Traders’ Diary: Nifty has strong support at 11,900
Sensex dropped 153 points, dragged by losses in Reliance Industries, TCS, HDFC Bank and HUL amid tepid global cues and rising crude oil prices.
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What may guide your market next week
Nifty has witnessed a smart pullback from its 100-DMA, but is facing resistance at its 50-DMA of 12,140. A sustained move above the 12,140 level can trigger a short-covering rally towards the next important resistance zone at 12,250-12,300. On the downside, the 20-DMA at 12,040 remains the immediate support below which the 11,950-11,900 zone will be a critical support
- Santosh Meena, TradingBells
Momentum shall pick up on the upside on any strong close above the 12,150 level. In such a scenario, Nifty may initially head towards its interim top at 12,246 level, whereas weakness shall re-emerge on any close below the 12,040 level
- Mazhar Mohammad, Chartviewindia.in
At its current juncture, Nifty’s positive implication of a Bullish Island Reversal pattern is still intact. As long as, Nifty holds above 12,030 level, we would maintain our positive stance for a bounce towards 12,200 and then 12,300 levels. On the flip side, major support is placed at 12,030 and then 11,900 levels
Despite a lackluster week, we saw an appreciation in USD/INR spot, tracking some uncertainty over coronavirus along with the sharp surge in dollar index and crude oil prices. There has been some improvement in the risk appetite as China has been infusing stimulus to offset the economic fallout of the epidemic. However, uncertainty may continue until the virus gets completely eradicated. Next week, we expect USD/INR to trade in 71.40-71.85 range, while Feb contracts to expire around 71.35-71.55 zone
- Rahul Gupta, Head of Research- Currency, Emkay Global
Nifty witnessed consolidation moves and held the bullish support level of 11,900. The momentum oscillators indicate exhaustion, and hints at rangebound moves until price breaks away resistance at 12,200 level. Nifty has important weekly support at 11,900. It needs a deceive break above the 12,200 level for a trend reversal. One should take a bullish view on a decisive close above 12, 200 for a target of 12,450-12,550. Support is at 12,000-11,900 and resistance is in 12,200-12,350
Amit Shah, Technical Research Analyst with Indiabulls Ventures
Sensex remained volatile and ended in the negative during the truncated week. Global markets were mixed with the US and Chinese markets trading in the negative for the week as we speak. With the coronavirus situation in China stabilising, commodity prices have started to recover. Thus, crude price has started to inch up and is now close to $60 per barrel. With the earnings season coming to an end, the focus will shift to global and domestic macro developments. There are no major political events in the near term. While the interest level is high for smallcap and midcap stocks, investors are still trying to assess the impact of procurements from China
Market traded lackluster and settled marginally lower amid mixed cues. After a flat start, Nifty managed to inch higher, but selling pressure in the latter half not only trimmed the gains, but also pushed the index in the red. The recent move shows indecision among the participants and it will only subside with clarity over coronavirus. Meanwhile, volatile swings would continue across the board. We advise focussing on stock selection and risk management
- Ajit Mishra, VP - Research, Religare Broking
Pandemic issue in China is under control, implying that the impact to the economy won’t be a big as expected initially. Investors will focus on the Trump-Modi meeting due next week, though no trade deal is expected. Commentary towards opening the trade in the future will be keenly watched
- Vinod Nair, Head of Research, Geojit Financial Services
CLOSING BELL: Late selloff drags Sensex 153 pts lower, Nifty below 12,100; Max Fin rallies 9%, Hathway Cable plunges 10%
Hathway Cable, Oil India, Sobha among top 10 NSE losers
Price as on 20 Feb, 2020 03:15 PM, Click on company names for their live prices.
Passenger vehicle retail sales fall 5 pc in January: FADA
Automobile dealers' body FADA on Thursday said passenger vehicle (PV) retail sales in January declined 4.61 per cent to 2,90,879 units as compared to same month last year, hit by tepid response by end customers.
According to Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,223 out of the 1,432 regional transport offices (RTOs), PV sales stood at 3,04,929 units in January 2019.
Fitch removes Bharti Airtel rating from ‘watch negative’
Fitch on Thursday removed Bharti Airtel from ‘watch negative’ and affirmed the telecom’s long-term foreign currency issuer default rating at ‘BBB-’ with a stable outlook. “The stable outlook reflects our view that an equity injection of $2 billion in January and Ebitda growth for the financial year ending March 2020 (FY20) and FY21 will be more than sufficient to offset the increase in debt to pay regulatory dues of up to $4.9 billion, which stem from a dispute over adjusted gross revenue (AGR),” the rating agency said.
Rating agency ICRA has revised cut and polished diamond industry outlook from stable to negative, in view of the ongoing lockdown in parts of China and Hong Kong (C&HK) region. China accounts for 14% of polished diamond consumption while a larger proportion (35%) of exports from India is currently routed via Hong Kong. The weak demand conditions in key markets is also expected to impact the domestic cut and polished diamond industry in a major way.
Discount broking firm Zerodha has applied for an asset management company (AMC) license, the company’s founder and CEO Nithin Kamath said on Thursday.
Voda Idea makes Rs 1,000 crore payment to DoT towards statutory dues: PTI
Australia, NZ shares close at record highs
Australian shares ended Thursday at a record peak as China ramped up support for its virus-hit economy, while domestic employment and wage data suggested further monetary easing could be on the cards, Reuters reported.
The S&P/ASX 200 index closed 0.3 per cent higher at 7,162.5 but fell off from the session high.
IB Housing, Max Fin, Trident top 10 gainers on NSE
Price as on 20 Feb, 2020 01:06 PM, Click on company names for their live prices.
Shares of some of the API-focused pharma companies are making merry on Dalal Street, as the coronavirus epidemic has hit supplies of some critical active salts from China to drugmakers across the world.
Shares of some of the pharma firms have jumped up to 110 per cent, as market participants see them as possible candidates to fill the void.
On a broader level, things are not looking too good in terms of earnings. When you talk to banks, the indication you get is that the slippages could continue to be on the higher side. The broader economy, in terms of the data point, is not looking great either.
- Hemang Jani, Senior Vice-President, Sharekhan
65 stocks hit 52-week lows on NSE
Around 65 stocks fell to touch their 52-week lows on NSE in Thursday's session.
Among the stocks that touched their 52-week lows were Sundaram Finance HoldingsNSE 0.57 %, Sterling And Wilson Solar, Sobha, Excel Industries and Shemaroo Entertainment.
SBI's credit card business IPO to open on March 2
Asian stocks slip as virus' global impact puts markets on edge
Asian stocks eased and currency markets were skittish on Thursday, as virus cases rose in South Korea and Japan even as China added more stimulus via a rate cut to support its economy, Reuters reported.
IRCTC zooms to new record high, stock more than double for YTD
Price as on 20 Feb, 2020 11:33 AM, Click on company names for their live prices.
Indiabulls group stocks rally up to 16%
Price as on 20 Feb, 2020 11:21 AM, Click on company names for their live prices.
Just In | MCA probe finds no major irregularities in Indiabulls' deals: Agencies
BofA on Aurobindo Pharma
BofA Securities maintains 'buy' rating on Aurobindo Pharma with a target price of Rs 634 per share. Unit-4 VAI status gives a sigh of relief for the company, it said, adding that the US FDA compliance score improves with this development.
JP Morgan on Ashok Leyland
JP Morgan maintains 'neutral' rating on Ashok Leyland with a target price of Rs 75 per share. The company's Q3 disappointed on margin miss. The volume growth recovery remains elusive, the brokerage said. The scrappage policy is a key monitorable, it added.
Macquarie on Bandhan Bank
Macquarie maintains 'underperform' rating on Bandhan Bank with a target price of Rs 470 per share. Macquarie believes that too much is going on both fundamental level & stake-sale level in the bank and therefore, this is not the right time to buy the stock given the uncertainties.
JP Morgan on Indian Hotels
JP Morgan maintains 'overweight' rating on Indian Hotels with a target price of Rs 175 per share. The brokerage said Q3 sees RevPAR recovery across the industry. Mumbai, Delhi, Bangalore and Hyderabad all showed good results.
CLSA on Financials
Banks’ credit quality wait gets longer, CLSA said. The recoveries from NCLT aided Q3 earnings. PSU banks’ performance highlights the consolidation phase as banks prepare for life post-mergers.
Sterlite Technologies shares jump over 7%
Shares of Sterlite Technologies surged over 7 per cent on Thursday after the company received an order worth Rs 1,500 crore.
The stock opened at Rs 111 and gained 7.2 per cent to touch a high of Rs 119 on the BSE. Later, it was trading at Rs 115.65 per unit, up 4.19 per cent.
On the NSE, the scrip rose as much as 6.97 per cent to Rs 118.80. It was trading 3.96 per cent higher at Rs 115.45.
Key risks for earnings
Cautious outlook of corporates on demand environment
Operating leverage will not impact earnings favourably anytime soon as capacity utilisation is low at ~70% and observed in terms of muted revenue growth
COVID-19 could negatively impact the story of lower raw material cost due to disruption in supply chains in China although on the flip side it could favourably impact through lower oil prices.
Private capex cycle and industry credit cycle continues to remain weak (Source: I-Sec)
Suzlon surges 10% amid reports of SBI approving restructuring proposal
Shares of Suzlon hit 10 per cent upper circuit limit in Thursday’s session on reports that SBINSE 1.00 % has agreed to proceed with a restructuring proposal by the wind power firm. Suzlon’s debt of Rs 12,700 crore will be converted into sustainable and unsustainable debt and will be repaid over 20 years, The Mint reported.
Shares of Vodafone Idea extended their rally to the second straight session on Thursday after ET on Wednesday reported that the government is unlikely to invoke the company’s bank guarantees for now even as the officials of the telecom and finance ministries met Cabinet secretary Rajiv Gauba to discuss ways to ensure that the sector retains three private players. After rallying over 38 per cent on Wednesday, the scrip climbed another 12 per cent to Rs 4.71 in morning trade today. Overall, the scrip has rallied more than 50 per cent over two days against the close of Rs 3.03 on Tuesday.
Max Financial jumps 11% as Axis Bank looks to buy 20% stake in Max Life
Shares of Max Financial Services jumped 11 per cent in Thursday’s trade after ET quoting sources said India’s fourth-largest private sector lender Axis Bank is set to acquire more than 20 per cent in Max Life Insurance through fresh issue of equity. Max Financial is the holding company of Max Life Insurance.
Vodafone Idea, YES Bank, Tata Motors most active stocks on NSE
Price as on 20 Feb, 2020 09:39 AM, Click on company names for their live prices.
Today, USDINR pair is expected to quote in the range of 71.20 and 71.80
- Motilal Oswal Financial Services
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OPENING BELL: Sensex down 100 points, Nifty below 12,100; Suzlon, JP Associates jump 10% each
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange traded 127.50 points, or 1.06 per cent, higher at 12,146, indicating a positive start for Dalal Street.
Tech view: Nifty hurdle at 12,170
NSE Nifty on Wednesday snapped a four-day losing streak and formed a bullish candle on the daily chart. The follow-up buying witnessed after Tuesday’s Hammer candle is seen as a positive sign. The index negated lower high and lower low formations of the past three sessions and closed above its 20-day moving average. The immediate hurdle is in the 12,170-12,180 zone.
Asian stocks rise on fall in virus cases
Asian stocks edged up on Thursday, supported by a fall in coronavirus cases and expectations of more Chinese stimulus to offset the economic impact of the epidemic, while the Japanese yen nursed heavy losses after suffering its steepest drop in six months. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1 per cent. Buoyed by the cheaper yen, Japan's Nikkei rallied 1.5 per cent. Markets in Australia and New Zealand minted record highs.
US stocks end at record highs
Fears subsided about the economic damage likely to result from the new coronavirus outbreak in China, with the Nasdaq and S&P500 index hitting all-time highs, AFP reported. While previous trading sessions had seen investors hold fire on virus fears, there was no sign of that on Wednesday, and the benchmark Dow Jones Industrial Average gained 0.4 percent to close at 29,348.03. The Nasdaq jumped 0.9 per cent to 9,817.18 and the broad-based S&P500 index rose 0.5 per cent to 3,386.15 -- both record-setting finishes.
China reports drop in new confirmed cases
China reported a dramatic drop in new cases in the province at the heart of the coronavirus outbreak, while scientists reported the new virus may spread even more easily than previously believed. China’s central Hubei province had 349 new confirmed cases on Wednesday, down from 1,693 a day earlier and lowest since January 25.
Oil prices rise on supply worries
Oil prices rose nearly 1 per cent on Thursday, extending big gains from a day earlier, as the market worried about crude supply disruptions and demand concerns were cushioned after a sharp drop in new coronavirus cases at the epicentre of the outbreak. Brent crude futures rose 45 cents, or 0.8 per cent, to $59.57 a barrel.
China cuts benchmark lending rate
China cut the benchmark lending rate on Thursday, as widely expected, as the authorities move to lower financing costs for businesses and support an economy hit by a fast-spreading coronavirus epidemic. The one-year loan prime rate (LPR) was lowered by 10 basis points to 4.05 per cent from 4.15 per cent at the previous monthly fixing. The five-year LPR CNYLPR5Y=CFXS was lowered by 5 basis points to 4.75 per cent from 4.80 per cent.
DIIs buy Rs 590 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 190.66 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 590 crore, data suggests.
Sensex on Wednesday
Equity indices clawed back lost ground on Wednesday after a four-session falling spree as investors took heart from a decline in new coronavirus cases in China and the Indian government's assurance on tackling the economic impact from the epidemic. The BSE barometer settled at 41,323, clocking a gain of 428.62 points or 1.05 per cent. Likewise, the NSE gauge Nifty shot up 133.40 points or 1.11 per cent to close at 12,125.90.
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