Markets: PSU Banks, Real Estate And Auto Will Do Well In The Week Ahead

Mumbai, December 22: It was a stellar week for the market where Nifty and Sensex gain more than 1.5 per cent with record closing at a lifetime high. Nifty and Sensex are likely to end 2019 with again around 15 per cent while we underperformed the global market in 2019 because of some domestic headwinds in the middle of the year.

Nifty may touch 13,000 mark

Indian market is in strong bullish momentum and this momentum is likely to continue where Nifty is likely to touch 13,000 kinds of level very soon and this could happen before the budget itself. In near term 12,350 and 12,500 levels are immediate target levels while in the downside 12,150-12,050 area has become a strong base where buy on dip texture will continue in the future.

Santosh Meena, Senior Analyst, TradingBells, said, “If we talk about the last 6 days of 2019 then we may see some consolidation in the headline index with some positive bias as foreign fund flow may remain muted amid holiday mood while broader market outperformance can be seen in the last of week of 2019.”

Metals may continue upside

In terms of sector, metal did well last week on the back of easing trade tension between the US and China and strong economic data from the US. It may continue its upside momentum in the coming week as well. PSU Banks, real estate and auto sector should also do well after the announcement of "Operation Twist" by RBI to lower long term yield.

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, market sentiments the week gone by got boosted after US suspended planned tariff hikes on Chinese imports, scheduled for 15 December and economic data from China showed that industrial output and retail sales growth accelerated in November. “Sentiment also improved following reports that UK Prime Minister Boris Johnson looks to change the law to guarantee the Brexit transition phase is not extended beyond the end of 2020,” Khemka said.

Pre-budget meet to have an effect

With positive global cues, Foreign Institutional Investors (FIIs) have also turned net buyers over past couple of sessions. Going ahead, market would watch out for the Finance Minister’s pre-budget meetings with various industries which began yesterday and the Goods and Services Tax (GST) Council meeting held on Wednesday. On the global front, further clarity on US-China trade deal along with crude oil price and currency movement would drive the markets.

Inflation data influenced markets

Wholesale Price Index (WPI) based inflation advanced to 0.58 per cent in November as against 0.16 per cent in October, driven by an increase in prices of food articles, which weakened the market sentiments. Khemka added that markets were expected to remain under range-bound in the near-term, given its fair valuations and absence of any near term trigger, which could boost.

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Markets: PSU Banks, Real Estate And Auto Will Do Well In The Week Ahead

Nifty may touch 13,000 mark

Metals may continue upside

Pre-budget meet to have an effect

Inflation data influenced markets

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