Market Watch: Will D-Street keep making record highs or a correction is likely?


Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Nikhil Agarwal and here are the top headlines at this hour.

Sensex, Nifty climb to fresh record highs; broader indices underperform
Mrs Bectors IPO subscribed 198 times on last day
Anil Agarwal eyes Indian divestment plan with $10 bn war chest
Bitcoin soars above $23,000 as more Wall Street firms pile in
Defence Ministry clears acquisition proposals worth Rs 28,000 crore

Now let us take a quick glance at what happened on the Dalal Street today.

HDFC twins contributed the most to Sensex’s gains today. Reliance Industries and other financials were also in demand.

Riding on FII investment and positive commentary from the US Fed, Sensex climbed over 220 points to close near 46,900, while Nifty settled near 13,750. Both indices closed at fresh record highs.

The IPO of Mrs Bectors Food was subscribed nearly 200 times on the final day, following the grand success of Burger King, which finally saw a profit booking on the bourses. Meanwhile, Antony Waste Handling Cell is coming with its second attempt to raise money.

In order to discuss if this flurry of IPOs will continue to script success, and if the market which is trading at frothy valuations may correct, we caught up with Vinod Nair, Head of Research at Geojit Financial Services.

Welcome to the show, Mr Nair

1) Burger King and Mrs Bectors have seen strong response. Do you think small IPOs are in for a good time?
2) Are you comfortable with current market valuations?
3) How much correction should be healthy for the market at this juncture?

Technically, analysts expect December to trade with a positive bias while they do not rule out the possibility of a rise in volatility in January.

We spoke to Rohit Singre, Senior Technical Analyst at LKP Securities, to decode the charts.

Welcome to the show Mr Singre.

1) What is the Nifty chart telling you at this juncture? How far can we go from here?
2) What lies ahead for Bank Nifty in the near term?
3) India VIX has been trading around 19-20 levels for a while now, which is relatively elevated if we compare to pre-Covid levels. Do you see it is a reflection of nervousness in the market?

Globally, stocks traded mixed with the UK in the red while Germany and France in the green. As the Fed meeting is over, focus will shift to Brexit negotiations as there are real fears of a no-deal Brexit.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!





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