Indian market is likely to consolidate further on Friday tracking the muted trend seen in other Asian markets. Investors got spooked by a sharp rise in the number of coronavirus cases in China this week.
China’s Hubei province on Friday reported 4,823 new cases, well above the levels seen earlier this month. While a record spike seen a day earlier was mostly due to new methodology used to count new infections, it nonetheless weighed on investor sentiment, said a Reuters report.
Trends on SGX Nifty indicate a positive opening for the index in India, with 28 points, or 0.23 percent, gain. The Nifty futures were trading around 12,178-level on the Singaporean Exchange.
The final tally on D-Street on February 13 – the S&P BSE Sensex was down 106 points to 41,459 while the Nifty50 fell 26 points to 12,174 on Thursday.
Sectorally, the action was seen in healthcare, consumer durable, IT, and FMCG indices while profit booking was seen in Banks, Oil & Gas, Metals, and Realty indices. Nifty Bank 262 points or 0.8 percent to close at 31,230.
Broader markets outperformed as the S&P BSE Midcap index closed flat while the S&P BSE Smallcap index was up 0.07 percent.
The rupee on Thursday settled flat at 71.33 (provisional) against the US dollar after weak macro-economic data disappointed market participants.
On the institutional front, FPIs were net buyers in Indian markets for Rs 1061 cr while the DIIs were net sellers to the tune of Rs 960 cr, provisional data showed.
Big News:
As many as 937 companies on the BSE will declare their results for December quarter that include names like ONGC, Shree Cements, Muthoot Finance, Balkrishna Industries, Pfizer, Sun TV, SAIL, Fortis Healthcare, Glenmark Pharma, SpiceJet, etc. among others.
ONGC: PAT likely to fall by 39% YoY
Muthoot Finance: PAT likely to grow by 31% YoY
Sun TV: PAT likely to grow by 23% YoY
Glenmark Pharma: PAT likely to fall by 13% YoY
(All estimates are from Motilal Oswal)
Stocks in the news:
The country's oldest public sector financial institution IFCI Ltd on Thursday reported a consolidated net profit of Rs 335.38 crore in the third quarter ended December.
Apollo Hospitals Enterprise Ltd on Thursday said it has recorded a consolidated profit of Rs 89.95 crore during the quarter ending December 2019 as against Rs 49.87 crore during the corresponding period the previous year.
FMCG firm Gillette India on Thursday reported 31.63 percent rise in profit after tax (PAT) at Rs 71.07 crore for the quarter ended December 31, 2019.
Vodafone Idea on February 13 reported a loss of Rs 6,453.2 crore for the December quarter of FY20 against a loss of Rs 5,004.6 crore posted in the corresponding quarter of the previous financial year.
Technical View:
Nifty formed a bearish candle on the daily charts which resembles a Hanging Man kind of pattern
The Nifty50 closed above its 50-DMA placed at 12,126
A close below 50-DMA could take Nifty towards 11990 levels. Contrary to this, a strong close above 12231 levels shall initially take the indices towards 12266 and thereafter a slightly bigger target in the zone of 12350 – 12400 can’t be ruled out.
Intraday traders can consider a long position if Nifty sustains above 12232 levels for more than 30 minutes and look for a target of 12290, suggest experts.
India VIX fell down by 1.84% at 13.37 levels. Volatility is cooling off from the last two weeks which is supporting Bulls and buy on decline strategy in the market.
Three levels: 12139, 12226, 12350
Max Call OI: 12500, 12400
Max Put OI: 12000, 11800
Technical Recommendations:
We spoke to IndiaNivesh Securities and here’s what they have to recommend:
ONGC | Buy | Target: Rs 116 | Stop-loss: Rs 98 | Upside: 10%
Aurobindo Pharma Futures | Sell | Target: Rs 490 | Stop-loss: Rs 555 | Downside: 7%
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