After hitting record highs last week, the market witnessed consolidation and lost 1 percent on the back of weak global cues.
The BSE Sensex slipped 654.54 points or 1.2 percent to end at 50,889.76 and the Nifty50 shed 181.5 points or 1.2 percent to finish at 14,981.8.
The Sensex breached 51,000 levels and the Nifty50 also broke the 15,000-mark after hitting a fresh high of 52516.76 and 15,431.75, respectively during the week.
"Nifty has critical support at 14,800 and a decisive break may result in further fall else consolidation will continue," said Ajit Mishra, VP - Research, Religare Broking:
We reiterate our cautious stance and suggest focusing more on position management during the corrective phase, he said.
The volatility is likely to remain high across the board. Traders should align their positions accordingly and limit leveraged positions, he added.
Here are 10 key factors that will keep traders busy next week:
The public issue of Heranba Industries will open for bidding on February 23 and close on February 25. The issue will open for a day on February 22 only for anchor investors.
The initial public offering comprises of a fresh issue of Rs 60 crore and an offer for sale of 90,15,000 equity shares by promoters.
Investors can bid for a minimum of 23 equity shares and in multiples of 23 shares thereafter.
RailTel Corporation, the second public issue from the Government of India after IRFC, was subscribed 42.4 times during February 16-18, 2020. The Rs 819-crore initial public offer was a complete offer for sale by the government and a part of the divestment programme set for FY21. The shares will start trading on the bourses with effect from February 26.
Nureca, a B2C company engaged in the business of home healthcare and wellness products, is likely to commence trading in equity shares on February 26. The public issue opened for subscription on February 15. The company will utilise issue proceeds for its incremental working capital requirements.
Foreign institutional investors (FIIs) continued the buying in the fifth straight month buying equities worth Rs 23,874.67 so far in February till. On the contrary, domestic institutional investors (DIIs) sold equities worth 16,638.46 crore.
Last week, foreign institutional investors (FIIs) bought equities worth Rs 4408.26 crore, while domestic institutional investors (DIIs) sold equities worth Rs 6,283.73 crore.
The major key corporate earnings season is out of the way but there are still about 22 companies to release the December quarter scorecard in the coming week. These include Stove Kraft, Sanofi India, SPEL Semiconductor, Elantas Beck India, Aananda Lakshmi Spinning Mills, Huhtamaki India, Indianivesh, Rain Industries, Vesuvius India, ABB Power Products and Systems India.
Last week, rising COVID-19 cases in some parts of the country worried investors. Daily cases of COVID-19 in the country climbed to about 14,000 after nearly 22 days, taking India's tally to 1,09,77,387, while the recoveries surged to 1,06,78,048, according to Union Health Ministry data updated on Saturday.
The number of people who have recuperated from the disease surged to 1,06,78,048 which translates to a national recovery rate of 97.27 percent and the case fatality rate stands at 1.42 percent.
Union Health Minister Dr Harsh Vardhan appealed to the healthcare and frontline workers to come forward and get vaccinated against the novel coronavirus as per schedule.
Greece extended lockdown restrictions to more areas of the country to stem the spread of COVID-19 infections but lifted it in others where infections receded, its deputy civil protection minister said.
Economic Data Points
GDP data for the third quarter is likely to be released on Friday. Expert feels that GDP data for the third quarter to show signs of economic recovery adding positive momentum in the Indian market.
The Nifty50 formed a bearish candle for the fourth consecutive day in a row on Friday pushing the index below 15,000 levels on a closing basis. It breached its 5-Days EMA as well as 13-Days EMA on its way down on the daily charts.
“Weakness appears to be getting more pronounced among the indices as Nifty50 registered a Bearish Engulfing formation on Weekly charts whereas as a strong bearish candle with a wide intraday trading range of 246 points is witnessed on daily charts,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“In this process of 4-day fall, from the highs 15431 levels, daily MACD triggered a sell signal on the charts. The trajectory of this market may remain sell on rallies mode unless it closes above 15150 levels,” he said.
Mohammad further added that a breach of 14898 shall initially drag it down towards 14750 levels. For time being positional traders can either make use of the rally towards 15k or wait for a breach of 14890 levels to create fresh shorts.
Option data suggests a wider trading range in between 14,700 to 15,500 zones while an immediate range between 14,800 to 15,200 zones.
Maximum Put OI is at 14,000 followed by 15,000 strike while maximum Call OI is at 16,000 followed by 15500 strike.
Put writing at 14,800 and 14,900 strikes while Call writing was seen 15,200 then 15,000 strike
"Nifty continues its formation of lower highs - lower lows of the last three trading sessions. Now, till it remains below 15,150 zones, weakness could continue towards next key support of 14,800 and 14,700 zones while on the upside hurdles are seen at 15,250 and 15,400 zones," said Chandan Taparia of Motilal Oswal Financial Services.
Here are key corporate actions taking place in the coming week: (Source: BSE)
Here are key global data points to watch out for next week: