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    Positive on Axis, ICICI and HDFC Bank ALL, Bajaj Auto and Tata Motors

    Synopsis

    Indices continue to move higher for the fourth consecutive month in a row.

    Tech View: Nifty forms bearish candle as bulls fail to capitalise on breakoutGetty Images
    We anticipate Nifty to register fresh all time high specifically in last 10 trading sessions of December.
    Bhavin Mehta, VP, Derivatives Strategist, Dolat Capital

    Where are we: Indices continue to move higher for the fourth consecutive month in a row. It faces good amount of supply in 12000-12200 range. Recent recovery in Nifty was seen after the corporate tax break announcement, that saw it moving from 10700 to current level of 12100. Many other smaller steps taken to revive the economy conditions combined with better than expected result preview and positive news-flow on global front have ensure positive sentiments.

    What is in store: Participants will be looking at both global (trade war settlement) and domestic (GST and booster steps) for larger trend. Two sectors where we believe institutional investors are the most focussed now are private banks as well as FMCG constituents. Underlying of both these sectors continue to witness good amount of accumulation as well as long buildup. Also, we have seen some fantastic pullback coming in auto sector in past three months especially the two-wheelers where one can anticipate the upmove to continue.

    What should traders do:
    We anticipate Nifty to register fresh all time high specifically in last 10 trading sessions of December. As for sector specific trades, our view continues to remain positive for private banks (Axis, ICICI and HDFC Bank); auto (Ashok Leyland, Bajaj Auto and Tata Motors). Contra traders can also look at buying into select stocks from metals (Tata Steel), PSUs (SBI, SAIL and PFC). On other hand, we are concerned with NBFCs as of now. Participants may also look at stockbased strategy such as Motherson (Call Spreads), Titan, Jubilant Food and TataMotors (Long Strangle), and L&T, M&M (Short Strangle).



    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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