AAP sweeps Delhi Assembly Election; Nifty closes above 12,100

Bulls remained in control throughout the session on Tuesday pushing Sensex and Nifty50 above crucial resistance levels. The S&P BSE Sensex reclaimed 41,000, while the Nifty50 settled above 12100 levels.

On the political front, Arvind Kejriwal-led Aam Aadmi Party (AAP) returned to power with 63 seats ahead of BJP which claimed 7 seats.

Positive global cues helped benchmark indices reclaim key resistance levels, but selling pressure at higher levels suggest that lingering concerns around coronavirus will cap upside.

On the macro front, the D-Street would react to the macro data on IIP and CPI inflation which will be out post-market hours on Tuesday.

“Easing concerns over the coronavirus issue after the drop in fresh cases came as a breather for markets. Since the full impact of the virus issue still remains unknown the extended shutdown is expected to dent economic growth this quarter,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

“We expect the domestic market to stay focused on the last batch of Q3 numbers and CPI inflation for the month of January. As per the consensus, inflation is expected to remain elevated confirming the recent action by the central bank,” he said.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 236 points to 41,216 while the Nifty50 closed with gains of 76 points at 12,107.

Sectorally, the action was seen in Power, Metals, Bankex, Energy, Healthcare, and Consumer Durables space while profit-taking was seen FMCG and telecom space.

Mixed performance was seen from the broader market space as the S&P BSE Midcap index rose 0.35 percent while the S&P BSE Smallcap index fell 0.18 percent.

Top Nifty gainers – NTPC, Bharti Infratel, JSW Steel, GAIL India

Top Nifty losers – BPCL, Nestle India, and Yes Bank

Stocks & Sectors:

Sectorally, the S&P BSE Utilities index rose 1.6 percent, followed by the S&P BSE Power which was up 1.5 percent, and the S&P BSE Metal index gained 0.92 percent.

Profit-taking was seen in the S&P BSE FMCG index which fell 0.25 percent, followed by the S&P BSE Telecom index was down 0.11 percent.

Volume spike of 100-800 percent was seen in Dr Reddy’s Laboratories, Torrent Power, Glenmark Pharma,

Long Buildup was seen in stocks like Balkrishna Industries, OIL, Sun TV and Siemens.

Short Buildup was seen in stocks like NALCO, Godrej Consumer Products, Tata Global.

Stocks in news:

SBI rose 2 percent ahead of SEBI nod for the IPO of SBI Cards

Siemens closes with a gain of 1 percent after reporting margin above estimates. We saw volume spike of about 800 percent on Tuesday.

GAIL India share price rose almost 6 percent after the company posted better-than-expected numbers in the quarter ended December 2019.

Shares of Lakshmi Vilas Bank spiked almost 10 percent after a media report suggested that US fund house Tilden Park Capital Management has sounded out the Reserve Bank of India for buying a sizeable stake in the private sector bank.

Share price of National Aluminium Company (NALCO) fell 3 percent after the company posted a consolidated loss of Rs 33.90 for the quarter ended December 31, 2019.

Technical View:

Nifty formed a Grave Stone Doji kind of pattern on daily charts.

It closed below its 50-DMA placed at 12,120.

In the next trading session if the index trades below 12,099 levels then it can come under selling pressure which can eventually drag it down towards recent lows of 11,990.

If bulls manage to defend 12,099 levels then the sideways trend may prevail but a strong close above 12,170 is required for resumption of the up move towards 12,266 levels.

Traders are advised to wait for at least a strong close above 12,138 levels before initiating fresh longs whereas intraday traders shall consider a short side trade if Nifty remains below 12,099 levels suggest experts.

Three levels: 12099, 12172, 12200.

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