Coronavirus jitters grip D-St for the 2nd day; Sensex below 41K

Coronavirus jitters gripped D-Street for the second day in a row on Tuesday which pushed the S&P BSE Sensex lower by nearly 200 points while the Nifty50 broke its crucial support at 12,100, and 50-Days Exponential Moving Average (EMA) placed at 12088.

Brent oil prices stabilised above $ 59, safely above their three-month low of $ 58.50 and 10-year U.S. Treasury yields stabilised above 1.60% after briefly dipping below that level on Monday, said a Reuters report.

“Global market is negative on concerns that Novel Coronavirus issue may slowdown the world economy,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

Japan’s Nikkei, which was down nearly 1% at one point, closed 0.6% lower. Australian shares ended 1.3% down and South Korea’s Kospi index skidded 3%, it said.

Back home, Indian markets extended decline for the second day in a row. The S&P BSE Sensex broke below 41000 while Nifty50 fell below swing low of 12087 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 188 points to 40,966 while the Nifty50 closed 63 points lower at 12,055 on Tuesday.

Sectorally, action was seen in the S&P BSE Oil & Gas index, followed by IT and finance while profit taking was seen in telecom, metal, energy, power and auto stocks.

Top Nifty gainers: Bajaj Finance, HDFC, BPCL, and Sun Pharma

Top Nifty losers: Tata Motors, Tata Steel, Vedanta, and Bharti Airtel

Stocks & Sectors:

Sectorally, the S&P BSE Oil & Gas index was up 0.24 percent followed by the S&P BSE IT which rose 0.2 percent, and the S&P BSE Finance index closed with gains of 0.19 percent.

Profit taking was seen in the S&P BSE Telecom index that was down 4 percent, followed by the S&P BSE Metal index that fell 2.5 percent, and the Power index was down 1.2 percent.

Broader market performed in–line with benchmark indices as the S&P BSE index was down by 0.19 percent, and the S&P BSE Midcap index fell by 0.52 percent.

More than 80 stocks on the BSE hit a fresh 52-week high that include names like MRF, Atul, Dixon Tech, SRF, Dr Reddy’s Laboratories, Info Edge, and Divi’s Laboratories.

Volume spike of 100-600% was seen in InterGlobe Aviation, UBL, Dish TV, IOC, United Spirits etc.

Long Buildup – ACC, Petronet LNG, United Spirits, HDFC Bank

Short Buildup – Wipro, M&M, Infosys, UltraTech Cements

Stocks in the News

United Spirits: United Spirits share price surged 13 percent on January 28, the biggest one-day gain in 27 months, after research house Credit Suisse has upgraded the stock after the company reported its Q3FY20 numbers.

HDFC: Share price of HDFC gained 1.5% after the company registered a whopping 296 percent year-on-year growth in standalone profit due to fair value gain after the merger of Gruh Finance with Bandhan Bank.

Maruti Suzuki: the Share price of Maruti Suzuki shed 2 percent to hit a 1-month low on January 28 after the company reported a 5.1 percent year-on-year increase in third-quarter (October-December) profit despite lower tax cost, dented by lower other income, higher sales promotion expenses and depreciation.

Bharti Airtel: Share price of Bharti Airtel ended over 4 percent in the red on January 28 after a PIL was filed against the Department of Telecommunications (DoT) for not taking coercive action against the telecom companies regarding adjusted gross revenue (AGR) payment.

Aptech: Aptech share price fell over 6 percent following reports that billionaire investor Rakesh Jhunjhunwala was being probed by the market regulator Securities and Exchange Board of India (SEBI) for insider trading in the education firm.

Technical View:

Nifty formed a bearish candle on the daily charts| Supertrend indicator gave a sell signal

The last time when Supetrend gave a sell signal Nifty50 hit a low of 11,980 before bouncing back to touch a record high above 12400 levels

The index also slipped below 50-Days EMA placed at 12088 levels

Nifty closed below its recent corrective swing low of 12087 levels, and as long as Nifty stays below its 50-EMA it should be expected to initially slide towards 11900 levels

Some stability in the index should be expected on reclaiming 12100 levels on closing basis. All technical parameters on lower time frame charts turned bearish traders are advised to initiate fresh shorts with a stop above 12100 levels and look for a target close to 11900, suggest experts.

Three levels: 11900, 12024, 12200

Max Call OI: 12200, 12300

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