Early on D-Street | Consolidation may continue; 12,000-12,100 key resistance range for Nifty

Episode 1928,   Nov 22, 2019, 01:30 AM

Nifty traded lackluster and settled marginally lower, taking a breather after the recent up move. It opened flat and remained range-bound thereafter.

Sensex settled 76 points, or 0.19 percent lower at 40,575.17, while Nifty closed at 11,968.40, with a loss of 31 points or 0.26 percent.

"Concerns over delay in the US-China trade deal and FED minutes fueled negativity in markets across the globe. While domestic blue chips are finding it difficult to maintain positivity due to excessive valuation," said Vinod Nair, Head of Research, Geojit Financial Services.

He said the focus will be on next week’s Q2GDP data which is expected to be below the 5 percent reported in Q1. It is probable that the forecasted growth of 6.1 percent for FY20 is likely to be downgraded further. At the same time, Nifty50 is trading at a year forward price-earnings ratio (P/E) of 19 times and 26 times on 12 months trailing basis which does not provide much leeway to perform in the short-term.

The rupee pared initial losses and settled 5 paise up at 71.76 against the US currency on November 21 amid softening crude oil prices and weakening of the greenback vis-a-vis other currencies overseas.