Markets have largely performed on a cautious note so far this week ahead of the RBI policy. However, the wait is finally over as the central bank will unveil the monetary policy for December 2022 later today which will play a major role in influencing sentiments in domestic equities. With that being said, the experts have given their intraday picks for 7th December. Yesterday, the market ended in the red with the Sensex falling for the third day in a row. The rupee fell to a one-month low as the forward premium fell to its lowest since 2010. Foreign investors were also net sellers.
on 6th december Sensex It closed at 62,626.36, down 208.24 points or 0.33%. While the Nifty 50 closed at 18,642.75, down 58.30 points or 0.31%. The performance was dragged by IT and metal stocks as they witnessed heavy selling, while banking, consumer durables and healthcare stocks also saw significant decline. In the broader basket, midcap stocks saw sharp profit-booking after their stupendous performance last week. India’s volatility index rose over 2%.
FII sold 635.35 crore in the stock market on Tuesday.
on interbank forex MarketAgainst the US dollar, the rupee closed at a 1-month low of 82.6150 against the previous day’s close of 81.79 per dollar. The USD/INR 1-year forward premium fell to 1.64% – their lowest level since 2010, while their year-to-date decline is around 300 basis points.
RBI has increased the repo rate by at least 190 basis points from May for the current financial year. Right now the repo rate is 5.90%. Instead of a fourth 50 basis point hike in the December policy, expectations are 25-35 basis points.
In addition, the World Bank revised India’s GDP growth forecast for 2022-23 to 6.9% (from 6.5% in October 2022), saying the economy was showing high resilience to global shocks . Fitch, on the other hand, now expects world GDP to grow by 1.4% in 2023, down from 1.7% in September 2022.
Deepak Jasani, Head of Retail Research, HDFC Securities, said, “Nifty may witness some further decline towards 18442-18535 band in the near term. On an upside move, 18696 may offer resistance.”
Here are the intraday picks for December 7:
Manoj Dalmia, Founder and Director, Skilled Equity:
UltraTech Cement: Buy at Rs 7297 with a stop loss of Rs 7276 for a target price of Rs. 7344
Bank of Baroda: Buy on With a stop loss of 176.35 for a target price of 175.25 178.45
Dr. Ravi Singh, Vice President and Head of Research, SHARE India
Petronet LNG: buy at for a target value of 214 with stop loss of 222 211
Ambuja Cement: Buy at for target price of 585 with a stop loss of 595 582
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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