Nifty closes below 12,200 despite govt#39;s Rs 100-lakh-cr infra boost

Indian market witnessed profit booking at higher levels and both Sensex and Nifty pared morning gains and closed near their intraday lows on Wednesday.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 52 points to 41,306 while the Nifty50 ended with gains of 14 points at 12,182. It hit an intraday high of 12,222 levels.

Sectorally, action was seen in power, infrastructure, IT and capital goods stocks while profit-taking was seen in consumer durable, auto and telecom names.

The S&P BSE Midcap index closed almost flat with gains of 0.2 percent while the Smallcap index was up 0.64 percent.

Experts are of the view that the market got a boost from the government’s infrastructure boost, but gains were capped due to muted global cues, mixed auto sales numbers and worries about the fiscal deficit.

“Market traded positive in the first leg of trade based on the government’s plan for major investment in infrastructure expenditure. But given concerns over fiscal prudence and plans to use funds from centre, state and private limited the gains due to lack of liquidity,” Vinod Nair, Head of Research at Geojit Financial Services told .

“In the near term, auto stocks will be in focus based on monthly sales data which is likely to paint another dismal picture due to muted demand,” he said.

Top Nifty gainers: Vedanta, NTPC, Power Grid and Adani Ports

Top Nifty losers: Zee Entertainment, IndusInd Bank, Eicher Motors and Titan Company

Stocks & Sectors:

Sectorally, the S&P BSE Power index rose 1.7%, followed by the S&P BSE Infra index which gained 0.79%, and the S&P BSE IT index was up 0.6%.

On the other hand, profit-taking was seen in the S&P BSE Consumer Durable index which fell 1.4%, followed by the S&P BSE Auto index that fell 0.5%, and the Telecom and Bankex index closed with losses of 0.3%.

Volume spike of 100-400% was seen in Adani Power, MFSL, Titan Company, Escorts, and Adani Ports.

Long Buildup – CESC, Power Grid, SRF, Torrent Power

Short Buildup – Titan Company, Escorts, ONGC, JustDial

Stocks in the news:

Infras stocks remained in focus after the government announced a detailed road map for Rs 100 lakh cr worth of infrastructure investment over FY20-25. SREI infra, Adani Ports, Power Grid, NTPC, KNR Construction were among top gainers.

Dishman Carbogen: Shares of Dishman Carbogen Amcis fell 6 percent on January 1 after a media report indicated that the Income Tax Department found unaccounted cash of over Rs 160 crore during the raid. While clarifying on the I-T raid, JR Vyas, MD of Dishman said there was one (raid) which happened 1-2 weeks back, and after that nobody has come or contacted.

Auto stocks end mixed: The Auto index shed half a percent at close on January 1 after auto stocks ended on a mixed note. Escorts shed 4 percent after tractor sales missed expectations while M&M shares gained a percent after tractor sales beat expectations. Maruti shares shed close to a percent. Sales grew 3.9 percent at 1.33 lakh units YoY. Eicher Motors shed 2 percent Bajaj Auto and Hero MotoCorp are the other losers.

Prince Pipes: Shares of Prince Pipes and Fittings gained more than 2 percent on January 1 after promoters released a pledge on all their shares. Express Infra Projects LLP had issued bonds aggregating up to Rs 200 crore, of which Rs 191.5 crore was outstanding as on October 31, 2019.

Adani Ports: Shares of Adani Ports and Special Economic Zone gained 3 percent on January 1 ahead of the potential acquisition of Krishnapatnam Port. The Adani Group company is expected to acquire 72 percent stake in Krishnapatnam Port, reports CNBC-TV18 quoting unnamed sources.

Adani Green: Share price of Adani Green jumped 5 percent on January 1 after the firm commissioned 75 MW wind power project.

Rating Upgrade Fails To Lift Titan, Stock Closes Below 200-DMA Of 1,173

Technical View:

The Nifty50 formed a bearish candle on daily charts while MACD made a bearish crossover which might cap upside.

The last time when Nifty made a bearish crossover was on 29 November and Nifty made a bottom around 11840 levels before bouncing back

Nifty faced resistance around the 5-Days EMA placed at 12,197

It looks like consolidation is likely to continue if Nifty closes below 12150 kinds of levels this week. In such a scenario ideal target shall be around 12050 kinds of levels.

Upsides looks limited, for time being, traders are advised to avoid buying the dip and remain short with a stop above 12290 levels on closing basis where as fresh shorting can be considered below 12150 levels, suggest experts.

Three levels: 12165, 12222, 12300

Max Call OI: 12500, 12200

Max Put OI: 12000, 11500Get access to India’s fastest growing financial subscriptions service Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the website or mobile app.