Early on D-Street: Momentum slowly dwindling down; above 11,950 levels Nifty may head to life time highs

November 1 turned out to be a day of some more consolidation on the D-Street. However, benchmark indices managed to close above crucial support levels for the week.

The S&P BSE Sensex rallied 2.83 percent while the Nifty50 closed with gains of 2.65 percent for the week that ended on November 1.

Investors’ wealth in terms of average market capitalisation of BSE-listed companies rose by Rs 4.78 lakh crore to Rs 154.09 lakh crore recorded on November 1 from Rs 149.31 lakh crore registered on October 25.

Muted auto sales data, as well as GST data, along with disappointing core sector data weighed on sentiment, and investors preferred to book profits at higher levels. But, the momentum is likely to continue in the near-term, and investors should use the dip to buy.

Goods and Services Tax (GST) collections for the month of October 2019 stood at Rs 95,380 crore, down 5.29 percent, Ministry of Finance data showed.

The rollover figures for Nifty stand at 84.09 percent for the November series which is higher if we compare it with the 6-month average of 74.87 percent. Rollovers for BankNifty stand at 63.59 percent against a six-month average of 73.22 percent.

Higher rollovers were witnessed in specific sectors compared to the 6-month average for a couple of sectors: Auto 95.79 percent (vs 91.95 percent), banking & finance 94.82 percent vs (91.79 percent), consumer products 95.16 percent (vs 92.65 percent). So these sectors could be in focus.