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Last Updated : Jan 31, 2020 09:48 AM IST | Source: Moneycontrol.com

Market Headstart: Nifty50 may touch 12,050; volatility to remain high ahead of Budget

Trends on SGX Nifty indicate a positive opening for the index in India, with a 22 points, or 0.18 percent, gain


The Nifty50 closed the January series on a muted note on Thursday with Nifty Futures rollovers around 66 percent, compared to a 3-month average of 78 percent, data showed.

Nifty future settled the January series with loss of 0.75 percent as it closed at 12,035 mark versus December 2019 close of 12,126 levels.

Since it is the beginning of a new series, Option data is scattered at various strikes. Maximum Put OI is at 12000 followed by 11500 strikes while Maximum Call OI is at 12200 followed by a 12500 strikes.

Close

Let’s look at the final tally on D-Street for January 30 -   the S&P BSE Sensex fell 284 points to 40,913 while the Nifty50 closed 93 points lower at 12,035.

Sectorally, profit-taking was seen in the S&P BSE Energy index, followed by oil & gas, FMCG, and metal indices.

Asian markets were stable even though the World Health Organization (WHO) said on Thursday it was declaring the coronavirus outbreak that has killed 170 people in China a global emergency, as cases spread to at least 18 countries.

Trends on SGX Nifty indicate a positive opening for the index in India, with a 22 points, or 0.18 percent, gain. The Nifty futures were trading around 12,061-level on the Singaporean Exchange.

The rupee lost 22 paise to close at a three-week low of 71.49 against the US dollar on Thursday tracking heavy sell-off in domestic equities and rising concerns over the outbreak of coronavirus.

Foreign Institutional Investors (FIIs) sold shares worth net Rs 962.28 crore, while Domestic Institutional Investors (DIIs) bought net Rs 292.35 crore worth of shares in the Indian equity market on January 30, as per provisional data available on the NSE.

Big News:

As many as 109 companies in the BSE will declare their results for the December quarter that include names like HUL, ITC, State Bank of India, Power Grid, Tech Mahindra, Bank of India, and Vedanta.

ITC: PAT likely to grow by 22% YoY

HUL: PAT likely to grow by 14% YoY

SBI: PAT likely to grow by 82% YoY

(All estimates are from Motilal Oswal)

Technical View:

Nifty formed a bearish candle or a bearish belt hold kind of pattern on the daily charts

The index slipped below its crucial 50-Days EMA placed at 12085

We are heading towards the penultimate session before major economic event Budget 2020 – volatility will remain high

On the upside 12150-12200 is likely to act as a crucial hurdle for the index

Traders are advised to remain neutral on the long side whereas intraday shorting can be considered if Nifty trades below 11990 for a target of 11930

Three levels: 12010, 12150, 12200

Stocks in news:

Automaker Tata Motors on January 30 said its consolidated net profit for the December quarter of the financial year 2020 stood at Rs 1,738.30 crore against a loss of Rs 26,992.54 crore in the corresponding quarter of the previous financial year.

Drug firm Laurus Labs on Thursday posted four-fold jump in its consolidated net profit at Rs 73.47 crore for the third quarter ended December 31, 2019.

Telecom infrastructure company Bharti Infratel on Thursday posted a 23 per cent jump in consolidated net profit at Rs 798.7 crore for the third quarter ended December 2019.

Technical Recommendations:

We spoke to IndiaNivesh Securities and here’s what they have to recommend:

Exide Industries | Buy | LTP: Rs 199.10 | Target: Rs 207 | Stop loss: Rs 189 | Upside: 4%

Bharti Airtel | Buy | LTP: Rs 487.05 | Target: Rs 540 | Stop loss: Rs 465 | Upside: 11%

Berger Paints | Sell | LTP: Rs 568 | Target: Rs 540 | Stop loss: Rs 585 | Downside: 5%

Disclaimer: The views and investment tips expressed by investment experts 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.

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First Published on Jan 31, 2020 08:54 am
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