Market Watch: will D-Street continue to break records or is a correction likely?

Welcome to ETMarkets Watch, the show about stocks, market trends and ideas for making money. I’m Nikhil Agarwal and here are the main headlines at this hour.

Sensex, Nifty break new records; broader indices underperform
Ms. Bectors IPO signed up 198 times on the last day
Anil Agarwal observes an Indian divestment plan with a $ 10 billion war chest
Bitcoin rises above $ 23,000 as more Wall Street firms pile up
The Ministry of Defense authorizes the acquisition proposals for a value of 28,000 crore of Rupees

Now let’s take a quick look at what happened on Dalal Street today.

The HDFC twins contributed the most to Sensex’s earnings today. Reliance Industries and other financial stocks were also in demand.

Leveraging on FII investments and positive comments from the US Fed, Sensex climbed more than 220 points to close near 46,900, while Nifty settled close to 13,750. Both indices closed at new all-time highs.

Mrs Bectors Food’s IPO was signed almost 200 times on the last day, following the huge success of Burger King, which finally saw a gain on the stock market. Meanwhile, Antony Waste Handling Cell is coming with his second attempt to raise funds.

To discuss whether this flurry of IPOs will continue to produce hits and whether the exorbitant trading market could correct, we sat down with Vinod Nair, Head of Research at Geojit Financial Services.

Welcome to the show, Mr. Nair

1) Burger King and Mrs Bectors encountered a strong response. Do you think small IPOs are going to have fun?
2) Are you comfortable with current market valuations?
3) How much correction should be healthy for the market at this juncture?

Technically, analysts expect December to trade in a positive bias, while they don’t rule out the possibility of an increase in volatility in January.

We spoke to Rohit Singre, Senior Technical Analyst at LKP Securities, to decode the charts.

Welcome to the Mr Singre show.

1) What does the Nifty chart tell you at this juncture? How far can we go from here?
2) What awaits us at Bank Nifty in the short term?
3) India VIX has been trading around the 19-20 levels for some time, which is relatively high when compared to pre-Covid levels. Do you see that this is a reflection of the nervousness in the market?

Globally, stocks traded in red with the UK, while in green Germany and France. At the end of the Fed meeting, the focus will shift to Brexit negotiations as there are real fears of a no-deal Brexit.

That’s all for now. Check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock tips. Enjoy your evening. Bye Bye!

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