Focus on individual stocks

The market ended with modest gains with the Sensex rose 77.01 points or 0.21 per cent to settle at 36,347, while the Nifty 50 index rose 20.35 points or 0.19 per cent to settle at 10,908.70. The Mid-Cap and small-cap indexes rose 0.21 and 0.45 per cent respectively.

The market breadth was positive as 1,441 shares rose and 1,119 shares fell.

Among the sectoral indices on BSE, the Power, Capital Goods and Telecom indexes surged 1.09, 1.08 and 0.97 per cent respectively. The Teck index (down 1.13 per cent), the IT index (down 1.08 per cent) and the FMCG index (down 0.29 per cent), underperformed the Sensex.

Market view

Sneha Seth, derivatives analyst at Angel Broking said, “The benchmark index began today’s session on a negative note, backed by sell-off seen in the global market. We witnessed some selling in the initial part of the day to bring index near the support zone of 10,800; however, index soon recovered sharply.”

“In F&O space, we saw addition of some fresh long positions in both Nifty as well as BankNifty. Meanwhile, put writer continued adding good amount of positions in 10,900 strike. On the other side, some build-up took place in 10,900-11,100 call options. Considering the above data points, we continue with our optimistic stands on the market,” she said.

Technical view

Sameet Chavan, chief analyst-technical and derivatives at Angel Broking said that for the second straight session Dow Jones had more than 500 points drop to close around the lowest point of the current calendar year. This sell off was triggered with the fear of fed announcing rate hike for the last time this year.  This had a rub off effect on rest of the Asian peers.  

In last few days, our markets have decoupled from its global peers and today’s price action was the perfect example of it. The banking index went on to surpass its recent swing high with an authority and hence, it’s a matter of time now, we would see even Nifty surpassing its recent swing of 10,941.20. Thus, we continue to remain upbeat and advise using dips to go long with a momentum perspective. 

We reiterate that our markets are likely to witness a ‘Santa Rally’ in coming days. Hence, traders should focus on individual stocks, which are likely to provide better trading opportunities.

—Ashwin Punnen