Indian market is likely to build on gains for the second day in a row on February 4 following stable Asian markets and fall in crude oil prices which hit a 13-month low.
Brent crude futures crashed to $54.11 a barrel, bringing losses for the year so far to 18 percent, while US crude sank to $49.99, said a Reuters report.
On the global front, China’s central bank has flooded the economy with cash while trimming some key lending rates, but analysts suspect more will have to be done to offset the economic fallout from the virus, added the report.
Trends on SGX Nifty indicate a positive opening for the index in India, with a 45 points, or 0.39 percent, gain. Nifty futures were trading around 11,753-level on the Singaporean Exchange.
Rupee pared early losses to settle 3 paise down at 71.35 against the US dollar on Monday, tracking recovery in domestic equities and easing crude oil prices.
Foreign institutional investors (FIIs) sold shares worth Rs 1,200.27 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 1,286.63 crore in the Indian equity market on February 3, provisional data available on the NSE showed.
Big News:
As many as 93 companies on the BSE will declare their results for December quarter that include names like Adani Green, Adani Ports, Bharti Airtel, Dhanlaxmi Bank, Exide Industries, Gati, Indo Count, Punjab National Bank, Tata Global, Titan Company, TVS Motor etc. among others.
Bharti Airtel: Likely to report a loss of 414 cr for December quarter
PNB: PAT likely to fall by over 80% YoY
Titan Company: PAT likely to grow by 14% YoY
TVS Motor: PAT likely to fall by 20% YoY
(All estimates are from Motilal Oswal)
Technical View:
Nifty forms a bullish candle on the daily charts
On expected lines, index bounced back after breaching 200-DMA placed at 11,653
Though it will be too early to conclude that bottom is in place at Monday’s low of 11614, some consolidation with positive bias can’t be ruled out in next couple of trading sessions, suggest experts.
In case if bulls succeed in defending the low of 11614 levels then a best-case target of 11934 can’t be ruled out on Nifty in the next couple of sessions.
Bulls may abort this pullback attempt if Nifty fails to sustain above its 200-Day moving average on a closing basis and weakness shall resume with ultimate targets placed around 11200 levels.
For time being traders are advised to focus on stock-specific opportunities by remaining neutral on the index. Fresh shorting opportunity shall arise on a close below 11600 levels.
Three levels: 11614, 11749, 11900
Stocks in the news:
Welspun Corp on Monday reported a nearly eight-fold jump in consolidated net profit to Rs 223.48 crore in the third quarter of the current fiscal on higher income.
IT major Tata Consultancy Services on Monday said it has bagged a USD 1.5 billion (about Rs 10,650 crore) contract from pharma company Walgreens Boots Alliance, spread over a period of 10 years.
Ujjivan Financial Services has reported over a two-fold jump in consolidated net profit to Rs 74.97 crore during the third quarter ended December 2019.
Technical Recommendations:
We spoke to HDFC Securities and here’s what they have to recommend:
Piramal Enterprises | Sell | LTP: Rs 1,351.40 | Target price: Rs 1,180 | Stop loss: Rs 1,495 | Downside: 13%
Indiabulls Housing Finance | Sell | LTP: Rs 255.90 | Target price: Rs 220 | Stop loss: Rs 288 | Downside: 14%
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