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Taking Stock: Bulls make a comeback! Sensex regain 41k, Nifty nears 12,150

Volatility likely to rise ahead of F&O expiry, suggest experts.

January 29, 2020 / 06:26 PM IST

Bulls made a comeback on January 29 after two straight days of selling pushing the S&P BSE Sensex back above 41,000, while Nifty50 reclaimed 12,100 levels. It closed above its 50-Days EMA placed at 12,088 levels.

Thanks to the positive global cues and expectations of dovish commentary from the US Fed drove rally on D-Street ahead of F&O expiry due on January 30.

"Recovery in global market due to drop in epidemic concern and expectations of dovish stance from FOMC are providing a relief to the domestic market. Though the significance of Budget on the market may have reduced during the decade, this time the importance is substantial due to very high expectations,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

“Budget will be a blockbuster one even if a decent part of wish-list is fulfilled, the event-risk is high this time," he said.


Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 231 points to 41,198 while the Nifty50 rose 73 points to close at 12,129 on Wednesday.

Sectorally, action was seen in FMCG, capital goods, metal and auto index while profit taking was seen in the consumer durable index.

The broader market underperformed as the S&P BSE Smallcap index was up 0.12 percent while the S&P BSE Midcap index was up 0.49 percent.

Top Nifty gainers: Bharti Infratel, Nestle India, Bajaj Finance, and Tata Motors

Top Nifty losers: HDFC, Yes Bank, Dr Reddy’s Laboratories, TCS and Eicher Motors

Stocks and sectors:

Sectorally, the S&P BSE FMCG index rose 1.4 percent, followed by the S&P BSE Capital Goods index that was up 1.23 percent, and the S&P BSE Metal index rallied 0.86 percent.

The S&P BSE Consumer Durable index was down 0.48 percent.

Volume spike of 100-500% was seen in Godrej Consumer Products, Bajaj Finance, Tata Chemicals, and Cummins India.

Long Buildup – Bosch, IOC, Shriram Transport, Dabur, Berger Paints

Short Buildup – Godrej Consumer Products, ICICI Bank, UltraTech Cements

Over 80 stocks on the BSE rose to fresh 52-week high that include names like Nestle India, Bajaj Finance, Dixon Tech, Info Edge, Divis Laboratories, GSK Pharma, Pidilite Industries, and Aarti Industries.

Stocks in the news:

Bajaj Finance: Shares of Bajaj Finance rallied over 5 percent to hit record high on January 29 after earnings beat analyst expectations, though there was a dip in provision coverage ratio.

Ircon International: Ircon International share price jumped 6 percent on January 29 with the company considering division of its equity shares.

Tata Motors shares gained more than 6% after the auto maker launched its electric sports utility vehicle (SUV) Nexon EV on Tuesday, pricing it aggressively at Rs 13.99 lakh onwards (ex-showroom, all-India), the cheapest in its class.

Reliance Power fell nearly 5% after YES Bank sold over 3 crore shares in an open market transaction on Tuesday.

Technical View:

Nifty formed a small bodied candle on the daily charts

It closed above its 50-Days EMA placed at 12088 but below 50-DMA placed at 12,131

Pre Budget rally could get capped near 12200 levels going by options data

Volatility likely to rise ahead of F&O expiry, suggest experts

If Nifty manages to sustain above 12170 levels then it should ideally head towards 12272 levels.

Similarly on the downsides 12024 shall remain critical support breach of which shall drag down the indices towards 11900, suggest experts.

Three levels to track – 12103, 12169, 12200
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Jan 29, 2020 04:20 pm
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