Closing Bell: Nifty ends below 12,100, Sensex slips 188 pts; metal stocks fall

Taking Stock: Coronavirus jitters grip D-St for the 2nd day; Sensex below 41K

Coronavirus jitters gripped D-Street for the second day in a row on Tuesday which pushed the S&P BSE Sensex lower by nearly 200 points while the Nifty50 broke its crucial support at 12,100, and 50-Days Exponential Moving Average (EMA) placed at 12088.... Read More

Auto sector has given a setback to the market due to low demand, fall in realisations and higher competition. India is taking a careful approach since Q3 has not given a positive sign of revival in corporate earnings as expected. Global market is negative on concerns that Novel Coronavirus issue may slowdown the world economy.

The weakness continued in the market for the second consecutive session and the Nifty closed the day lower. The key lower support area of previous opening upside gap of 9th Jan has been filled completely at 12045 and the Nifty failed to show any sustainable upside recovery from that gap support. It closed just above the lower gap area. This is negative indication.

A long bear candle was formed today and this indicates a possibility of some more weakness in the market ahead. The next important support is placed at 11930 levels, which is a swing low of 8th Jan and this area is going to be tested soon.

Bulls lose the grip as index slips below the important support zone of 12,100. Nifty is vulnerable for further downside towards the support zone of 11,800 as the important support zone fails to hold ahead of the event. Metals were under pressure in the trade. Near term, long positions should be exited as the index slips below the support zone. Expect volatility to persist ahead of the Budget session. 12,250 zone is likely to act as resistance on recoveries.

For the second consecutive session, the Indian benchmark indices remained volatile and ended in the red, owing to rising economic slowdown concerns due to coronavirus, which has impacted both global as well as domestic investors sentiments. The Nifty index swung both ways and finally ended lower by 0.5% at 12,056 levels. Amongst, the broader markets, BSE-Midcap ended in-line with benchmark while Smallcap ended with marginal losses of 0.1%. On the sector front, except for IT, Oil & Gas and Realty, all the other indices ended in the red with Auto, Telecom and Metals being the top losers.

The earnings season is likely to gain momentum, as some of the front liners would be declaring their results in the next few days. So far, Q3 corporate earnings have been mixed as well as below street expectations. In addition, the key monitorable for market participants would be union budget as expectations are high that government would announce some measures to boost economic growth. Apart from this, FOMC meet outcome (scheduled on 28-29th January) and commentary on growth and outlook would be keenly watched. Hence, consolidation in the Indian markets in the near term cannot be ruled out.

It was the second day of selling in the Indian equity market along with sell-off in the global markets on the back of fear of "Coronavirus". There is selling in heavyweights as FIIs are selling in the cash market as well as in the F&O market. Reliance, ICICI Bank, Bharti Airtel, and ITC were major contributors to the downside in today's trading session. Weak results by Maruti led to selling pressure in the overall auto sector which was also one of the reasons for today's downfall in the market. The issue of Coronavirus will continue to dominate in terms of global cues while the outcome of the US fed meeting yesterday night will also be an important factor. Sector-specific pre-budget move and Q3 results related movement are likely to continue. In terms of key earnings, Tata Power, Escorts, Bajaj Finance, Bajaj Finserv, Pidilite Industries, Jubilant Foodworks and NIIT technologies will post their Q3 results tomorrow.

Technically, 12025 is an important support level as Nifty has filled the gap at 12025 level which was created on 9th January. If Nifty manages to hold 12025 level then we can expect a smart recovery in the market where 12200/12300 will be immediate resistance levels while if Nifty slips below 12025 mark then the overall texture of the market will turn bearish where 11850/11700 will be immediate support levels.

The market witnessed selling pressure for the second day in a row. The Nifty shed over 100 points from the day’s highest level. Today, the Index opened on a positive note, but tepid global market cues and weak advance / decline ratio (1:2) helped bears maintain their stranglehold thereafter. Technically, the short-term trend remains weak, but 12000 should be a key support level. Above this level, we can expect a sharp pullback rally that will lift the index to 12150-12180 levels. However, trading below 12000 support level could trigger one more round of price correction up to 11950-11930. Ahead of Budget, the sectors which would be in focus are Banking, Infrastructure, FMCG, Auto.

Index closed on negative note for second consecutive day at 12060 with loss of 59 points forming a bearish candle on daily chart. Index managed to break its rising trend line support and closed below same hinting we may see some more dips if index continued to trade below 12150 zone which is strong resistance on the higher side, support for index is coming near 12000-11950 zone and immediate resistance is coming near 12110-12170 zone.

Benchmark indices ended lower for the second consecutive day on January 28 with Nifty slipped below 12,100 level.

At close, the Sensex was down 188.26 points or 0.46% at 40966.86, while Nifty was down 63.20 points or 0.52% at 12055.80. About 985 shares have advanced, 1511 shares declined, and 165 shares are unchanged.

Vedanta, Bharti Airtel, Tata Steel, Tata Motors and JSW Steel were among major losers on the Nifty, while gainers included BPCL, HDFC, Bajaj Finance, Sun Pharma and Bajaj Finserv.

Among sectors, metal index shed over 2 percent followed by infra, auto, bank, and energy.

A meeting of the Board of Directors of the bank is scheduled on 03.02.2020 for seeking in-principle approval for raising funds through issuance of Basel-III compliant Tier-II Bonds amounting up to Rs 1000 crore in one or more tranches.

The company has posted 62 percent rise in its Q3 net profit at Rs 19 crore versus Rs 11.8 crore and revenue was up 18 percent at Rs 495.7 crore versus Rs 420.4 crore, YoY.

Consolidated net profit rose 48.3% at Rs 159 crore versus Rs 107.2 crore and revenue was up 42 percent at Rs 1,329 crore versus Rs 936 crore, YoY.

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