Global cues, macro data as well as earnings will be something which investors will watch out for
What a week for Indian markets. The index witnessed a steady rise in the first three days of the week but saw profit taking at higher levels in the last two days that pushed the Sensex below 37,000 and Nifty below 11,000.
However, on weekly basis, both Sensex and Nifty rose 0.2-0.4 percent for the week ended February 8.
Most of the carnage was seen in the small and midcaps that plunged over 2 percent for the week. More than 350 companies on the BSE, mostly in the broader market, hit a 52-week low on February 8.
As many as 21 stocks on the BSE hit an all-time low in the week gone by including Reliance Power, Reliance Communication, Suzlon, Inox, ICICI Securities, Cochin Shipyard, Coal India and Shankara Building.
There's no sign of reversal yet thus most analysts reiterate their cautious view on markets and suggest keeping positions on both sides. In coming days, investors will watch out for global cues, macro data and earnings.
By and large, IT and FMCG pack are maintaining their positive stance and PSU banks and metal are reeling under pressure and may see further fall ahead, suggest experts.
The rupee appreciated by 14 paise on February 8 to close at 71.31 against the US dollar on persistent foreign fund inflows even as the greenback strengthened overseas amid fresh concerns over global growth. This is the fourth successive session of gain for the domestic currency.
On the institutional front, FIIs were net buyers for Rs 843 crore and DIIs were net sellers in Indian markets to the tune of Rs 960 crore, according to provisional data.
As many as 312 companies on the BSE will declare their results for the quarter ended December on February 11 that include Andhra Bank, Astral Poly, CARE Ratings, Corporation Bank, Eicher Motors, India Cements, JBM Auto, KNR Construction, Max India, Motherson Sumi, PI Industries, Repro India, SpiceJet etc. among others.
Eicher Motors: PAT is likely to grow 8 percent YoY to Rs 574 crore
KNR Construction: PAT is likely to fall 48 percent YoY to Rs Rs 33 crore
India Cements: PAT is likely to grow 1.7 percent YoY to Rs 15 crore
(All estimates are from Motilal Oswal)
Nifty formed a bearish candle on the daily charts. Nifty has to cross and hold above 10,985 to witness an up move towards 11,080 then 11,176.
On the downside, a hold below 10,929 could drag the index towards next support at 10,820 then 10,777, suggest experts.
Three levels: 10925, 11041, 11100
Max Call OI: 11000, 11200
Max Put OI: 10700, 10400
Stocks in news:
IDFC, on February 9, reported an 11-fold jump in net profit for the December quarter at Rs 26.28 crore, mainly due to a tax adjustment. The company's standalone net profit stood at Rs 2.40 crore in the quarter ended December 31, 2017, it said in a statement.
Drug maker Lupin, on February 9, said it got two observations from the US drug regulator for its crucial Goa manufacturing site, which is under warning letter.
Tata Steel reported a surge of 53 percent (year on year) in its net profit for the December quarter at Rs 1,751 crore. The company had reported a profit of Rs 1,144 crore during the same quarter of last year.
We spoke to Angel Broking and here’s what they have to recommend:
Wockhardt: Buy| LTP: Rs 415.15| Target: Rs 468| Stop loss: Rs 395.80| Upside: 12 percent
Bajaj Finance: Buy| LTP: Rs 2,702| Target: Rs 2,898| Stop loss: Rs 2,620| Upside: 7 percentDisclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.