Overall sentiment remains positive

The market saw profit-booking after the recent gains with Sensex falling below 41,000 and Nifty started the December F&O series on a weak note. The Sensex was down 336.36 points to close at 40,793.81, while the Nifty plunged 95.20 points to 12,056.

The broader markets outperformed with the Nifty Midcap index was flat with a positive bias and Smallcap index gained 0.94 percent.

Yes Bank was the top loser in the Sensex pack, shedding 2.50 per cent, followed by HUL that fell 2.37 per cent, M&M 2.12 per cent, SBI 2.03 per cent, Tata Motors 2.03 per cent and Vedanta 1.97 per cent. On the other hand, Bharti Airtel, HDFC Bank and NTPC ended with gains.

Sectorally, BSE energy, metal, auto, oil and gas, capital goods and FMCG indices fell up to 1.46 per cent.

Next week, Auto stocks would be reacting to their November sales data. Also some of the mid and smaller banks would be in focus as the IPO of Ujjivan Small Finance Bank would open to raise Rs750 crore. While overall market sentiments continue to remain positive, there is some cautiousness as well as profit booking seen at higher levels. Further, weakness in underlying economy as well slower earnings growth leave limited room for upside. However the current momentum can sustain in the near term on the back of strong liquidity flows and positive sentiments.

Technical View
“Technically, Nifty formed a Red body candle on daily chart. While the index concluded the week with gain of 1.19% and formed a green body candle on weekly chart. A positive momentum after the formation of three consecutive Doji candles on weekly chart is a positive sign for the market. Thus, till the time, Nifty holds above 12000 zones, we maintain our positive stance on market for an up move towards 12250 levels,” said Siddhartha Khemka, Head-Retail Res-earch, Motilal Oswal Fin-ancial Services.

The market traded cautiously markets before the Q2 GDP data release. Concern of US-China trade deal have a negative impact on metal stocks. Auto stocks saw profit booking ahead of November monthly data announcement.

Market View
“Profit booking ahead of economic data and selling pressure in Asian peers due to risk of retaliation from China add volatility in the market. The recent rally has lifted the market to supreme valuation which may limit the headroom of key indices to perform well in the short-term. Consequently, investors are likely to shift focus for quality mid & small caps, which are likely to out-perform in the near term,” Vinod Nair, Head of Research at Geojit Financial Services, said.