Traders’ Diary: Nifty trading range at 11,300-12,000
The expiry of February derivatives contracts kept the market volatile, traders said.
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Wall St slips into correction territory on alarm over coronavirus
Wall Street's main indexes fell for the sixth straight session and slipped into correction territory on Thursday, as the rapid spread of the coronavirus outside China intensified fears about the hit to economic growth and corporate earnings. The S&P 500 and Nasdaq are now more than 10% below their intraday record highs hit on Feb. 19, while the Dow Jones Industrials is 10% off its Feb.12 peak.
Bears tighten grip on D-Street; what's next?
As long as Nifty sustains above the 11,500 level, some sideways consolidation with a positive bias can be expected as they are already in oversold levels with a vertical fall from the high of 12,152 in last five sessions
- Mazhar Mohammad, Chartviewindia
Nifty formed a Hammer on candle. The occurrence of such a candle near the pattern support area increases the chances of the market finding a temporary support at current levels
- Milan Vaishnav, Gemstone Equity Research and Advisory
Market to remain volatile in the near term with focus on developments with respect to Covid-19. Nifty is expected to remain in the 11,500-12,000 range in March
- Rahul Mishra, AVP - Derivatives), Emkay Global
Overall structure shows that Nifty is not yet out of the woods. A minor bounce is plausible, which should be used as a selling opportunity. One can look to initiate a fresh short position near 11,700. On the downside, 11,533 and 11,450 will be key levels to watch out for in the near term
The bears yet again hammered Nifty, which breached the 11,600 support zone. However, the bulls managed to protect the important support at 11,530, which is 50% Fibonacci Retracement Support of the entire move from the lows of 10,637. Though the near-term trend remains on the downside, some relief rally can be expected. The 11,800 level is likely to act as a resistance on recoveries. Expect recovery to be short-lived and traders should look to have a sell on rise approach: Support is at 11,500-11,300 and resistance is in 11,800-11,900 zone
- Amit Shah, Technical Research Analyst, Indiabulls Securities
The RSI oscillator is showing a positive divergence on the daily chart. However a confirmation of the same is still pending. Going forward, if Nifty sustains above 11,665 level, then we may see some pullback towards 11,777 and then 11,880 levels in coming days. However a failure move beyond 11,665 and a hold below 11,535 could result in an extension of the ongoing correction towards 11,430 and then 11,333 levels
The Indian equity indices continued downward trend for a fifth consecutive session on the expiry day, echoing weak global sentiment. We believe that the Indian market would continue to track global developments w.r.t coronavirus and could exhibit volatility in the near term. The announcement of Q3FY20 GDP data on Friday will be a key cue and will be actively watched by the market participants. In these uncertain times following stock specific approach would be more prudent
- Ajit Mishra, VP - Research, Religare Broking
Sensex slides for 5th day, sheds 143 points; Nifty ends at 11,633
The domestic equity market got impacted by weak expiry of monthly F&O series and selling in global markets due to the spread of coronavirus cases. Till last week the market was of the view that coronavirus is going to have only a minimal impact on the global economy, as the situation in China was being contained. But an increase in the number of new cases is changing the view and there are fears of some slowdown in the global economy
- Vinod Nair, Head of Research, Geojit Financial Services
Sensex slides for 5th day, sheds 143 points; Nifty ends Feb F&O series at 11,633
Top 10 NSE gainers in afternoon session
Price as on 27 Feb, 2020 03:10 PM, Click on company names for their live prices.
BR Shetty-owned NMC ousts CEO after finding irregularities
NMC Health Plc, the Middle Eastern hospital operator targeted by short seller Muddy Waters Capital LLC, dismissed its chief executive officer and said advisers identified potential discrepancies in its bank statements. CEO Prasanth Manghat will be succeeded on an interim basis by Michael Davis, currently chief operating officer, with immediate effect, the company said in a statement late Wednesday. Chief Financial Officer Prashanth Shenoy has been granted extended sick leave.
European stocks slide again on pandemic fears
European shares fell again on Thursday, with travel stocks taking the biggest knock, as a jump in new coronavirus cases outside of China deepened fears of a pandemic that could dent global growth. Multiple blue-chip companies issued profit warnings, with Standard Chartered tumbling 3.4% after the Asia-focused bank said that a key earnings target would take longer to meet as the epidemic adds to headwinds in its main markets of China and Hong Kong.
Axis Bank appoints Puneet Sharma as CFO
Axis Bank on Thursday said its board has approved appointment of Puneet Sharma as Chief Financial Officer (CFO). His appointment will be effective from March 6, the private sector lender said in a regulatory filing. Sharma replaces Jairam Sridharan, who has resigned as the group executive and CFO of the bank, with effect from the close of business hours on March 5, it said.
RITES OFS non-retail quota subscribed 36% so far
The Offer for sale (OFS) of the transport engineering consultancy firm RITES has been subscribed 36 per cent as of 1.25 pm on Thursday. Only non-retail quota is open for subscription today. Out of total 1,00,00,000 shares on offer for non-retail investors, the issue has received applications for 72,69,366 shares. The state-owned company proposes to sell up to 1.25 crore equity shares, with a green-shoe option of a similar number of shares. It expects to raise a total of Rs 745 crore from the offer.
RITES, Avanti Feeds among top 10 NSE losers
Price as on 27 Feb, 2020 01:45 PM, Click on company names for their live prices.
Sensex recovers from day's low, still down 200 points
Crude oil futures plummet 2.54% on weak global cues
Crude oil futures on Thursday slumped 2.54 per cent to Rs 3,456 per barrel as speculators reduced their positions tracking weak trend overseas. Analysts said the fall in crude oil futures was mostly due to trimming of positions by participants amid weak demand.
On the Multi Commodity Exchange, crude oil for March delivery dropped by Rs 90, or 2.54 per cent, to Rs 3,456 per barrel with a business volume of 44,128 lots.
Media shares tumble; Jagran Prakashan slides 6%
Shares of media firms were trading with losses in Thursday's session.
Shares of Jagran Prakashan (down 6.09 per cent), Saregama India (down 4.61 per cent), Dish TV India (down 3.54 per cent), PVR (down 3.43 per cent) and Hathway Cable & Datacom (down 2.88 per cent) were among the top losers.
Asian stocks slide deeper as pandemic fears grow
Oil and Asian share markets extended losses on Thursday as the rapid global spread of the coronavirus kept investors on edge and seeking safety in gold and bonds, Reuters reported.
US stock index futures tumbled on Thursday as the rapid spread of the coronavirus outside China raised fears of a pandemic and sent investors scurrying to the perceived safety of gold and bonds.
The number of new infections in China, the source of the outbreak, was overtaken for the first time by fresh cases elsewhere on Wednesday, most notably in Italy and Iran.
Gold, silver gain as coronavirus fears mount
Bullion counters gained in the opening trade on Thursday as investors rushed to safe haven counters as new coronavirus cases grew rapidly outside of China.
The number of new infections inside China - the source of the outbreak - was for the first time overtaken by fresh cases elsewhere on Wednesday, with Italy and Iran emerging as epicentres of the rapidly spreading illness.
Italy has reported more than 400 cases and Iran has reported only 139 cases, but epidemiologists say the true number of cases must be many times higher.
Gold futures gained 0.34 per cent or Rs 146 to Rs 42,650 per 10 grams while silver futures edged 0.61 per cent or Rs 282 to Rs 46,858 per kg.
The selloff is not nearly as significant as one would have expected given this high level of uncertainty and that gives me some optimism
- Hugh Albert Johnson, Chairman and Chief Investment Officer of Hugh Johnson Advisors
Lasa Supergenerics jumps 5% after acquiring Harishree Aromatics Chemical.
Price as on 27 Feb, 2020 11:33 AM, Click on company names for their live prices.
Biocon shares fall as USFDA issues Form 483 for Bengaluru facility
Price as on 27 Feb, 2020 11:23 AM, Click on company names for their live prices.
Moody's assigns Caa1 rating to Lodha's proposed bond issue
Ratings agency Moody's Investors Service has assigned a Caa1 rating to the proposed US dollar senior secured bonds issue of Lodha Developers International, a wholly-owned subsidiary of Macrotech Developers. The outlook is negative. At the time of issuance, the proposed bonds will be guaranteed by MDL and Lodha Developers UK, the holding company of its London assets. Proceeds from the proposed bond will be used to partly refinance the company's $324 million backed senior unsecured bond maturing next month.
RITES falls 6% as OFS opens for subscription
Shares of RITES crashed nearly 6 per cent in Thursday’s trade after company's offer for sale opened for subscription today. The company has set the floor price for the offer at about 6 per cent discount to the prevailing prices.
The state-owned company proposes to sell up to 1.25 crore equity shares, which is 5 per cent of the total issued and paid-up equity share capital of the company. The company has kept the option open to additionally sell up to 1.25 crore equity shares if the issue is oversubscribed.
63.5 lakh shares of Bharti Infratel traded in a block deal
Price as on 27 Feb, 2020 09:22 AM, Click on company names for their live prices.
OPENING BELL | Sensex drops 150 points, Nifty slips below 11,650; RITES falls 5%, YES Bank gains 3%
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Pre-open session: Sensex rise 220 points, Nifty tops 11,700; rupee trades at 71.64 against US dollar
Singapore trading sets stage for gap down start
Nifty futures on the Singapore Exchange traded 93 points, or 0.79 per cent, lower at 11,725, indicating a negative start for Dalal Street.
Tech view: 11,800 immediate hurdle for Nifty
Nifty50 fell for the fourth straight day on Wednesday, forming a bearish candle on the daily chart. Analysts see a higher chance of the index moving southwards. The 11,800 level may prove the immediate resistance on the upside. As long as it holds below its immediate resistance at 11,800, the bears will have an upper hand on the market and we may see a further correction towards 11,615 and 11,500 levels,” said Chandan Taparia of Motilal Oswal Securities.
Asian markets extend losses
Asian share markets slipped on Thursday, struggling to find a footing as the rapid global spread of the coronavirus left investors on edge and seeking safety in gold and bonds. MSCI's broadest index of Asia-Pacific shares outside Japan traded either side of flat. Australia's S&P/ASX 200 was 0.5 per cent lower, for a loss of more than 6 per cent this week so far. Japan's Nikkei fell 1.4 per cent.
US stocks down for fifth day
The S&P 500 fell for a fifth straight day on Wednesday and while its decline was slower than the last few days, the session was volatile. The Dow Jones Industrial Average fell 123.77 points, or 0.46 per cent, to 26,957.59, the S&P 500 dropped 11.82 points to 3,116.39 and the Nasdaq Composite added 15.16 points, or 0.17 per cent, to end at 8,980.78.
Oil falls for fifth day as coronavirus spreads
Oil prices fell for a fifth day on Thursday to their lowest since January 2019 as a growing number of new coronavirus cases outside of China deepened fears that the global economy will slow and lower crude demand. Brent crude was down 77 cents, or 1.4% at $52.66 a barrel.
FIIs sell Rs 3,336 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 3336.60 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 2,785.67 crore, data suggests.
FPIs press exit button on D-Street
Foreign investors are rushing out of Dalal Street amid growing aversion to riskier assets in the wake of rapid global spread of the Covid-19 virus. The domestic stock market extended losses to the fourth day on Wednesday as FPIs stepped up sale of Indian shares, which dragged Sensex to close below 40,000 for the first time since October. FPIs offloaded shares worth Rs 3,337 crore on Wednesday, taking their total sales to over Rs 6,900 crore in three days. Had domestic institutions not bought shares worth Rs 2,786 crore, the losses would have been sharper.