Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas
The Nifty witnessed selling pressure for the third consecutive session. On the hourly chart it breached the junction of 40 hour exponential moving average & the hourly lower Bollinger Band, which is a crucial near term support zone. This is a sign of weakness in the near term. Also the daily momentum indicator has turned in favor of the bears. Thus the index seems to have stepped into a consolidation phase. 15,000 – 15,430 will be the range for the consolidation. However if the level of 15,000 is breached on closing basis then the index will be poised for a deeper correction.
Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services:
This was a truncated week, and USDINR spot remained quiet, waiting for more cues. The focus will return to prospects of US stimulus and its impact on US yields. The rising yields are putting positive pressure on dollar index and in turn on USDINR spot, but the uptrend will be limited as traders need more proof that the US economy is getting in a better conditions. While, the optimism over additional stimulus will keep the spot below the psychological level of 73 zone. However, RBI intervention will be eyed. We expect the trading range to be in between 72.40-73.
Rohit Singre, Senior Technical Analyst at LKP Securities
:
One more negative session witnessed on the street as the index closed at 15,117 with loss of 0.60 percent and formed a bearish candle for a third consecutive session on the daily chart. Index consecutively breaking every support and now final strong support is placed at 15k mark and any close below said levels can push the index to more dipper level of 14,750 zone. The strong resistance is coming near 15,250 and fresh upside-only possible if index managed to sustain above 15,250 zone.
S Ranganathan, Head of Research at LKP Securities:
While Indices ended in the red on Thursday, the under ownership in PSU stocks was evident today also as several of them across sectors posted smart gains. The PSU bank index which rose 6% yesterday recorded huge gains for the second day in a row led by privatisation hopes. In the broader market, Non-Life Insurers & Paper stocks saw keen interest among investors.
S Ranganathan, Head of Research at LKP Securities:
While Indices ended in the red on Thursday, the under ownership in PSU stocks was evident today also as several of them across sectors posted smart gains. The PSU bank index which rose 6% yesterday recorded huge gains for the second day in a row led by privatisation hopes. In the broader market, Non-Life Insurers & Paper stocks saw keen interest among investors.
Vinod Nair, Head of Research at Geojit Financial Services:
Market remained in the mood for consolidation for the third day, impacted by negative cues from Asian markets. Globally, markets are showing weakness due to spike in US bond yield while improving corporate earnings and continued inflow of foreign funds is providing support to the domestic market. Bearish rally in the market was led by private banks and auto stocks while PSU Banks continued its outperformance on hopes of privatisation.
Market Close
At close, the Sensex was down 379.14 points or 0.73% at 51,324.69, and the Nifty was down 89.90 points or 0.59% at 15,119. About 1609 shares have advanced, 1316 shares declined, and 151 shares are unchanged.
Bajaj Finance, Nestle, Kotak Mahindra Bank, M&M and Shree Cements were among major losers on the Nifty, while gainers included ONGC, GAIL, BPCL, IOC and NTPC.
On the sectoral front, PSU Bank rose 5 percent and IT, Metal and Energy indices gained 1-2 percent, while auto index slipped 1 percent.
Fitch upgrades Jubilant Pharma:
Fitch Ratings has upgraded Singapore-based Jubilant Pharma Limited's (JPL) Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB' from 'BB-' and affirmed its senior unsecured rating and the rating on its senior unsecured notes at 'BB'. The outlook is stable.
RailTel Corporation IPO subscribed 19.5 times:
RailTel Corporation of India, a Mini Ratna central public sector enterprise and information & communications technology (ICT) infrastructure provider, will close its initial public offering on February 18.
The Rs 819-crore offer has subscribed 19.5 times as the issue received bids for 119.3 crore equity shares against IPO size of over 6.11 crore shares, the subscription data available on the exchanges showed.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
Indian stock indices turned negative, with Sensex and Nifty trading with notable losses. Domestic optimism was influenced by pessimistic hints from other Asian markets.The traders are advised to refrain from building a new buying position until further improvement and breakout of 15,370.
Subscribe to RailTel Corporation of India: Mehta Equities
On valuations parse at upper price band (Rs 94), the issue is asking for market cap Rs 3017 crore with PE (annualised FY21) 33x and P/BV stands at 2x which seems to be fairly priced.
Hence, looking at the faster digital transformation of Indian Railways and future growth prospects, we recommend investors to ‘subscribe for listing gain” only.
Rupee trades higher:
Indian rupee is trading marginally higher at 72.69 per dollar,amid selling seen in the domestic equity market.It opened flat at 72.76 per dollar against Wednesday's close of 72.75.
Nifty Auto Index slipped 1 percent dragged by the Balkrishna Industries, Motherson Sumi, Ashok Leyland:
Shilpa Medicare gets import alert from USFDA
The Company has received an Import Alert 66-40 on February 17, 2021, pursuant to the USFDA inspection of the Unit 4, Jadcherla, Telangana facility from Feb 13 - 20 and Feb 24-25, 2020.
Three products have been exempted from the Import Alert - Azacitidine for Injection, Cyclophosphamide Capsules and Erlotinib Tablets.
We are committed to address the concerns raised by the USFDA and will work with the US FDA to resolve these issues at the earliest, company said.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Gold prices traded steady with COMEX spot gold prices were trading near USD 1,780 per ounce on Thursday. Gold April future contract at MCX were trading up at Rs 46,404 per 10 grams by noon. We expect gold prices to trade sideways to up with COMEX spot gold support lies at USD 1,760 and resistance at USD 1,800. MCX Gold April support lies at Rs 46,000 and resistance lies at Rs 46,700.
ICICIdirect on Torrent Power
: The power space has remained resilient in the last couple of months with stocks like Torrent Power underperforming its peers. We believe the stock has significant room for upsides. After remaining range bound for some time, the recent up move is likely to continue towards Rs 400 and above levels. The open interest in the stock has increased sharply in the last two months and current OI in the stock is at a six-month high. We expect short positions to have been formed in the stock. Last few sessions of the February series saw closure of open interest suggesting ongoing short covering. We believe the ongoing short covering will continue, which should take the stock higher in the coming trading sessions.
European markets update:
January aviation data:
Domestic air traffic growth at 5.55 percent (MoM) and down 39.5 percent YoY. IndiGo market share at 54.3 percent against 53.9 percent (MoM). SpiceJet market share at 12.8 percent against 13 percent (MoM). IndiGo passenger load factor at 69.3 percent against 71.5 percent (MoM). SpiceJet passenger load factor at 76.6 percent against 78 percent (MoM).
Likhita Chepa, Senior Research Analyst at Capitalvia Global Research
: Indian equity benchmarks made flat-to-positive start amid mixed global cue with opening at 15,238.70 and turned negative in late morning deals, with both Sensex and Nifty trading with notable losses. Negative cues from other Asian markets impacted domestic sentiments. Traders ignored the reports of continuing efforts to improve the ease of doing business in the securities market, Sebi approved a number of proposals, including relaxing minimum public offer requirements and amending norms for portfolio managers.
Meanwhile, in order to boost telecom industry, the government has approved a Rs 12,195 crore production-linked incentive (PLI) scheme for telecom gear manufacturing in India. Nifty sectoral indices were trading mixed, with Nifty PSU Bank index gaining 3.3 percent while Nifty Pharma lost nearly half a percent.
General Insurance Corporation locked in 20% upper circuit
General Insurance Corporation of India share price was locked in 20 percent upper circuit on February 18 on government divestment buzz. ET reported, citing people aware of the matter, that the government is debating whether the reinsurer should also be divested.
The finance ministry and Niti Aayog will together finalise whether the general insurer will be considered for privatisation, a senior government official said.
Crude Updates
Oil prices rallied again on Thursday to hit 13-month highs as concerns that a rare cold snap in Texas could disrupt U.S. crude output for days or even weeks prompted fresh buying.
Brent crude climbed 89 cents, or 1.4%, to $65.23 a barrel, touching its highest since Jan. 20, 2020. U.S. West Texas Intermediate (WTI) crude futures gained 66 cents, or 1.1%, to $61.80 a barrel, registering its highest since Jan. 8, 2020.
Asia Updates:
Asian stocks fell on Thursday as investors locked in profits on sectors that have outperformed recently in a sign of growing caution about the recent rally in global equities.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.42% but was still close to an all-time high. Chinese markets dipped on their first day of trade after the Lunar New Year break.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
IMF projects India's GDP growth rate at 11.5% and 6.8% for 2021 & 2022 respectively. This means India will be the fastest growing large economy in the world in the medium term. Going by the Q1 & Q2 trends, earnings growth also is likely to accelerate. This explains the upgrading of India by most foreign brokerages. Sentiments are positive as reflected in the sustained FPI inflows. Institutional investment is seeing rotation from the star performers of 2020 like pharma & IT to economy facing cyclicals like financials & industrials. However, the rise in crude is a macro- negative for India.
BSE Oil & Gas index added 4 percent supported by the GSPL, Gail, ONGC, IGL:
Rupee trades flat:
Indian rupee is trading flat at 72.73 per dollar,amid selling seen in the domestic equity market.It opened flat at 72.76 per dollar against Wednesday's close of 72.75.
Induslnd Bank raises Rs 2,021 crore on conversion of warrants
Induslnd Bank has raised Rs 2,021 crore of common equity capital through conversion of preferential warrants issued to the Promoter entities - Indusind International Holdings Limited (IIHL) and lndusind Limited (IL). The warrants were issued as an integral part of the merger with Bharat Financial Inclusion Limited in July 2019.
The Promoter entities had paid Rs. 673 crores at the time of subscription to the warrants and the balance amount of Rs. 2,021 crores was paid today.
Market Updates:
Benchmark indices are trading at day's low level. At 12:19 hrs IST, the Sensex is down 351.81 points or 0.68% at 51352.02, and the Nifty down 85.20 points or 0.56% at 15123.70.
Dr. Reddy's Laboratories launches Fluphenazine Hydrochloride Tablets in US market:
Dr. Reddy’s Laboratories announced the launch of Fluphenazine Hydrochloride Tablets, USP, a therapeutic equivalent generic version of Prolixin Tablets, 1 mg, 2.5 mg, 5 mg, and 10 mg, approved by the U.S. Food and Drug Administration (USFDA).
L&T Construction bags contract:
The construction arm of L&T has secured a significant order in the Nuclear sector from Nuclear Power Corporation of India Limited (NPCIL) for its Heavy Civil Infrastructure business in India to construct the Main Plant Civil Works of the Kudankulam 5&6 units (KKNPP 5&6 - 2X1000 MWe).
IndiaMART Intermesh share price rises 8% on QIP launch:
IndiaMART Intermesh share price rose more than 8 percent on February 18 after the B2B marketplace launched a qualified institutional placement (QIP ) to raise around Rs 1,100 crore.
“The indicative issue price for the QIP is Rs 8,615 per equity share which is at a 4.97 percent discount to the SEBI floor price,” sources told Moneycontrol.
NALCO share buyback opens on February 25:
National Aluminium Company (NALCO) share price gained over 2 percent on February 18. The company will buy back Rs 749-crore worth of shares, DIPAM Secretary Tuhin Kanta Pandey has said. The offer opens on February 25 and closes on March 10.
The government holds 51.50 percent stake in the company and would tender shares proportionate to its holding.
Nifty Metal index added 1 percent supported by the SAIL, Hindustan Copper, MOIL:
Gold prices off 2-1/2-month low:
Gold prices on Thursday clawed back from a 2-1/2-month low marked in the previous session, as U.S. Treasury yields retreated, lifting the non-yielding bullion's appeal.
RPP Infra bags orders
RPP Infra received a letter of acceptance for a new project - strengthening and widening (4-lane) of Triuneveli-Sengottai-Kollam Road of SH-39 at a contract price of Rs 176.58 crores. The company has set to book an order book of Rs 2,000.00 crore by the end of FY 21.
Anand Rathi of Hindustan Unilever:
We have updated our estimates factoring in latest numbers, we continue to remain positive on the company in the long run and maintain our 'buy' rating on Hindustan Unilever with a revised target price of Rs 2,524 per share.
Market Updates
Benchmark indices continue to trade flat in the morning trade with buying seen in the PSU bank, IT and Metal stocks.
At 10:24 IST, the Sensex was up 27.23 points or 0.05% at 51,731.06, and the Nifty was up 23.50 points or 0.15% at 15,232.40. About 1563 shares have advanced, 800 shares declined, and 113 shares are unchanged.
ICICI dierct:
The USDINR future partly continued its momentum and gained for a second day. Dollar index moving higher provided support to the pair but we feel upsides could be limited in the pair.
The dollar-rupee February contract on the NSE was at Rs 72.80 in the last session. The open interest declined almost 7% in the February series.
Rupee Opens:
Indian rupee openedflatat 72.76 per dollar on Thursday against Wednesday's close of 72.75, amid flat trading seen in the domestic equity market.
On February 17, rupee ended marginally lower at 72.75 per dollar against Tuesday's close of 72.69.
Nifty PSU Bank index added nearly 4 percent supported by the Central Bank of India, IOB, Bank of India, Bank of Maharashtra, UCO Bank, Union Bank of India:
Oil prices extend gains:
Oil prices rose as much as a dollar on Thursday, extending this week’s gains and hitting 13-month highs, as a cold snap sweeping Texas and surrounding regions shut at least a fifth of U.S. refining output and a million barrels of crude production.
Buzzing
Gail India share price gained 5 percent on February 18 after the company approved a share buyback plan.
The company is going to open its buyback programme on February 25 for up to 6,97,56,641 fully paid-up equity shares of face value Rs 10 each, representing 1.55 percent of the number of equity shares in the issued, subscribed and paid-up equity share capital of the company.
The share buyback will close on March 10.
The company will buy back shares from all the existing shareholders/ beneficial owners of equity shares of the company as on the record date—January 28, 2021—on a proportionate basis through the “tender offer” process at a price of Rs 150 per equity share for an aggregate consideration not exceeding Rs 1,046.35 crore.
Gainers and Losers on the BSE Sensex:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
Although the market has broken a significant base at 15240/51850, it has not fallen further, which indicates to us that the market has opened a window of consolidation. We could see the market trade between 15330/52150 and 14950/51250 levels for one or two days. Below 15170/51550 levels, Nifty could fall to 15080/51350 or 14980/51250 levels.
A decisive break of 15330/51330, would result in a sharp pullback to 15450/52500 levels. The strategy should be to buy in deep panic around 15000/51200 levels with a stop loss at 14900/50900 levels. The metal stocks should be on the watch list.
Market Opens:
Indian indices opened flat on February 18 on the back of mixed global cues.
At 09:16 IST, the Sensex was down 12.92 points or 0.02% at 51,690.91, and the Nifty was down 2.20 points or 0.01% at 15,206.70. About 862 shares have advanced, 346 shares declined, and 61 shares are unchanged.
