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Last Updated : Feb 19, 2020 09:13 AM IST | Source: Moneycontrol.com

Market Headstart: Nifty likely to consolidate around 12K; eyes on Shree Cement, Yes Bank

In case for any reason if Nifty closes below 11900 in the next couple of sessions then corrective swing shall get extended into the zone of 11,783 – 11,749 levels.


The Indian equity market which closed with losses for the fourth straight day on February 18 is likely to consolidate further around 12,000 levels on February 19, tracking positive trend seen in other Asian markets, but fears of coronavirus (COVID-19) could cap the upside.

Let’s look at the final tally on D-Street on February 18 – the S&P BSE Sensex fell 161 points to 40,894 while the Nifty50 closed with losses of 53 points at 11,992.

Close

Tracking the momentum, more than 200 stocks on the BSE hit a fresh 52-week low which includes names such as Gillette India, Hero MotoCorp, IndusInd Bank, Sobha, ITC, Everest Industries, and Marico among others.

The broader market underperformed as the S&P BSE Mid-cap index fell 0.6 percent, and the S&P BSE Small-cap index was down 0.45 percent.

Moody's on February 18 lowered the growth forecast for the Asia-Pacific (Apac) region to 5.2 per cent for 2020 citing the lingering impact of COVID-19 outbreak, the market impact of which will be more pronounced on China and India.


The Indian rupee tumbled by 24 paise to settle at 71.56 (provisional) against the US dollar on February 18 as concerns over the economic fallout from coronavirus outbreak continued to roil forex market sentiment.


On the institutional front, foreign portfolio investors (FPIs) were net sellers in the Indian markets for Rs 74 crore while the domestic institutional investors (DIIs) were also net sellers to the tune of Rs 309 crore, provisional data showed.

 

Big News:

Indian business leaders are demanding cuts in import duties on antibiotic drugs, mobile parts and other items as the COVID-19 outbreak has disrupted supplies from China, government and industry officials said.

The outbreak of the virus in China has hit India's manufacturing and exports of medicines, electronic, textile and chemicals as China is the biggest source of intermediate goods, worth $30 billion a year, according to a presentation by the Confederation of Indian Industries (CII).

Nirmala Sitharaman said secretaries will meet again to chart out a course of action which will be finalised after consulting the prime minister's office.

"There are no concerns about price rise so far due to coronavirus," she said, adding it is too early to talk about the impact of COVID-19 outbreak on the Make in India initiative. Finance minister said sectors like pharmaceuticals, chemicals and solar equipment are increasingly experiencing disruption.

Stocks in news:

Shree Cement, the country's second-largest cement maker by market capitalisation, will replace private sector lender Yes Bank in Nifty50 with effect from March 27.

Technical View:

Nifty formed a bearish candle which looked like a ‘Hammer’ kind of pattern

Nifty bounced back after hitting a low of 11,908 but failed to hold on to 12,000 levels

Now 11,908 shall remain sacrosanct support for short term traders going forward.

Sustaining above the said level a pullback towards 12,160 is eventually possible.

In the next trading session traders with a high-risk appetite can go long if Nifty opens on a bearish note preferably around 11,950 levels but with a stop below 11,900 levels, experts suggest.

In case for any reason if Nifty closes below 11,900 in the next couple of sessions then corrective swing shall get extended into the zone of 11,783 – 11,749 levels, they say.

Max Call OI: 12,200, 12,300

Max Put OI: 12,000, 11,800

Technical Recommendations:

We spoke to SMC Global Securities and here's what they have to recommend:

Affle (India): Buy| LTP: Rs 2,042| Target: Rs 2,380| Stop Loss: Rs 1,750| Upside 16%

Nilkamal: Buy| LTP: Rs 1,503| Target: Rs 1,670| Stop Loss: Rs 1,375| Upside 11%

Voltas: Buy| LTP: Rs 693| Target: Rs 753| Stop Loss: Rs 655| Upside 8%

 

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their 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 19, 2020 08:21 am
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