Market is likely to open flat

Mumbai: Markets subdued on back of weak global cues and fear of another lockdown which can again derail the economy which is started showing green shoot and early recovery.

However, broader markets outperformed the indices many small and mid cap stocks regained momentum to hit 20 per cent upper circuit. Metal stock rallied on news of increase in steel price by another Rs 1000/2000 per ton. PSU stock like GAIL ONGC rallied as Oil Minister announced investment of Rs 10,000 crore in the next three years in setting up of LNG stations, a fuel that promises to revolutionary long-haul transport with reduced cost and lesser emissions, Oil Minister Dharmendra Pradhan.

The Monetary Policy Committee (MPC) of RBI began its three-day deliberation on Wednesday, RBI will announce its monetary policy review on December 4. Markets eye set for outcome of RBI Monetary Policy Committee meeting on 4th Dec. However, Sensex in consolidation mode after opening higher at 44,729 started downward journey but took support near 44,169 levels our first resistance mark and gradually recovered from there to almost close near neutral line losing around 37 points at 44,618 mark.

"Sensex, tomorrow may witness flat to positive opening in early trade, first resistance for Sensex near 44700-750 levels and further may resume uptrend only if sustain above 44,850 levels for upward trend till 45200 levels with resistance at 44,950 & 45030 levels," says Nilesh Karani, VP, Magnum. On the flipside Sensex if trades below 44,540 level would witness selling with immediate support near 44320-50 levels & next 44050-44100 mark, sustaining below 44K the next level to watch should be 43840-60 level & next 43700-740 levels, Cautious approach is recommended as Markets in overbought Zone, he added.

Stock picks

Top Gainers for the day are: ONGC +4.11%, ASIANPAINT (+3.74), TITAN (+3.48), TATASTEEL (+3.19%) and BAJAJ-AUTO (+2.86%).

We recommend going long on following stocks:

1. ZEEL above 201 with a target of 212.70 and stop loss of 189.4. The price has support of 8 AND 40 EMA.

2. CESC above 610 with a target of 630.70 and stop loss of 588.40. The price has bounced from its support level and there is a recent cross over between short term moving averages of 8 & 40 EMA that can boost the price movement in short-term perspective.

3. AARTIIND above 1185 with a target of 1230.60 and stop loss of 1139.40. It is trading in an upward moving channel.

4. TORNTPHARM above 2700 with a target of 2792.60 and stop loss of 2607.40. It has a support of 8 and 40 EMA. Also, RSI 14-period signals positive outlook.

5. BPCL above 390 with a target of 785 and stop loss of 374. The price level has bounced from support of 40 EMA.

(Source-CapitalVia)