Moneycontrol
Last Updated : Feb 28, 2019 06:05 PM IST | Source: Moneycontrol.com

Evening Walk Down D-Street: Nifty closes lower in Feb series; Here’s why ‘HRITHIK’ stocks are losing mojo

Options band signifies a broader trading range of the March series in between 10585 to 11118 zones and requires a range breakout to start the next leg of the rally, suggest experts.

Kshitij Anand @kshanand

What started off as a roaring Thursday ended up as a volatile one as both Sensex and Nifty shed gains and closed below their respective support levels. The S&P BSE Sensex gave up 36,000 while the Nifty50 closed below 10800 towards the close of the trade.

The Nifty50 index closed 0.35 percent lower in February series with rollovers seen at 58 percent (provisional) at 4 PM. The Nifty Future 3-month average rollover stands at 68 percent, data showed.

The good news is that foreign institutional investors (FII’s) net cash flow remained positive for February which was negative 7 out of last 12 months, but Indo-Pak tension is likely to keep the market volatile in March series as well.

Indian market started the day on a positive note despite negative global cues but shed most of its gains in the last hour of the trading sessions.

The final tally on D-Street – the S&P BSE Sensex closed 37.99 points lower at 35,867 while the Nifty50 ended at 10,792, down 14 points.

Asian markets remained under pressure as a dent in the recent optimism between US-Sino relations, talks between Trump-Kim at the Vietnam summit ended abruptly with no agreement along with domestic tensions with Pakistan weighed on the sentiment of investors.

At the same time, we are also looking at the resilience of Indian markets which is a positive sign. But, one big trend which is emerging is that interest is slowly moving out of ‘HRITHIK’ stocks which stands for HDFC, RIL, Infosys, TCS, HUL IndusInd Bank, and Kotak Mahindra Bank, suggest experts.

“There is a clear shift from ‘HRITHIK’ stocks ti names where we have seen massive destruction of up to 40-50 percent within the large-cap basket which include names like Ashok Leyland, BEL, LIC Housing Finance or Motherson Sumi. We are seeing meaningful recovery coming in these stocks,” Ashish Chaturmohta, Head of Technical and Derivatives at Sanctum Wealth Management told Moneycontrol.

“It looks like the trend is slowly shifting towards Nifty Junior or Nifty Next 50. If Nifty has to witness a breakout then we need contribution from RIL, HDFC twins and IT. But, the trend is slowly shifting to non-Nifty names where investors now have the option to create alpha,” he said.

India VIX fell down by 3.29 percent at 18.27 levels. VIX has to cool down below 16-15 zones to get the smooth ride in the market else restricted upside could continue to keep the pressure on the market.

Since it is the beginning of a new series Option data is scattered at various strikes. However, maximum Put OI is placed at 10600 followed by 10700 strikes while maximum Call OI is seen at 11000 followed by 10900 strikes.

Options band signifies a broader trading range of the March series in between 10585 to 11118 zones and requires a range breakout to start the next leg of the rally, suggest experts.

Stocks in news

Sugar stocks gained after Iran decided to buy raw sugar for the first time in the last five years.

ARSS Infrastructure Projects rose 5 percent on bagging work order worth Rs 429 crore from National Highways & Infrastructure Development Corporation.

Odisha Cement shares plunged 4 percent after illegal transfer of MF units worth Rs 344 crore by Depository Participant (DP) from the demat account held by its subsidiaries, OCL India and Dalmia Cement East.

Vascon Engineers gained more than 9 percent after the company received order worth Rs 83.52 crore.

Ramco System shares rallied nearly 4 percent after the beginning of a seven-year deal with Canadian logistics services provider.

Global Updates

European indices were mostly lower on Thursday, as US President Donald Trump and Kim Jong Un in Hanoi ended their talk without an agreement.

Asian markets also ended lower post-Trump-Kim summit is cut short without agreement. Kospi was down 1.76 percent to close at 2,195.44, while Shanghai Composite declined 0.44 percent to close at 2,940.95

Hang Seng index was down 0.4 percent to end at 28633.18 and Nikkei declined 0.79 percent to 21,385.16.

Disclaimer: 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.
First Published on Feb 28, 2019 05:33 pm
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