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Market Headstart: Nifty likely to consolidate around 12,000; M&M, ACC eyed post Q3

On the institutional front, FPIs were net buyers in Indian markets for Rs 161 cr while the DIIs were net sellers to the tune of Rs 178 cr, provisional data showed.

February 10, 2020 / 09:15 AM IST

Nifty50 is likely to consolidate above 12,000 levels on Monday following muted trend seen in other Asian markets. The index closed a shade below 12,100 levels on Friday.

Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 20 points, or 0.17 percent, loss. The Nifty futures were trading around 12,064-level on the Singaporean Exchange.

Asian markets fell while safe-haven gold rose on Monday as the death toll from a coronavirus outbreak surpassed the SARS epidemic, raising alarm bells about its severity, said a Reuters report.

On Friday, losses extended on Wall Street as the Dow fell 0.9 percent, the S&P 500 declined 0.5 percent while the Nasdaq dropped 0.5 percent.

On the domestic front, after falling by about 5 percent or 587 points including the Budget Day losses in the week gone, Nifty50 managed to recover 437 points for the week ended February 7. The large action was seen in the broader market space.

The S&P BSE Sensex rose 3.5 percent while the Nifty50 rallied 3.75 percent. The S&P BSE Midcap index rose 5.1 percent while the S&P BSE Smallcap index was up 3.4 percent for the week ended February 7.

There are as many as 68 stocks in the S&P BSE 500 index that rallied 10-40 percent which include names like JSW Steel, Adani Green Energy, GE Power, JM Financial, Bajaj Electrical, Aurobindo Pharma, HEG, V-Mart, Shriram Transport, Honeywell Automation, and Shilpa Medicare etc. among others.

Experts feel that if the momentum continues which it should, traders should not get surprised to see record highs in the February series. But, there are key resistance levels which the Nifty50 has to surpass.

Union Finance Minister Nirmala Sitharaman on Sunday said that the government wants continuous engagement with industries and businesses and will act as a facilitator for hassle-free payments of taxes.

Foreign investors remained net buyers in Indian capital markets for a sixth straight month in February, putting in a net amount of Rs 5,177 crore mainly in the debt segment in the month so far, according to depositories data.

The rupee declined by 22 paise to settle at 71.40 against the US dollar on Friday amid selling in domestic equities and strengthening of the American currency overseas.

On the institutional front, FPIs were net buyers in Indian markets for Rs 161 cr while the DIIs were net sellers to the tune of Rs 178 cr, provisional data showed.

Big News:

As many as 230 companies on the BSE will declare their results for December quarter that include names like Aban Offshore, Grasim Industries, General Insurance, Motherson Sumi, Petronet LNG, MRF, Bharat Forge, Rajesh Exports, Union Bank of India, Oil India, JMT Auto etc. among others.

Bharat Forge: PAT likely to fall by over 40% YoY

Grasim Industries: PAT likely to fall 43% YoY

Oil India: PAT likely to fall by 35% YoY

(All estimates are from Motilal Oswal)

Technical View:

Nifty50 formed a Bearish Engulfing pattern on the daily charts

Experts feel that there could be a possibility of further downside if Nifty50 trades below 12,160 levels in the coming week as well.

The near term outlook is tilted towards bears as MACD gave a bearish crossover or triggered a sell signal on charts.

On the downside, the first support is placed at 11,950 while on the upside, a close above 12160 could take the index towards 12,266.

Three levels: 11950, 12073, 12200

Max Call OI: 12500, 12400

Max Put OI: 12000, 11500

Stocks in the news:

Utility vehicle and tractor maker Mahindra & Mahindra (including 100 percent subsidiary Mahindra Vehicle Manufacturers) on February 8 registered a massive 72.8 percent year-on-year (YoY) growth in Q3FY20 profit due to one-time impairment provision.

Cement maker ACC on Friday reported a 62.68 per cent decline in consolidated net profit to Rs 273.28 crore for the quarter ending December 2019. Its total income was up 4.89 percent at Rs 4,117.85 crore during the quarter under review.

JK Cement on February 8 reported more than three-fold growth in consolidated net profit to Rs 124.3 crore for the third quarter ending December 2019, partly driven by operating numbers and other income.

The government is planning to sell 5 percent stake in Steel Authority of India Ltd (SAIL) through an offer for sale, which could fetch about Rs 1,000 crore to the exchequer, an official said.

Yes Bank, on February 7 said it has secured shareholders' approval to raise Rs 10,000 crore through the issuance of equity shares or other convertible securities.

Technical Recommendations:

We spoke to Angel Broking and here's what they have to recommend:

Nippon Life India: Buy| LTP: Rs 379| Target: Rs 415| Stop Loss: Rs 358| Upside 9.5%

VIP Industries: Buy| LTP: Rs 496| Target: Rs 555| Stop Loss: Rs 461| Upside 12%

Disclaimer: The views and investment tips expressed by investment experts on are his own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Kshitij Anand
Kshitij Anand is the Editor Markets at Moneycontrol.