After The Bell: Fresh record highs, here’s what investors should do on Thursday

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The bulls controlled the D-Street for the seventh day in a row pushing benchmark indices to fresh record highs on December 9, as the S&P BSE Sensex crossed 46,000 for the first time to hit 46,164 and the Nifty50 touched 13,548.

At the end of the day, Sensex rallied 494 points to 46,103, while the Nifty50 rose 136 points to close at 13,529.

Investors’ wealth has grown by more than Rs 1 lakh crore on the BSE and more than Rs 8 lakh crore in December so far.

The broader markets underperformed the benchmarks. The S&P BSE midcap index rose 0.4 percent, while the smallcap index gained 0.49 percent.

Top Nifty gainers included IOC, Asian Paints, and UPL. UltraTech Cement, Shree Cements and Hindalco were among the biggest losers.

Stocks & sectors

The BSE IT, bank and realty indices rose a percent each.

A volume spike of more than 100 percent was seen in Siemens, GMR Infra, and BEL.

Long buildup was seen in BEL, Siemens, Apollo Hospitals, while short buildup was seen in PNB, ACC and UltraTech Cement.

Over 250 stocks, including DHFL, Hatsun Agro and Mastek, hit a 52-week high on the BSE.

Here is what experts think that investors should do on December 10:

Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited

The Nifty formed a bullish candle on the daily scale and witnessed strong buying momentum for the most part of the session to close with gains of 135 points.

It is forming higher highs-higher lows for the last eight trading sessions and supports are gradually shifting higher. The index has gained more than 550 points in nine trading sessions.

The Nifty has to hold above 13,350 to witness an up move towards 13,650 then 13,750, while on the downside, supports are seen at 13,400- 13,300 zone.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.

The Nifty opened the gap up and built upon the gains as the day progressed, with the index witnessing a seventh straight positive session. The daily Bollinger Bands have started expanding and the upper Bollinger Band is favourable for the trending move.

So, the index is expected to stay on an upward trajectory. The Nifty is inching towards its short-term target of 13,700.

The price action over the last few sessions shows that on minor degree dips, the 20-hour moving average has been acting as a cushion. The average is near 134,00 and  is likely to continue with its role as a near-term support.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited

The market continues to witness strength and stayed above the nearest support level of 13,480.

While sustaining above 13,480 is the key from a short-term perspective, our research suggests, staying above this level will increase the chances of a movement to 13,630.

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

The Nifty continues to scale new highs and has gained nearly 2 percent in the previous week. We continue to believe in the positive undertone of the markets over the medium term. For the short term, there is a possibility of consolidation or correction.

Immediate support is seen at 13,100, with buying on dips advisable for the near term. IT stocks look attractive at current levels, while metals and banking should be accumulated only on meaningful corrections.

Ajit Mishra, VP-Research, Religare Broking Ltd

Markets are largely mirroring global cues but the benchmark looks slightly overbought. Consolidation in the near term cannot be ruled out and it would be healthy for markets.

We recommend booking partial profit in the existing trades and keep trailing stop losses on every rise. For fresh buying, investors should maintain extra caution on the selection of stocks and maintain a buy-on- dips approach