market managed to hold on to its crucial support of 10,812 levels, there could be the possibility of pullback rally in the coming session, experts said, adding 10,900 could be next crucial level for a further rally.
If it was not a terrible Tuesday, I would still say it was a gloomy one. Indian markets closed in red for the fourth consecutive day in a row on Tuesday. The Sensex BSE Sensex saw a cut of more than 200 points while the Nifty50 closed below 10850.
The final tally on D-Street – the S&P BSE Sensex closed 241 points lower at 36,153 while the Nifty50 ended at 10,831, down 57 points.
Small-caps continued to bleed while Mid-cap closed marginally in the red but over 400 stocks on the BSE hit their fresh 52-week low which includes names like CARE Ratings, Prataap Snacks, Cera Sanitaryware, BASF India, Tata Chemicals, Mahindra Logistics, Finolex Cables, Apollo Pipes, IIFL Holdings etc. among others.
The advance-decline ratio was in favor of losers. Of the 2,068 stocks traded on the NSE, 733 advanced, 1,002 declined, and 333 remained unchanged.
Lack of positive triggers is impacting the sentiment of the domestic equity market, and investors were cautious ahead of the key macro data.
India's retail inflation stood at 2.05 percent in January from 2.19 percent in December due to cheaper food items and fuel prices, data released by the government on February 12 showed.
India's factory output growth grew 2.4 percent in December after hitting a 17-month low of 0.5 percent in November, data released by the statistics office on February 12 showed.
On the institutional front, both FIIs and DIIs were net sellers in Indian markets to the tune of Rs 466 crore, and Rs 122 crore respectively, according to provisional data.
Big News:
On the earnings front, as many as 534 companies on the BSE will report their results for the quarter ended December which include names like 8K Miles, Adani Transmission, Bharat Forge, BOSCH, lemon Tree Hotels, Mcnally Bharat, NBCC, Prabhat Dairy, and Take Solutions etc. among others.
Bharat Forge: PAT likely to grow by 5.4% YoY to Rs 240 crore
Bosch: PAT likely to grow by 10% YoY to Rs 309 crore
(All the estimates are from Motilal Oswal)
Technical View:
Nifty formed a bearish candle for the 4th day in a row
The index slipped below 200-DMA, but as the market managed to hold on to its crucial support of 10,812 levels, there could be the possibility of pullback rally in the coming session, experts said, adding 10,900 could be next crucial level for a further rally.
Three levels: 10,823, 10910, 11000
Max Call OI: 11000, 11200
Max Put OI: 10400, 10700
Stocks in news:
The government's share sale in Axis Bank held through SUUTI witnessed a blockbuster start with institutional investors putting in bids worth over Rs 8,000 crore by lapping up 2.56 times the shares reserved for them on the first day of the offer for sale (OFS). The issue will open for retail investors on Wednesday.
Tata Group hospitality firm Indian Hotels Company on Tuesday reported a 50.99 percent rise in its consolidated net profit to Rs 170.03 crore for the quarter ended December 31.
Sun Pharmaceutical Industries, India’s largest drugmaker said its net profit jumped 286.1 percent to Rs 1,241.1 crore in the third quarter ended December 2018, beating analyst estimates by a wide margin, helped by a strong recovery of US generics business.
Technical Recommendations:
We spoke to HDFC Securities and here’s what they have to recommend:
Tech Mahindra: Buy| LTP: Rs 805.35| Target: Rs 885| Stop-loss Rs 760| Upside 10%
Kotak Mahindra Bank: Buy| LTP: Rs 1298| Target: Rs 1400 | Stop-Loss: Rs 1247 | Upside 8%
ITC: Buy| LTP: Rs 275| Target: Rs 298 |Stop-loss Rs.265 |Upside 8%
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