Stock Market News- Market Outlook| Market Events| Market Trends for Dec19

 

Stock Market News-Market Outlook: Indian Stock market finished November month in a positive note. During the month of November, the Nifty gained 178.60 points while Sensex added 664.76. The NSE Banking index Bank Nifty also up 1879.85 points. On percentage-wise during the month Nifty and Sensex gained approximately 1.5% and Bank Nifty gained above 6%. ( all in spot levels)

In the month of November, the top gainers are Bharti Infra, Zee Ent, IndusInd Bank, Bharti Airtel, and Yes Bank. Bhati Infra gained 51%, the most among the lot in November. The top losers in the Nifty50 stocks are M&M, TITAN, IOCL, Larsen & Toubro, and Hero Motor Corp. M&M fell around 14% in the month of November.

In the midcap space, the Nifty midcap 100 index gained 403.25 points or 2.35% whereas the Nifty smallcap added only 69.75 points or 1.20% in November.

 

November Series  in F&O segment

In the F&O segment, Nifty futures gained 211.05 points or 1.74% in the series while Bank Nifty future was up 1890 points or approx 6% higher. During the Series, both the indices touched new record high, Nifty futures at 12196.05 and Bank Nifty futures at 32199.80 on 28th November.

 

Stock market news- last month’s highlights 

After the whistleblower’s complaints, Infosys said there was no prima facie evidence found on the complaints. Later Infosys has appointed a law firm to complete the probe. The share price of Infosys remained volatile in the last series.

The PSU stocks remained in the highlighted in the stock market news in the 1st week of November due to disinvestment. Stocks like CONCOR, BPCL, BEML were trading higher in November.

Finance minister had announced two years moratorium on the spectrum dues from the telecom companies. The telecom companies got relief after the news and telecom shares like Vodafone, Bharti Airtel, Joi were trading higher. Later the tariff hike news also added some more gains in the telecom shares.

The Yes Bank is in the stock market news quite for some time. Rakesh Jhunjhunwala had invested a 0.5% stake in Yes Bank from the open market.  The Yes Bank had a board meeting on a fundraising plan. As per the news, there is a total of 8 investors ready to invest in Yes Bank and Rakesh Jhunjunwala is one of them.

Central Bank of China had cut the interbank lending rate and Loan Prime Rate (LPR) in November to boost the economy. The lending rate cut was seen in China the first time after 2015. This helps to improve the sentiments of Asian markets in November.

Reliance Industries has hit 10 Lakh crores market capitalization, it is the first Indian company to do so in the market.

 

Stock Market News by Foreign rating house

Moody had downgraded India’s rating from stable to negative due to increased risk in economic growth. Finance Minister also responded that India’s inflation is under control and India continues to be amongst the fastest growing the major economies the world.

Later in November Moody has also cut India’s GDP growth forecast for the 2019 to 5.6% from 5.8% estimated earlier.

Nomura has also lowered India’s GDP for 2019 from 5.7% to 4.9% and for 2020 GDP growth from 6.9% to 6%. The market reacted negatively to both Moody’s rating and Nomura’s GDP growth cut projections.

Stock Market News on macro data

The September IIP numbers released in November was contracted by 4.3% compared to -1.1%. This contraction came in the second month in a row due to a slowdown in Manufacturing, Mining, and Power sector. 

The CPI number came in the month of November inches higher on MoM basis due to an increase in food price whereas the WPI came lowered. 

The Q2 GDP number came at six years low at 4.5% and six months average 4.8% on the last day of the month after the market hours. The impact on GDP data can be seen in December month only.

In the domestic front, the macro data released in the month of November was not favorable for the market. But still, the market gained because of positive global cues and continuous inflow from the FIIs. 

 

Stock Market News on  the global front

The stock market sentiments improved in the global front on the hopes of US-China trade deal signing news. As per the report, the phase one agreement was in the final stage but it is getting delayed. The fresh tension on Hong Kong issues can further delay the trade war deal and this may create negative sentiment in the market.

 

Stock market events for December:

The stock market will first react to the weak GDP number which was announced last Friday aftermarket. The 4.5% GDP already factored in the market so we may not see any aggressive profit-booking on Monday. The main events for the month of December are as given below.

02-12-2019	Auto Sales Number for November
02-12-2019	Markit Manufacturing PMI
04-12-2019	Markit Service PMI
05-12-2019	RBI Monetary Policy
12-12-2019	Industrial Production number
	CPI Inflation Rate
13-12-2019	WPI Inflation rate
31-12-2019	Infrastructure Output Nov
	Current Account Deficit

On the Global front, the Indian stock market will react positively if the US and China phase one trade deal gets signed. If it gets further delayed then the market will move mild negative to sideways. The FIIs were quite positive in the Indian markets in November. They have bought Rs 12,924.93 crores in the month of November in the cash segment whereas DIIs were the net seller. 

As long as FIIs are net buyers in the cash segment and the global market is in a positive Indian stock market will remain positive. So Traders and Investors should track these two indicators to know the market trend in December.

 

Stock Market Trends for December 2019

Nifty futures Trend for Dec

Primary Trend Nifty Futures: Up to Sideways

Range-Bound Trend of Nifty Futures: All up Moves Initiates Profit Booking (Sale) @ 12,410 whereas All Down Moves Initiates Short Covering (Buy) @ 11790 

You can also now  PREDICT THE NIFTY here

Banknifty futures trend for Dec

Primary Trend of Banknifty Future: Up to Sideways

Range-Bound Trend of Bank Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 32970, whereas All Down Moves Initiates Short  Covering (Buy) @ 31010

 

Conclusions

Indian stock closed positively in the month of November due to strong FIIs inflow, positive global cues and better than expected Q2 numbers. For December, in the first week, GDP data, Auto sales, RBI Monetary Policy, PMI data will make the market volatile. Whereas Industrial Production, CPI and WPI will dominate the market in the second week. 

The US-China trade deal, global cues, and other stock market news will time to time make the market volatile in December. In the fourth week, there will less activity in the market due to Christmas and New Year.

 

If you are an investor, you can follow the post of the top 10 stocks to buy for 2020.

Traders can follow our daily Nifty and Bank Nifty technical levels here.

 

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Editor’s Desk