Indian market is likely to consolidate around 11,700 levels on February 26 tracking mixed trend seen in other Asian markets.
Asian shares fell on Wednesday after a US government warned Americans to prepare for the possibility of a coronavirus pandemic. This pushed Wall Street stocks lower and yields on safe-haven Treasuries to record lows.
Trends on SGX Nifty indicate a negative opening in India, with a 94 points, or 0.8 percent, loss. The Nifty futures were trading around 11,724-level on the Singaporean Exchange.
Indian markets consolidated and closed in the red for the third consecutive day in a row on Tuesday amid weak global cues. Tracking the weakness, more than 200 stocks hit a fresh 52-week low on the BSE.
These include Gillette India, Hero MotoCorp, L&T, BASF India, LIC Housing Finance, HPCL, Canara Bank, DCB Bank, among others.
Let’s look at the final tally on D-Street – the S&P BSE Sensex closed 82 points lower at 40,281 while the Nifty50 fell 31 points to close at 11,797.
Sectorally, the action was seen in realty, telecom, IT and metal stocks while profit-taking was witnessed in energy, oil & gas, healthcare, consumer durables, and auto indices.
The rupee on February 25 recovered 13 paise to close at 71.85 (provisional) against the US dollar amid easing crude oil prices and weakening of the American currency in the overseas market.
On the provisional front, FPIs were net sellers in Indian markets for Rs 2315 cr while the DIIs were net buyer to the tune of Rs 1565 cr, provisional data showed.
Big News:
A big trade deal could be in the offing between the US and India: sources
Prime Minister Narendra Modi on Tuesday said increasing the bilateral defence and security cooperation is a very key aspect of this relationship.
Modi said as far as bilateral trade is concerned, there have been positive talks between the two commerce ministers.
India and the US on Tuesday finalised defense deals worth USD 3 billion and signed three MoUs, including one in the energy sector
Technical View:
Nifty formed a bearish candle on the daily charts for the 3rd consecutive day in a row
Bulls have put in a tough fight around 11800 levels| Critical support is placed around 11783 – 11740 levels
There seem to be multiple supports emerging on the downsides at every 50 point decline. In case if Nifty fails to hold 11749 then it can head to test its 200-Days Simple Moving Average (SMA) support placed around 11684 levels
Strength is expected to come if Nifty manages a close above 11900 in the next couple of trading sessions which then can pave the way for sideways consolidation, suggest experts
Traders are advised to remain neutral and focus on stock-specific opportunities.
Three levels: 11779-11750, 11883, 11900
Max Call OI: 12000, 12200
Max Put OI: 11800, 11700
Stocks in the news:
India Cements: Gopikishan S Damani, the brother of ace investor Radhakishan Damani, bought 2.75 percent stake in India Cements on February 25.
Bank of Baroda: BoB said it has moved the Supreme Court against an order passed by the Calcutta High Court in a matter related to a bank guarantee issued on behalf of Simplex Projects Ltd.
Vedanta: Anil Agarwal said he is open to selling a stake in Cairn India to make it valuable for investors. Agarwal said that the company is interested in buying a stake in BPCL.
Technical Recommendations:
We spoke to SMC Global Securities and here’s what they have to recommend:
Minda Corporation Ltd: Buy| LTP: Rs 115.25| Target: Rs 126| Stop Loss: Rs 105| Upside 9%
IPCA Laboratories Ltd: Buy| LTP: Rs 1426| Target: Rs 1584| Stop Loss: Rs 1290| Upside 11%
NIIT Technologies Ltd: Buy| LTP: Rs 1889| Target: Rs 2045| Stop Loss: Rs 1775| Upside 8%
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