Friday Round Up 06th Dec 2019

The Indian markets saw a sell-off on the last two days of the week following RBI’s unexpected action of pausing rate cuts.
The Nifty has ended at almost the intra day low and a bearish engulfing pattern has been formed.
The RBI’s action and cutting GDP forecast for FY20 and caution on rising inflation could have raised alarms on the Indian macros in the minds of FPIs although the low volumes does not signify extreme nervousness on their part.
Nifty 12115 is proving difficult to be breached on the upside although 11860 is a support. There remain two possibilities. One Nifty breaches 11860 and then 11500, in which case further follow through selling could happen. The other view is that Nifty remains in 11860-12115 band till end Dec and then in the new year an attempt may be made to breach 12115 based on then emerging positive macro
The other global markets have performed better than Indian markets based on US China trade talks developments and expectations. Data coming out of Germany today showed that German industrial output fell unexpectedly in October on a sharp drop in production of capital goods, pointing to persistent weakness in the backbone of the economy that may stabilise in the coming months, the Economy Ministry said on Friday.
Industrial output dropped by 1.7% on the month, confounding expectations for a 0.1% rise, figures released by the Statistics Office showed.

Friday Round Up