Indian market is likely to head higher after a flat start on Friday tracking mixed trend seen in other Asian markets, but Nifty50 could face some selling pressure near 12,200 levels based on technicals.
Trends on SGX Nifty indicate a flat opening for the index in India, with a loss of 5 points, or 0.04 percent. Nifty futures were trading around 12,124-level on the Singaporean Exchange.
The S&P BSE Sensex rose for the fourth consecutive day in a row while Nifty50 reclaimed crucial 50-Days Moving Average (DMA) placed at 12,117.
Rate-sensitive stocks, including NBFC and housing finance companies, rallied on ease in liquidity measure introduced by the govt. and the possibility of lower rates in the future.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 163 points to 41,306 while the Nifty50 closed 48 points higher at 12,137.
Sectorally, action was seen in the S&P BSE Telecom which rose 1.9 percent, followed by the S&P BSE Public Sector that was up 1.5 percent, and the S&P BSE Oil & Gas index rose nearly 1 percent.
The Nifty Bank rose nearly 1 percent outperforming the benchmark indices, supported by gains in IndusInd Bank, RBL Bank, Bank of Baroda, SBI, and PNB.
The rupee on Thursday rose by 6 paise to close at 71.19 against the US dollar after the RBI left the policy rates unchanged but maintained its accommodative stance to boost growth.
On the institutional front, FPIs were net sellers in Indian markets for Rs 560 cr while the DIIs were net buyers to the tune of Rs 304 cr, provisional data showed.
Big News:
As many as 201 companies on the BSE will declare their results for December quarter that include names like Abbott India, ACC, Alkem Laboratories, Apex Frozen, Ashoka Buildcon, Britannia Industries, Corporation Bank, Emami, India Cements, Inox Leisure, JSW Holdings, KEC International, Max India, Mahanagar Gas, NHPC, NTPC, Oberoi Realty, Repco Home, Tata Steel, UPL Ltd, Voltas, etc. among others.
ACC: PAT likely to grow by 43% YoY
Oberoi Realty: PAT likely to grow by 56% YoY
Britannia Industries: PAT likely to grow by 15% YoY
Tata Steel: Likely to report a loss of Rs 372 cr
Voltas: PAT likely to grow by 33% YoY
(All estimates are from Motilal Oswal)
Technical View:
Nifty formed a bullish candle on the daily charts which resemble a Spinning top kind of pattern
It surpassed its crucial 50-DMA placed at 12117
A close above 12,160 would trigger a buy signal on the Supertrend indicator
In the last 4 sessions, Nifty added around 550 points to its kitty thereby dragging some of the momentum oscillators into the overbought zones on lower time frame charts which suggest some consolidation in the offing
As long as it sustains above 12,084 levels it may try to drag on its feet towards its logical targets of 12,266 levels
Short term weakness shall be expected on a close below 12084 levels and in such a scenario initial target can be towards 11950 levels, suggest experts.
Three levels: 12084, 12160, 12266.
Stocks in the news:
Hero MotoCorp on February 6 reported a 14.5 percent year-on-year growth in Q3FY20 profit at Rs 880.4 crore, largely driven by a sharp fall in tax cost.
Pharma firm Lupin on Thursday reported widening of its consolidated net loss to Rs 835 crore for the quarter ended December 2019 on account of exceptional items including impairment of Gavis portfolio.
Aditya Birla Fashion and Retail on Thursday reported a consolidated net loss of Rs 37.64 crore for the quarter ended on December 31, 2019.
Technical Recommendations:
We spoke to IndiaNivesh Securities Ltd and here’s what they have to recommend:
Infosys Future | Sell | Target: Rs 725 | Stop loss: Rs 785 | Downside: 6%
HDFC AMC | Buy Target: Rs 3,700 | Stop loss: Rs 3,100 | Upside: 12%
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