Indian market remained on the downward trajectory and key indices Sensex and Nifty settled with losses for the fifth consecutive session on February 27, the last day of February futures and options (F&O) series.
Investors continued selling riskier equities as concerns over coronavirus outbreak impacting global economic growth refused to fade away.
The Indian market remained in the lower terrain for the entire session but pared some losses. Equity barometers Sensex and Nifty rebounded 1 percent after slipping to a 4-month intraday low.
F&O expiry led to early morning weakness, but a recovery from the lows helped to erase some of the morning losses, experts pointed out.
Eventually, Sensex shut shop at 39,745.66, down 143 points or 0.36 percent, while Nifty ended at 11,633.30 with a loss of 45 points or 0.39 percent.
Midcaps and Smallcaps underperformed Sensex as their sectoral indices on BSE fell 0.65 percent and 0.83 percent, respectively.
In the last five consecutive sessions of losses, investors have become poorer by Rs 6.31 lakh crore as the cumulative market capitalisation of BSE-listed firms dropped to Rs 152.40 lakh crore on February 27 against Rs 158.71 lakh crore on February 19.
Vinod Nair, Head of Research at Geojit Financial Services said domestic and global equity market got impacted by weak expiry of monthly F&O and selling in the global market due to the spread of new coronavirus cases in some parts of the world. An increase in the number of new cases is changing the view and there are fears of some slowdown in the economy.
During the February F&O series, Nifty witnessed a fall of 3.34 percent while Sensex retreated 2.86 percent. Nifty Bank index fell 1.5 percent in the February series.
The market will continue to react to news around coronavirus in the near-term while Q3 GDP numbers will also be on investors' radar, said experts.
"We believe that the Indian markets would continue to track global developments with respect to coronavirus and could exhibit volatility in the near-term. The announcement of Q3FY20 GDP data on Friday will be a key domestic cue and will be actively watched by the market participants. In these uncertain times following a stock-specific approach would be more prudent," said Ajit Mishra, VP - Research, Religare Broking.
Top Nifty gainers: Sun Pharma, Britannia Industries, Titan
Top Nifty losers: Wipro, JSW Steel, ONGC
Stocks & Sectors:
Barring BSE Consumer Durables (up 0.70 percent) and Healthcare (up 0.20 percent), all sectoral indices ended in the red, with BSE Realty (down 2.09 percent) emerging as the top loser.
As many as 294 stocks, including Hero MotoCorp, IndusInd Bank, ITC, Larsen & Toubro, Mahindra & Mahindra and ONGC, hit their 52-week lows, while Adani Green Energy, Jain Irrigation, Vakrangee, Jaiprakash Associates and Reliance Power were among the 251 stocks that hit their lower circuits on BSE.
A volume spike of over 100 percent was witnessed in stocks such as HCL Tech, NCC, Titan and BEL.
Long Buildup was seen in stocks like Federal Bank, Sun Pharma, Siemens, Britannia and ICICI Prudential Life Insurance Company.
Short Buildup was seen in stocks like GMR Infra, Nalco, Punjab National Bank and NCC.
Stocks in the news:
RITES: Share price of RITES fell almost 6 percent on the day the state-owned engineering services company’s offer for sale opened for subscription. The government plans to sell a 10 percent stake through the two-day sale.
Alphageo: Alphageo (India) share price rose 3.63 percent after the company bagged a Rs 184-crore contract. The company received a notification of award (NOA) of contract from Vendanta for 2D and 3D seismic data acquisition services in Assam for an estimated contract value of Rs 184 crore, including taxes.
Lasa Supergenerics: Lasa Supergenerics share price jumped 5 percent after the company announced the acquisition of Harishree Aromatics And Chemicals Private Limited. In addition to the takeover of the manufacturing unit and all assets and liabilities, the amalgamation will result in an increase in market share, product and services diversification, the company said in a press release.
India Cements: Shares of India cements erased all gains of the day and ended 4 percent lower even as billionaire Radhakishan Shivkishan Damani and his brother Gopikishan Damani have increased their stake in the company for the second consecutive day on February 26.
Nifty decisively breached its 200-day simple moving average, placed at 11,687. It smartly recoiled from the intraday lows of 11,536 which depicted a Hammer formation.
Hammer is a bullish reversal pattern, which occurs at the bottom of a trend. This pattern appears after or during a downtrend. It is a single candlestick pattern.
"With the Nifty moving down further, traders will need to watch if the index can now hold above the next major supports at 11,579-11,614. Else, the current downtrend is likely to continue. Any pullback rallies could find resistance at 11,695-11,779," said Deepak Jasani, Head Retail Research at HDFC Securities.
Three levels: 11,537 | 11,660 | 11,783
Max Call OI: 11,700 | 12,000Max Put OI:
11,500 | 11,600