As many as 33 stocks which rose to record highs gave negative returns which include names like Deepak Fertilisers, GSFC, Jindal Stainless, Bata India, Avanti Feeds, Mahanagar Gas etc. among others.
The S&P BSE Sensex slipped 0.2 percent in the month of November but there was plenty of stock specific action as more than 100 stocks hit a fresh record high in the S&P BSE 500 index.
As many as 120 stocks rose to a fresh record high which outperformed the benchmark index by a wide margin. Topping the charts was Minda Industries which rallied 53 percent in the month of November, followed by 8K Miles which gained 46 percent, and Infibeam Corporation rose 33 percent in just one month.
Other stocks while grabbed investors’ attention and rose to record highs include names like Gulf Oil, Rain Industries, Radico Khaitan, Titan Company, Titagarh Wagons, Vakrangee, Tata Global Beverages, Balkrishna Industries, Indian Bank, VIP Industries etc. among others.
Not every stock which rose to a fresh record high in the month of November closed with strong gains. As many as 33 stocks which rose to record highs gave negative returns which include names like Deepak Fertilisers, GSFC, Jindal Stainless, Bata India, Avanti Feeds, Mahanagar Gas etc. among others.
The month of December, in particular, is likely to remain volatile for markets ahead of key events such as US Federal Reserve policy meeting, RBI monetary policy as well as the outcome of state elections.
Traders lighten up positions in the November expiry and rolled fewer long positions. This trend will keep the upside intact at least for the month of December. The crucial resistance level for the index is placed around 10,350 and a breakout from this level could take the index towards 10,409-10,450 levels.
The S&P BSE Sensex is already up 25 percent so far in the year 2017 and even if bears take control of D-Street, we would still close the year with strong gains.
But, the anecdotal evidence suggests that the month of December belong to the bulls. But, this time it will be contingent on the statement made by the central bankers as well as the outcome of state elections.
“Stock market keeps on reacting to newer and newer facts all the time and therefore any seasonality if observed is only a mere a coincidence. A probability of 60 percent is not all dependable to bet,” Jimeet Modi, CEO, Samco Securities told Moneycontrol.
“Global interest and inflation rate scenarios pose a key risk to liquidity in the system. The ability of US Congress to pass the tax cut bill and geopolitical risk emanating from North Korea can cause a spanner in the bull market in the long term,” he said.
But, in the short-term, Modi is of the view that election outcome in Gujarat would be an important test of the political establishment in the centre, and any adverse verdict could slow down the reform process till 2019.
