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Last Updated : Jan 29, 2020 09:28 AM IST | Source: Moneycontrol.com

Market Headstart: F&O data shows Nifty to find support at 12k; Bajaj twins in focus

Trends on SGX Nifty indicate a positive opening for the index in India, with a 40 points, or 0.34 percent, gain


Indian market witnessed selling pressure for the second day in a row on Tuesday as global equities extended their decline on a possibility that the Coronavirus may turn out be a global epidemic.

Market participants across the globe would watch out for the outcome of the US Fed 2-Day meeting scheduled on January 28-29. Indian markets would react to the Fed outcome on Thursday. Most analysts expect the US Fed to maintain status-quo.

Most of the Asian markets were trading higher as better-than-expected Apple Inc earnings drove some regional tech gains but upside remain capped on worries about the economic impact of China’s virus outbreak.

Close

Markets in Asia could be subdued before the US Federal Reserve meeting later on Wednesday. Investors are also cautious ahead of a Bank of England policy decision on Thursday, which many analysts say is too close to call, said a Reuters report.

Trends on SGX Nifty indicate a positive opening for the index in India, with a 40 points, or 0.34 percent, gain. The Nifty futures were trading around 12,108-level on the Singaporean Exchange.

Let’s look at the final tally on D-Street on January 29 – the S&P BSE Sensex fell 188 points to 40,966 while the Nifty50 closed 63 points lower at 12,055 on Tuesday.

Sectorally, action was seen in the S&P BSE Oil & Gas index, followed by IT and Finance while profit-taking was seen in telecom, metal, energy, power and auto stocks.

More than 80 stocks on the BSE hit a fresh 52-week high that includes names like MRF, Atul, Dixon Tech, SRF, Dr. Reddy’s Laboratories, Info Edge, and Divi’s Laboratories.

The Indian rupee on January 28 appreciated by 10 paise to end at 71.33 against the US dollar as crude prices eased following concerns that oil demand will be hit amid rapid spread of Coronavirus from China to other countries.

On the institutional front, FPIs were net sellers in Indian markets for Rs 1,357 cr while the DIIs were net buyers to the tune of Rs 711 cr, provisional data showed.

Big News:

As many as 68 companies will declare their results for December quarter that include names like Aptech, Bajaj Finance, Bajaj Finserv, Birla Corp, Dixon Technologies, Escorts, Godrej Consumer, Jubilant FoodWorks, KPIT Tech, NIIT Technologies, Pidilite Industries, Tata Power, and Vaibhav Global.

Bajaj Finance: PAT likely to rise by 55% YoY

Bajaj Finserv: PAT likely to grow by 73% YoY

Jubilant FoodWorks: PAT likely to grow by 14% YoY

Tata Power: Likely to report a profit of Rs 249 cr

(All estimates are from Motilal Oswal)

Technical View:

Nifty formed a bearish candle on the daily charts| Supertrend indicator gave a sell signal

The last time when Supetrend gave a sell signal Nifty50 hit a low of 11,980 before bouncing back to touch a record high above 12400 levels

The index also slipped below 50-Days EMA placed at 12088 levels

Nifty closed below its recent corrective swing low of 12087 levels, and as long as Nifty stays below its 50-EMA it should be expected to initially slide towards 11900 levels

Some stability in the index should be expected on reclaiming 12100 levels on closing basis. All technical parameters on lower time frame charts turned bearish traders are advised to initiate fresh shorts with a stop above 12100 levels and look for a target close to 11900, suggest experts.

Three levels: 11900, 12024, 12200

Max Call OI: 12200, 12300

Max Put OI: 12000, 11500

Stocks in the news:

Net profit of Century Textiles & Industries declined 57.37% to Rs 35.88 crore in the quarter ended December 2019 as against Rs 84.17 crore during the previous quarter ended December 2018.

Yes Bank on January 28 offloaded shares worth over Rs 5.7 crore in Reliance Power through an open market transaction.

JK Lakshmi Cement: Q3 standalone profit jumped 233 percent to Rs 49.2 cr, revenue rose 7.5 percent to Rs 1,004.9 cr YoY.

Technical Recommendations:

We spoke to Sanctum Wealth Management and here’s what they have to recommend:

Info Edge (India) | Buy | LTP: Rs 2,762.50 | Target: Rs 3,080 | Stop loss: Rs 2,660 | Upside: 11.49%

Dr. Lal Path Labs | Buy | LTP: Rs 1,760 | Target: Rs 1,980 | Stop loss: Rs 1,695 | Upside: 12.5%

Mahanagar Gas (MGL) | Buy | LTP: Rs 1,240.85 | Target: Rs 1,375 | Stop loss: Rs 1,175 | Upside: 10.81%

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 29, 2020 08:40 am
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