Stock Market closing: Weak US retail data hits Indian markets; Sensex, Nifty close down by 0.2%
The 50-stock Nifty traded below 10,800 and market experts are speculating a bear run giving support to the markets at 10,690 marks.
On account of weak US retail sales data and rise in global crude oil prices, the Indian indices got hit in early trade session on Friday. Howver noticed some recovery at the weekend closing. The BSE Sensex closed down by 67 points to 35,808.95 levels while the 50-stock Nifty closed just 20 points down to 10,726 levels. However the Indian markets got a big setback due to week global cues in the morning. Stocks of Inibeam Avenues, IndiaBulls Real EstateIL&FS Transportation and Shankara Builders were among the top gainer while Cox 7 King, CG Power, Deepak Fertiliser and Dewan Housing were the major losing stock on Friday intraday trade. Shares of Inibeam Avenues shot up by more than 11 per cent in early morning trade session.
Simi Bhaumik, a SEBI registered Technical Equity Analyst told Zee Business, "Nifty below 10,800 is bearish and now the market is in the range of 10,500 to 10,950 levels."
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Healthcare leads the bleeding block
Bleeding over 3 per cent in the intraday trade, healthcare index led the bleeding sectors on Friday. Healthcare major Lupin crashed near 5 per cent, Pfizer stock nosedived by more than 3 per cent, Shares of Novartis too went off by more than 3 per cent, Piramal Entreprises stock went downward by near 2.5 per cent, Sun Pharma shares witnesed heavy sell-off pressure by losing over 4.5 per cent, Alkem Lab stocks went southward by more than 1.5 per cent while Aurobindo Pharma crashed by near 3.4 per cent.
Rally in utility stocks continue
Utility major Adani Power shot up by more than 5 per cent, A2Z Infra Engineering went up by more than 5.5 per cent, GAIL stocks surge over 2 per cent, NTPC shares went up by nera 4 per cent, Power Grid Corporation of India stocks rose by 3.4 per cent, Tata Power shot up by around 1.5 per cent while Torrent Power was up by around 1.2 per cent.
BSE CPSE continue to rise
The BSE CPSE index has shot-up by more than 1.5 per cent in early intraday trade. Bharat Dynamics shares skyrocketed by more than 13 per cent, Hindustan Flurocarbon stock went up by more than 9.5 per cent, BPCL share went up by more than 2.5 per cent, Coal India stocks are up by near 1 per cent, Engineers India shares rose by more than 2.5 per cent, GAIL counter too rose by more than 1 per cent, Hindustan Aeronautics stock was up by more than 4 per cent, NHPC share surge by more than 1 per cent while NTPC and NALCO jumped by more than 3 per cent.
Top Pics by IndiaNivesh for Feb 15
IDBI BANK: BUY
The stock is turning from the oversold zone on the daily chart as per the momentum oscillator RSI.
The stock has managed to clear the highs of previous 5 trading session which indicates the possibility of bounce.
The RSI Smoothened oscillator on the daily chart is on the verge of a positive crossover.
Thus, we advise traders to go long in the stock near 44.5 with a stop 42.4 for the target of 49. (2 to 3 Days)
TATA GLOBAL: BUY
The stock is turning from lower end of the falling channel on the daily chart.
Also, we are witnessing a breakout on the hourly chart which indicates bounce.
We advise traders to go long in the stock near 188 with a stop 183 for the upside target of 198. (3 to 5 Days)
Market overview by IndiaNivesh
Post yesterday’s correction, Nifty was forced to sneak below the placements of 50 DEMA & 100 DEMA. Now, as displayed on the daily chart, index is hovering just above the placements of 200 DEMA. At the same time, the support coincides with 78.6% Fibonacci retracement levels of previous rally and also there is a trend line support there. Thus, 10680 - 10660 could act as a strong support in the upcoming session. A breach of the same would extend the selling towards 10630.
On the upside, bullish sentiment would now resume 10800 mark. Traders can add aggressive long in index futures once Nifty starts trading above the mentioned resistance level. From the stock front, one should continue to stay hedge and avoid overleveraged positions since the heavy weights are yet to correct.
IT and Tech stocks in focus
Apart from that pharma and IT and Tech stocks are expected to perform better. Hence, traders are expected to go by the minute details.
Niharika Ojha, Research Analyst at Narnolia Financial Advisors told, "Investors can think of taking buy position in technology stocks like Infosys, HCL Tech, MPhasis, MindTree, Tata Elxsi and Persistent."
Buy Coal India Ltd. for 40% gains, advises Narnolia Financial Advisors
Coal India delivered strong set of numbers with revenue at Rs 25046cr (up 15% YoY and 14% QoQ) on the back of significantly higher e-auction realisation at Rs 2847/t (up 42% YoY and 10% QoQ) and strong FSA realisation at Rs.1334/t (up 13% YoY and 2% QoQ). Off take volume came in at 153.8mt (up 1% YoY and 12% QoQ). Share of FSA increased to 88% of total off take in 3QFY19 (vs.80% in 3QFY18 and 85% in 2QFY19) and e-auction share fell to 10% (vs.17% in 3QFY18 and 13% in 2QFY19) but was better than expected. Coal dispatch to power sector increased to 126mt (up 3% YoY, 14% QoQ), however better than expected e-auction volume as well as realisation helped the company to robust performance. Going ahead investors believe company will post strong set of number in 4QFY19 as well, driven by strong realization in both FSA and e-auction. Furthermore, improvement in coal inventory level at power plants from 6 days at the end of Oct’18 to 12 days in Jan’19 would leave more room for improving e-auction volume.
On suggestion to the CIL counter Sagar Sharma, Research Analyst at Narnolia Financial Advisors told, "Fundamentals of the counter suggests and upside potential for 40 per cent. An investor can take buy position in the stock for the target of Rs 309/stock levels." Currently, the stock is hovering around Rs 220/counter levels.
Buy Dhanuka Agritech for 24% gains, advises Elara Securities
Dhanuka Agritech revenue declined by 2% YoY to Rs 2.2bn, which was below our estimates of Rs 2.3bn and Consensus estimates of Rs 2.4bn. Volume contracted by 6% on less sowing during Rabi season & pest infestation and high channel inventory. Revenue dragged, given higher-than-normal sales return of Rs 490mn in Q3FY19. Adverse currency movements, rising raw materials prices and an inability to pass on the cost due to weak farmer sentiments led to a 670bp drop in gross margin to 36.6%. Consequently, EBITDA margin contracted 600bp YoY to 10%. EBITDA was down 39% YoY at Rs 215mn and was below our estimates of Rs 362mn. Adjusted PAT fell by 49% YoY to Rs 146mn.
On suggestion to the market investors in regard to the counter Pratik Tholiya, Analyst at Elara Securities told, "Fundamentals of the counter suggests an upside potential for 24 per cent. An investor can take a buy position in the stock for the target of Rs 466/stok levels." Currently, the stock is hovering around Rs 376/counter levels.
Accumulate Prestige Estates Projects at Rs 235/stock levels, advises Elara Securities
Prestige Estates Projects reported revenue of Rs 11bn, down15% YoY, affected by IND AS 115 implementation in Q1FY19. In absolute terms, EBITDA grew by 35% YoY to Rs 3.4bn as projects booked (Kingfisher Tower & Royale) in Q3 were high margin in nature. Pre-sales was up 79% YoY and down 17% QoQ to Rs 9.4bn (Prestige’s share), primarily aided by existing projects and continued momentum in Jindal City project launched in Q4FY18. Also, collections were steady at Rs 9.3bn, flat YoY. In Q3, Prestige launched 1.6mn sqft of new projects at Bangalore and Hyderabad. Rental income was up 14% YoY at Rs 1.87bn, led by consolidation of Capitaland stake.
On suggestion to the investors in regard to the realty counter Param Desai, Analyst at Elara Securities told, "The fundamentals of the counter indicating an upside potential of 18 per cent. We recommend investors to accumulate the counter and book profit at Rs 235/stock levels." Currently, the stock is hovering around Rs 199/counter levels.
Weak US data may hit Indian bourses
US retail sales tumbled 1.2 per cent in December, recording their biggest drop since September 2009 as receipts fell across the board. It's effect on the Indian indices would become visible in pre-trade session between 9:00 AM to 9;15 AM.
The shockingly weak report led to economic growth estimates for the fourth-quarter being cut to below a 2.0 per cent annualised rate, with the Atlanta Fed forecasting a 1.5 per cent growth, much below its previous forecast of 2.7 per cent about a week ago.
Asian stocks fell on weak US retail data
Asian stocks fell on Friday after weak US retail sales figures raised fresh doubts about the strength of the world`s largest economy, offsetting optimism towards trade talks between the United States and China.
Also casting a shadow, the White House said US President Donald Trump will declare a national emergency to try to obtain funds for his promised US-Mexico border wall, drawing immediate criticism from Democrats.
A wait-and watch mood ensued for markets ahead of the results of a meeting on Friday between the Trump administration's top two negotiators and Chinese President Xi Jinping in Beijing.
There has been no decision to extend a March 1 deadline for a deal, White House economic adviser Larry Kudlow said on Thursday.
MSCI`s broadest index of Asia-Pacific shares outside Japan, which had scaled a four-month high midweek on factors including expectations for reduced US-China trade tensions, was down 0.8 per cent.
The Shanghai Composite Index lost 0.6 per cent. Japan's Nikkei dropped 1.2 per cent and South Korea's KOSPI shed 1.5 per cent.
In the United States, the S&P 500 lost about 0.3 per cent on Thursday, a day after it hit a 10-week high on rising hopes that Washington and Beijing could reach a trade deal.