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Last Updated : Feb 05, 2020 09:07 AM IST | Source: Moneycontrol.com

Market Headstart: Nifty likely to reclaim 12,000; investors hope for more stimulus in China

Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 20 points loss or 0.17 percent. The Nifty futures were trading around 11,952-level on the Singaporean Exchange.


Indian market is likely to head towards 12,000 levels on February 5 tracking positive trend seen in other Asian markets. Nifty50 recouped most of the Budget Day losses as Nifty50 rose nearly 300 points while the S&P BSE Sensex rallied by over 900 points on Tuesday.

Trends on SGX Nifty indicate a negative opening in India with a 20 points, or 0.17 percent, loss. The Nifty futures were trading around 11,952-level on the Singaporean Exchange.

Asian markets were trading higher on hopes of additional Chinese stimulus to lessen the economic impact of a coronavirus outbreak, but risks remain as the illness continues to spread and the death toll neared 500, said a Reuters report.

Close

The People’s Bank of China (PBOC) is likely to lower its key lending rate - the loan prime rate - on Feb. 20, and cut banks’ reserve requirement ratios in the coming weeks, policy sources told Reuters.

On the domestic front, let’s look at the final tally on D-Street on Tuesday – the S&P BSE Sensex rose 917 points to 40789 while the Nifty50 closed with gains of 271 points at 11,979.

Investors' wealth increased Rs 3.57 lakh crore in two days of market rally where the Sensex zoomed 917 points on Tuesday in a broad-based recovery after the Budget-day fall.

The Indian rupee on February 4 appreciated by 11 paise to close at 71.27 against the US dollar, tracking heavy buying in domestic equities and easing crude prices.

On the institutional front, FPIs were net buyers in Indian markets for Rs 366 cr while the DIIs were net buyers to the tune of Rs 601 cr, provisional data showed.

Big News:

As many as 87 companies on the BSE will declare their results for December quarter that include names like Adani Enterprises, Ajanta Pharma, Andhra Bank, Apollo Tyre, Berger Paints, BOSCH, Cadila Healthcare, Cipla, Divi’s Laboratories, Gujarat Gas, HPCL, Indiabulls Housing Finance, Jyothy Labs, PNC Infratech, PTC India, TCI Industries, and Zuari Agro.

Cipla: PAT likely to grow by 21% YoY

Divi’s Laboratories: PAT likely to fall by 5% YoY

Cadila Healthcare: PAT likely to fall by 26% YoY

HPCL: PAT likely to grow by over 500% YoY

(All estimates are from Motilal Oswal)

Technical View:

Nifty50 made a ‘Long White Day’ kind of candle and is just 21 points away from 12000

Upsides there seems to be resistance around its 9-Day Simple Moving Average (11987) as pullback attempts on a corrective swing from the highs of 12430 – 11614 perished after testing the said average.

The rally could extend towards 12087-12117

Considering the last two days of strength traders can look forward to buy the dips whereas shorting shall be completely avoided, suggest experts

Three levels: 11614, 12087, 12100

Stocks in news:

Public lender Punjab National Bank on Tuesday reported a surprise standalone loss of Rs 492.28 crore for the December quarter compared with a profit of Rs 246.51 crore in the same period last year.

Telecom operator Bharti Airtel on February 1 reported a consolidated loss of Rs 1,035 crore for the quarter ended December 2019, impacted by exceptional charge related to license fee and spectrum usage.

Titan Company reported a standalone net profit of Rs 470 crore for the December quarter, which is up 12.9 percent from Rs 416.23 crore in the same period last year.

Technical Recommendations:

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

Asian Paints Ltd: Buy| Target: Rs 2050| Stop Loss: Rs 1780| Upside 9%

Cholamandalam Investment and Finance Company Ltd: Buy| Target: Rs 357| Stop Loss: Rs 315| Upside 8%

Lux Industries Ltd: Buy| Target: Rs 1670| Stop Loss: Rs 1390| Upside 12%

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.

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First Published on Feb 5, 2020 08:34 am
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