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Last Updated : Jan 17, 2020 06:06 PM IST | Source: Moneycontrol.com

Taking Stock: Investors book profit as Sensex crosses 42k; Mid & smallcap outperform

For the week ended January 17, the S&P BSE Sensex rose 0.83 percent while the Nifty50 ended with gains of 0.78 percent.


Indian market witnessed mild profit-taking at higher levels as Sensex hit a fresh record high of 42,063 on Friday, but failed to hold onto gains and closed below 42,000, but rallied about 1 percent for the week.

For the week ended January 17, the S&P BSE Sensex rose 0.83 percent while the Nifty50 ended with gains of 0.78 percent.

Close

Broader markets outperformed as the S&P BSE Mid-cap index was up 3.6 percent, and the S&P BSE Small-cap index closed with gains of 3.97 percent for the week ended January 17.

Sectorally, Nifty Media was up 5.5%, followed by Nifty Realty (up 4.3%), Nifty Pharma (up 3.6%), and Nifty FMCG (up 3.3%). The Nifty Midcap index rose nearly 4%, supported by gains in IndoStar (Up 25.5%), IRB Infra (up 21.3%), GNA Axles (up 19%), and Rallis India (up 17.2%),

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 12 points to 41,945 while the Nifty50 fell 3 points to close at 12,353 on Friday.

Action was seen in energy, healthcare, telecom and consumer durables while profit taking was seen in banks, metal, finance, public sector, and capital goods.

Broader market outperformed on Friday with Small-cap index closing with gains of 0.42 percent, and the S&P BSE Midcap index was up 0.54 percent on Friday.

More than 100 stocks hit a fresh 52-week high on the BSE that include names like MRF, Nestle India, SRF, Dr Reddy’s Laboratories, Torrent Pharma, and Divi’s Laboratories.

Experts feel that a decisive break above 12,400 in Nifty would trigger the next directional move. Market participants will react to heavyweights like Reliance Industries, TCS and HCL Tech results in early trade on Monday.

Top Nifty gainers: Grasim Industries, RIL, Dr Reddy’s Laboratories, and Bharti Airtel

Top Nifty losers: YES Bank, GAIL India, IndusInd Bank, Bharti Infratel

Stocks and sectors:

Sectorally, the S&P BSE Energy index rose 1.79 percent, followed by the S&P BSE Telecom index that gained 1.49 percent, and the Healthcare index was up 1.2 percent.

Profit taking was seen in the S&P BSE Bankex which fell 0.78 percent, followed by the S&P BSE Public Sector that was down 0.72 percent, and the S&P BSE Metal index closed 0.71 percent lower.

Volume spike of 100-600% was seen in stocks like BOSCH, Apollo Tyre, Bharti Airtel, Idea, MRF, Dr Reddy’s and Bharti Infratel.

Long Buildup – Torrent Pharma, Bharti Airtel, Dr Reddy’s, Glenmark Pharma

Short Buildup—Idea, SBI, Bharti Infratel, IOC

Events to track in the coming week:

More than 160 stocks on the BSE will declare their results for the week starting January 20 to January 24. Markets would react to TCS, RIL, and HCL Technologies results which declared their results for December quarter post market hours on Friday.

Saturday – HDFC Bank, Chennai Petro, as well as JSPL

Monday - 20th January 2020

•         Kotak Mahindra Bank Ltd
•         The Federal Bank Ltd

•         ICICI Securities Ltd

Tuesday – 21st January 2020
•         ICICI Prudential Life Insurance Company Ltd
•         HDFC Asset Management Company Ltd

•         Zee Entertainment Enterprises Ltd

Wednesday – 22nd January 2020
•         Axis Bank Ltd
•         Larsen & Toubro Ltd.
•         Asian Paints ltd.
•         SBI Life Insurance Company Ltd
•         AU Small Finance Bank Ltd

•         RBL Bank Ltd.

Thursday – 23rd January 2020
•         HDFC Life Insurance Co Ltd.
•         Biocon Ltd.
•         Canara Bank
•         Reliance Nippon Life Asset Management Ltd.

•         PVR Ltd.

Friday -  24th January 2020
•         Ultratech Cement Ltd.
•         JSW Steel Ltd.
•         Bank Of Baroda

Stocks in news:

Shares Vodafone Idea plunged 25 percent after the Supreme Court dismissed a review petition filed by telecom companies seeking relief from the Adjusted Gross Revenue (AGR) verdict.

Yes Bank share price declined more than 1 percent after Moody’s placed the stock's rating under review.

Karnataka Bank share price fell 5 percent after the company reported a poor set of numbers for the quarter ended December 2019.

Jayshree Tea rose 6 percent as the company decided to sell stake in two of its tea estates in Africa.

Piramal Enterprises share price rose 5 percent after the board approved selling of stake in the healthcare insights and analytics business.

Technical View:

Nifty formed a small bullish candle on weekly charts

Nifty50 remained listless for the entire week with a narrow range of 111 points

Nifty may come under selling pressure on a strong close below 12300 levels in next couple of trading sessions.

In such a scenario there is high possibility that near term trend may turn bearish with initial targets placed around 12050 kinds of levels, suggest experts

A stable move above 12300 shall atleast ensure sideways consolidation but without any proper trading opportunity on long side.

A strong close above 12390 can extend this rally towards 12500 kinds of levels.

For time being traders are advised to make use of weakness below 12300 to create short positions rather than buying dip, suggest experts.

Max Call OI: 12500, 12400

Max Put OI: 12000, 12200

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First Published on Jan 17, 2020 04:37 pm
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