Taking Stock: Nifty slips below 12,200 weighed down by macro data, Coronavirus fears
Indian market consolidated in a narrow range on February 13 weighed down by weak macro cues on the domestic front as well as escalating fears with respect to Coronavirus.
On the global front, a sharp rise in the number of coronavirus deaths and infections unnerved world markets on Thursday. On the domestic front, CPI inflation hitting 68-month high and contraction in December industrial output will put rate cuts by the Reserve Bank of India (RBI) on hold.
“Spike in new coronavirus cases reported across the globe and rise in inflation level for January held markets flat as investors awaited for more cues,” Vinod Nair- Head of Research- Geojit Financial Services told Moneycontrol.
“Consumer price inflation indicated a prolonged pause in the interest rate from RBI as rise in core inflation from 3.5% -4.2% came as a surprise which is expected to impact rate-sensitive stocks,” he said.
The S&P BSE Sensex dropped over 100 points while the Nifty50 slipped below 12200 levels.
Let’s look at the final tally on D-Street – the S&P BSE Sensex was down 106 points to 41,459 while the Nifty50 fell 26 points to 12,174 on Thursday.
Sectorally, the action was seen in healthcare, consumer durable, IT, and FMCG indices while profit booking was seen in Banks, Oil & Gas, Metals, and Realty indices. Nifty Bank 262 points or 0.8 percent to close at 31,230.
Broader markets outperformed as the S&P BSE Midcap index closed flat while the S&P BSE Smallcap index was up 0.07 percent.
Top Nifty gainers: SBI, Titan Company, Dr Reddy’s Laboratories, and Yes Bank
Top Nifty losers: Kotak Bank, Tata Steel, ICICI Bank, IndusInd Bank
Stocks & Sectors:
Sectorally, the S&P BSE Healthcare index was up 1.06 percent, followed by the S&P BSE Consumer Durable that gained 0.95 percent, and the S&P BSE IT index was up 0.88 percent.
Profit taking was seen in Bankex which fell 0.94 percent, followed by the S&P BSE Oil & Gas that was down 0.64 percent, and the S&P BSE Metal index fell 0.62 percent.
Volume spike of 100-900 percent was seen in Ashok Leyland, NMDC, Titan, Dr. Reddy’s Laboratories, GMR Infra, Torrent Pharma, and Torrent Power.
Long Buildup was seen in stocks like Torrent Power, Torrent Pharma, Dr. Reddy’s, Shriram Transport
Short Buildup was seen in stocks like IGL, IndusInd Bank, NMDC, Ashok Leyland
More than 100 stocks on the BSE hit their fresh 52-week high which includes names like GSK Consumer, Sanofi India, Hawkins Cookers, Bajaj Finance, Pfizer, Dr. Redd’s Laboratories, Avenue Supermarts, HUL, and Torrent Pharma.
Stocks in news:
Shares of Yes Bank surged 6 percent a day after the company said it had received non-binding expressions of interest from several prominent investors.
Shares of D-Mart operator Avenue Supermarts gained 2 percent, and also their fresh 52-week high after a media report indicated that offer for sale issue is likely to open later this week.
RSWM share price locked at 20 percent upper circuit on February 13 after the company turned profitable in the quarter ended December 2019.
IRCTC share price rose more than 11 percent to touch a fresh 52-week high of Rs 1,609.30 as company registered a healthy 179.66 percent (or 2.8-fold) year-on-year growth in Q3FY20 profit at Rs 205.8 crore, up from Rs 73.59 crore in the same period last year.
Vakrangee share price rose 4 percent after company’s consolidated Q3FY20 net profit jumped 478 percent at Rs 21.4 crore including one-time gain of Rs 2.9 crore.
Nifty formed a bearish candle on the daily charts which resembles a Hanging Man kind of pattern
The Nifty50 closed above its 50-DMA placed at 12,126
A close below 50-DMA could take Nifty towards 11990 levels. Contrary to this, a strong close above 12231 levels shall initially take the indices towards 12266 and thereafter a slightly bigger target in the zone of 12350 – 12400 can’t be ruled out.
Intraday traders can consider long position if Nifty sustains above 12232 levels for more than 30 minutes and look for a target of 12290, suggest experts.
India VIX fell down by 1.84% at 13.37 levels. Volatility is cooling off from last two weeks which is supporting Bulls and buy on decline strategy in the market.
Three levels: 12139, 12226, 12350
Max Call OI: 12500, 12400
Max Put OI: 12000, 11800
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