Taking Stock: Bulls defend 11,800 level for Nifty; telecom, metals take a hit

The Indian equity market witnessed a rebound in the second half of the trading session on Thursday, November 14 as bulls pushed benchmark indices back in the green. The S&P BSE Sensex rallied by more than 100 points while Nifty50 closed above 11,850.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 170 points to 40,286 while the Nifty50 closed 31 points higher at 11,872 on Thursday.

In terms of sectors, action was seen in IT, consumer durables, finance, and banking stocks while profit booking was seen in telecom, metals, energy, and capital goods index.

Indian market started on a muted note tracking weak CPI numbers which rose to a 16-month high, and mixed cues from global markets. But, value buying at lower levels helped Nifty50 defend 11800 levels.

Moody's Investors Service on November 14 cuts India's economic growth forecast to 5.6 percent for 2019, saying government measures do not address the widespread weakness in consumption demand.

Experts feel that despite weakening macro data, the central bank is likely to focus on boosting growth in Asia’s third-largest economy. The government will unveil the September quarter GDP number towards the close of the month.

“Trend of the market is dictated by macro releases, as WPI inflation numbers indicated weak demand in the manufacturing segment. RBI is likely to give more focus on growth rather than rising inflation in the near term which may influence a few more rate cuts,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

“In terms of earnings growth, we notice that the strength of Q2 result slowed by the end of the season, which can put pressure on stock performance,” he said.

Top Nifty gainers: Bajaj Finance, Infosys, and ICICI Bank

Top Nifty losers: Vedanta, Indiabulls Housing Finance, Bharti Infratel

Sectorally, the S&P BSE IT index rose 1.07 percent, followed by the Consumer Durable index which was up 0.87 percent, and the Bankex closed with gains of 0.71 percent.

On the losing front, the BSE Telecom index plunged 2.7 percent, followed by the Metal index which remained under pressure due to slowdown in China, and Capital Goods index, both down over 1 percent each.

Volume Spike of 100-500 percent was seen in stocks like Bata India, Vedanta, Apollo Hospitals, Bharti Airtel, IOC, and Muthoot Finance.

Long Buildup: Muthoot Finance, Mahanagar Gas, Voltas

Short Buildup: Bharti Airtel Divi’s Laboratories, Aurobindo Pharma, and Bharti Infratel.

Stocks that hit the upper circuit: Edelweiss and The New India Assurance Company.

Lower circuit: As many as 7 companies hit lower circuit which includes names like Jain Irrigations Systems, Reliance Power, Indiabulls Real Estate, Indiabulls Integrated Services Ltd, Reliance Capital, Reliance Infra, and DHFL.

Aurobindo Pharma share price hit more than a 5-year low intraday on November 14 after the company received 14 observations from the US health regulator for its Pashamylaram unit. The stock closed 8 percent lower.

VST Industries share prices jumped over 6 percent to hit a 52-week high after Radhakishan Damani bought 2,70,000 shares in the company through a bulk deal.

Dixon Technologies: Dixon Technologies share prices ended close to 9 percent higher on November 14 after healthy earnings growth in Q2FY20 and strong management commentary.

Telecom stocks came under pressure after the Department of Telecom (DoT) had issued a notice to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court, according to an industry source. Bharti Airtel (down 1.5 percent), Bharti Infratel (down 4.4 percent), Vodafone Idea (down 20 percent).

SpiceJet down nearly 6 percent after the low-cost carrier reported widening of loss to Rs 462.6 crore in the three months ended September, mainly hit by expenses related to the grounding of Boeing 737 MAX planes and changes in accounting norms.

Mining major Vedanta reported a 44 percent year-on-year rise in consolidated profit at Rs 2,730 crore for the September quarter compared with Rs 1,900 crore in the same period last year which was slightly below analyst estimates. The stock fell by nearly 3 percent.

The Nifty50 formed a ‘Bullish’ candle which resembles a ‘Hammer’ kind of pattern on daily charts

It faced resistance near its 5-Days EMA placed at 11,888

A dip below 11,800-11,839 levels could be used to short the index with a target of 11,700

Three levels: 11,802 | 11,895 | 12,034

Max Call OI: 12,000, 11,800

Max Put OI: 11,600, 11,500