Nifty expected to consolidate, experts pick Tata Motors, Zomato

Nifty Consolidation
Nifty Consolidation

The Indian market is predicted to consolidate today, influenced by global trends. The Nifty index has shown gains recently, closing at 24,775. Experts predict a trading range between 24,200 to 25,200 for Nifty.

Analysts have shared their top stock picks for today, with recommendations primarily focused on short-term trading horizons.

The top nine trading ideas include InterGlobe Aviation, REC, Zomato, Oberoi Realty, Tata Power, IRFC, Tata Motors, Kotak Mahindra Bank, and CESC. Chandan Taparia, Head of Equity Derivatives & Technicals at MOFSL, highlighted Tata Motors and Zomato among others as good short-term buys.

Kunal Bothra, a market expert, also provided his analysis aligning with the picks above. Nooresh Merani, an independent technical analyst, recommended Oberoi Realty, citing strong technical indicators. The overarching sentiment in the market today is to watch for consolidation influenced by global market trends.

Investors and traders are advised to stick to the recommended trading range for Nifty and to carefully follow the provided target and stop-loss levels for the stocks listed. Most markets in the Asia-Pacific region were trading lower on Monday, December 9, as risk sentiment remained dampened due to political tension in South Korea. The Kospi and S&P ASX 200 were trading down by 1.37% and 0.27%, respectively.

In the U.S., the Dow Jones Industrial Average ended 0.28% down on Friday, while the S&P 500 rose by 0.25%, and the Nasdaq Composite increased by 0.81%. The Brent crude was up by 0.07% at $71.70 a barrel as of 6:39 a.m. The GIFT Nifty was trading flat at 24,725.00 as of 06:49 a.m. The NSE Nifty 50 and BSE Sensex ended Friday’s session with minor losses, dragged down by HDFC Bank Ltd. and Reliance Industries Ltd.

The Nifty closed 30.62 points or 0.12% down at 24,677.80, and the Sensex ended 56.74 points or 0.07% down at 81,709.12. The indices fell sharply after the Reserve Bank of India kept the repo rate at 6.5% and maintained a neutral stance.

Nifty market outlook and stock picks

The central bank reduced the gross domestic product forecast for the current financial year while increasing the projection for inflation. Despite the losses on Friday, the Nifty posted its best weekly gains since June 7, rising 2.27% in the week ended December 6. The Sensex gained 2.39% during the same period.

Overseas investors turned net sellers of Indian equities on Friday after three straight days of buying, while domestic institutional investors turned net buyers after three consecutive days of selling. Foreign portfolio investors sold stocks worth Rs 1,830.3 crore, the highest amount so far this month, while domestic institutional investors bought stocks worth Rs 1,659.1 crore, according to provisional NSE data. Indian markets are poised for a steady start on December 9, following a strong performance last week where the Nifty 50 rose by 2.3% — its best showing since June.

This performance was buoyed by the Reserve Bank of India’s decision to cut the cash reserve ratio, which briefly improved bank liquidity and supported the rally. Following last week’s gains, Indian markets are taking a pause as investors await key data from both India and the US, which are pivotal for shaping monetary policy. The Reserve Bank of India’s cash reserve ratio cut has temporarily boosted liquidity.

Meanwhile, in the US, job data has met expectations, stirring speculation about a possible Federal Reserve rate cut in December. Together with the upcoming US price index report, these factors could have significant implications for foreign investment. Uncertainty in economic indicators and political developments is causing Indian and other Asian markets to open steadily.

Additionally, dips in other Asian markets, due to South Korean geopolitical tensions, emphasize the importance of monitoring regional trends and global economic data. Indian corporate maneuvers, such as Paytm selling its PayPay stake to SoftBank for $250 million and Ceat acquiring Camso from Michelin, reflect strategic moves both domestically and internationally. Coupled with Larsen & Toubro’s tribunal win on customs demands, these actions underline regulatory shifts and hint at potential changes in market dynamics.

These economic narratives are interconnected globally, highlighting the constant interplay between domestic actions and their international implications. Investors are advised to keep a close watch on forthcoming economic data, policy decisions, and corporate maneuvers to navigate the market effectively.

Harper Johnson

Harper Johnson stands at the forefront of digital marketing, where she dissects and interprets the impact of online advertising trends, social media dynamics, and search engine algorithms on consumer behavior.

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