiabulls Housing Finance at Rs 852.85 per piece higher by 1.57%, Ultratech Cement at Rs 4,123.25 per piece up 0.95% and Sun Pharma at Rs 427.10 per piece gradually up by 0.78%.
On the other hand, losers list included Hindalco in top spot trading at Rs 221.05 per piece down 2.69%, followed by Vedanta at Rs 202.50 per piece below 2.10%, NTPC at Rs 147.60 per piece lower by 1.47%, HDFC at Rs 1,954.60 per piece down 1.37% and Bharti Airtel at Rs 318.65 per piece down 1.26%.
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While today Nifty is seeing selling pressure,but one should not panic as it believed that the index will earmark up to 11,100-mark ahead.
Mustafa Nadeem, CEO, Epic Research said, "Derivatives data pointed to a trending market ahead of expiry next week with Writers active at 10900 - 10800 while we have seen significant bias on the long side with higher built up seen in 11000 - 11100. All this points to a Santa rally for bulls."
In Nadeem's view, "Though, we may see some profit booking which is due as the range for gains gets smaller an at that point in time it would be important to re-read this data. As with expiry next week and Muted volatility we would be gauging how the year ends. All in all, it is a dreamland for bulls with Crude below $50 and INR around $70."
For outlook ahead, Nadeem says, "With a Rising window on charts which indicate strong support at 10820 - 10900 we expect upward momentum to continue and price should test higher levels of 11100 - 11050."