Federal Reserve policymakers were cautiously optimistic about their ability to hold interest rates steady this year, minutes of the central bank's last policy meeting showed, even as they acknowledged new risks caused by the coronavirus outbreak. The readout on Wednesday of the policy discussion, at which policymakers unanimously voted to keep interest rates unchanged in a target range of between 1.50% and 1.75%, also showed Fed officials were skeptical about any big rethink of the central bank's inflation target.
The S&P 500 and the Nasdaq hit fresh highs on Wednesday on signs of slowing coronavirus infections and expectations that China would take more measures to bolster its virus-hit economy.
The number of new coronavirus cases dropped for the second straight day in China although global health officials cautioned it was too early to predict how the epidemic will play out and many viewed the official data with skepticism.
Gold prices moved above $1,600, a seven-year high amid concerns over the economic impact of Chinese epidemic. However, we sense that the market will eventually start pricing in the fact that the worst of the Coronavirus crisis seems to be over, with new infection rates and deaths peaking. We sense that the market will gradually harbour expectations that Chinese efforts to stimulate the economy will front load demand into the second half of the year. On price outlook, gold will retreat lower from the current highs once the adverse effects of coronavirus fades and global economy stabilises
- Hitesh Jain, Lead Analyst, YES Securities
The ongoing upswing is not backed by a buy signal on any of the momentum oscillators on the daily chart. Initially, it needs to get past and sustain above 12,178 level and in such a scenario we can eventually expect the recent highs of 12,246 levels to be taken out
- Mazhar Mohammad, Chartviewindia.in
The bounce that started towards the end of Tuesday’s session turned out to be a sharp one, as the index retraced 61.8 per cent of the previous fall from 12,246 to 11,908. Over there, the index seems to have formed a Small Ending Diagonal pattern on the intraday chart, suggesting that the pullback could be near its maturity
- Gaurav Ratnaparkhi, Sharekhan
Bulls make a comeback, what lies ahead?
A bullish momentum after a ‘Hammer’ candle on Tuesday is a positive sign. We also observed the formation of a Bullish Island Reversal pattern on the daily scale, which bodes well for the bulls. If Nifty holds above 12,100, then we may see a bounce towards 12,200 and then 12,300. On the flipside, major support is now shifting higher to 12,030
On the lower side, Nifty tested 11,900 before bouncing back to the 12,100 level. Some unwinding in option positions indicated increased volatility in the near term. Going ahead, we expect the index to conquer 12,450-12,500. Bank stocks look attractive at current levels, while metal stocks can be accumulated gradually. For investors, buying on dips is advisable, while traders can do selective buying in the banking space
- Sahaj Agrawal, Head of Research-Derivatives, Kotak Securities
Nifty sustained above the key hurdle of the 12,060 level, which signals a possibility of further upside. We observed the formation of a Bullish Island Reversal pattern as per intraday timeframe of 60 mins chart. This pattern indicates a short-term bottom reversal. The potential upside pattern target is at 12,246, which could be achieved in the next few sessions
The bulls and bears are in a tug of war for dominance. Market breadth was strong after several sessions. Nifty is meandering near the resistance zone, which is a make or break situation. If bulls were to overpower, they will have to push the index well beyond 12,100 on a sustainable basis. A closing above 12,100 will be important to watch out for. We continue to remain bullish on pharma, especially midcaps. Expect stock-specific bullish activity to continue while the index finds a direction. support is at 12,100-12,000 and resistance is in 12,100-12,250 zone
- Manav Chopra, Head Research - Equity, Indiabulls Ventures
Nifty could rise further on the back of the confirmed Bullish Hammer pattern. Added to this, Wednesday’s action led to the formation of ‘Bullish Morning Star’. This has positive implications on the near-term basis. The index could move up to 12,250-12,290 over the next few sessions
The market rebounded sharply and gained over a per cent, after four successive days of fall. Dalal Street is currently dancing to the global tunes and we do not see this scenario changing anytime soon. Traders should keep a close watch on the world markets for further cues. Since we’re seeing a mixed trend on the sectoral front, the focus should be on stock selection and trade management
- Ajit Mishra, VP - Research, Religare Broking
Couple of fancied stocks listed a few months ago such as IRCTC and Affle exhibited tremendous momentum in today's trade. Among the PSU pack, we witnessed buying interest in the four defence-related stocks
- S Ranganathan, Head of Research, LKP Securities
The market was positive on hopes that the government is planning to consider some relief measures for the ailing telecom players. On the global front, there was a fall in new virus cases and close to 80 per cent of Chinese enterprises are back to work, indicating a possible economic recovery
- Vinod Nair, Head of Research, Geojit Financial Services
CLOSING BELL: Sensex snaps 4-day losing streak, soars 429 points; Nifty tops 12,100; Voda Idea rallies 40%, Aurobindo Pharma 20%
Palladium surged above $2,800 an ounce, extending its record-breaking rally on forecasts for a widening deficit. Gold is trading near the highest level since 2013 on concerns over the spread of the new coronavirus and how it’s impacting global growth.
Kotak Mahindra Bank gets RBI nod for trimming promoters' stake
Private sector Kotak Mahindra Bank on Wednesday said the Reserve Bank has granted its final approval for reducing promoters' stake in the bank to 26 per cent. On January 30, the bank had informed about RBI's in-principle acceptance for reducing promoters' shareholding to 26 per cent of the paid-up voting equity share capital (PUVESC) of the bank within six months from the date of final approval of the regulator.
Madhabi Puri Buch frontrunner for Sebi chief post
2 govt secretaries also shortlisted for Sebi Chief post: Cogencis
Gold futures gain Rs 85 to Rs 41,505 per 10 gm
Gold prices on Wednesday gained Rs 85 to Rs 41,505 per 10 gram in futures trade as speculators increased their bets tracking positive trend overseas. On the Multi Commodity Exchange, gold contracts for April traded higher by Rs 85, or 0.21 per cent, to Rs 41,505 per 10 gram in a business turnover of 3,191 lots.
Japanese shares bounced back on Tuesday as sentiment improved slightly after Wall Street's major indexes closed off their lows and Apple trimmed its losses stemming from a sales warning, although the health crisis in China remained an overhang, Reuters reported.
RIL jumps over 2% as its stake sell talks with Aramco gather pace
Price as on 19 Feb, 2020 12:42 PM, Click on company names for their live prices.
Both Nifty midcap and small cap indices have formed a hammer like candle at the lower band of the past four week’s consolidation, indicating an impending trend reversal. The ongoing healthy consolidation makes us believe both indices are forming a higher base, paving the way for acceleration in its relative outperformance compared to the Nifty in coming sessions
- ICICIdirect Research
Asia stocks rise on lull in virus worry, euro still weak
Asian shares and U.S. stock futures rose on Wednesday, as investors tried to shake off worries about the coronavirus epidemic after a slight decline in the number of new cases, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan recovered from a shaky start to rise 0.4 per cent
Aurobindo Pharma jumps 18% on EIR from USFDA
Price as on 19 Feb, 2020 11:51 AM, Click on company names for their live prices.
Shree Cement overvalued, but market sees it as a growth stock
- Sameer Narayan
IRCTC surges 7%, logs a new all-time high
Price as on 19 Feb, 2020 11:33 AM, Click on company names for their live prices.
Just In | Disinvestment Department source says even scaled down FY20 target difficult to meet, reports Cogencis
35 stocks hit 52-week highs on NSE
Around 35 stocks rose to touch their 52-week highs on NSE in Wednesday's session.
Among the stocks that touched their 52-week highs were Abbott India, AGC Networks, Apollo Hospitals Enterprise, AU Small Finance Bank, Deepak Nitrite, Escorts, INOX Leisure, Granules India, ICICI Securities, Ircon International, Kotak Mahindra Bank, United Spirits, PVR and Vaibhav Global.
Shares of Vodafone Idea advanced over 11 per cent in Wednesday’s trade after reports that the government is unlikely to invoke the company’s bank guarantees for now even as the officials of the telecom and finance ministries met Cabinet secretary Rajiv Gauba to discuss ways to ensure that the sector retains three private players.
The scrip traded 5.28 per cent higher at Rs 3.19 at around 9.40 am. It surged 11.55 per cent in early trade to hit a high of Rs 3.38.
“First round of meetings happened on Tuesday… The government could consider postponing or staggering other payments due to it, in order to give some flexibility to telcos to cough up money towards AGR (adjusted gross revenue) dues,” ET said quoting an official. “These are just very initial discussions.”
Forex market closed on account of Chhatrapati Shivaji Maharaj Jayanti
Voda Idea, YES Bank, Tata Motors most active stocks on NSE
Price as on 19 Feb, 2020 09:53 AM, Click on company names for their live prices.
Shree Cement rallies 5% on inclusion in Nifty50; YES Bank drops
Shares of Shree Cement advanced 5 per cent in Wednesday’s trade on inclusion in the benchmark NSE Nifty index. Shree Cement will replace private lender YES Bank in the benchmark index Nifty50 from March 27, NSE Indices, a subsidiary of the National Stock Exchange (NSE), said on Tuesday. On the other hand, YES Bank was down 1.71 per cent at Rs 34.45.
Nifty futures on the Singapore Exchange traded 23 points, or 0.19 per cent, higher at 12,041.50, indicating a positive start for Dalal Street.
Tech view: Nifty forms Hammer candle
Nifty50 on Tuesday fell below the psychological mark of 12,000 level despite some late recovery. The index formed a ‘Hammer’ candle on the daily chart, suggesting buying at lower levels. Analysts said a fall below 12,000 is a negative despite efforts by the bulls to defend the level. Immediate resistance is seen at 12,030.
Asian stocks rise on fall in virus cases
Asian shares and US stock futures edged cautiously higher on Wednesday as investors tried to shake off worries about the coronavirus epidemic following a slight decline in the number of new cases. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.01 per cent. Australian shares were up 0.14 per cent, while Japan's Nikkei stock index rose 0.61 per cent.
US stocks closed mixed
US stocks ended mixed after a sales warning from Apple left investors assessing the impact of the coronavirus outbreak on US companies. The Dow Jones Industrial Average index fell 165.89 points, or 0.56 per cent, to 29,232.19, the S&P500 index lost 9.87 points, or 0.29 per cent, to 3,370.29. The Nasdaq Composite added 1.57 points, or 0.02 per cent, to 9,732.74, eking out a record closing high.
Oil prices edge higher in early trade
Crude oil traded slightly higher on Wednesday, but gains were capped by the widening economic impact from the coronavirus epidemic. Brent crude rose by 6 cents at $57.81 a barrel, while WTI crude gained 7 cents to $51.97 a barrel.
Nifty rejig: YES Bank out, Shree Cement in
Shree Cement will replace private lender Yes Bank in the benchmark index Nifty 50 from March 27, NSE Indices, a subsidiary of the National Stock Exchange (NSE), said on Tuesday. Further, Vodafone Idea, Ashok Leyland, Indiabulls Housing Finance, L&T Finance Holdings, and Shree Cement will be dropped from Nifty Next 50, NSE Indices.
DIIs sell Rs 309 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 74.39 crore on Tuesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 309.43 crore, data suggests.
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