Bulls regain control after 4-days of pain, Nifty reclaims 12,100 levels

Bulls managed to push the benchmark indices above crucial resistance levels on February 19 thanks to positive global and domestic cues. The Nifty50 is back above 12,100 while the S&P BSE Sensex rallied more than 400 points to reclaim 41,300 levels.

The market rallied on hopes that the government may consider some relief measures for the ailing telecom players, as well as, crucial announcements from the Cabinet meeting on the agricultural sector.

Cabinet approved Rs 4,460 cr for dairy farming and has approved tweaks to the crop insurance.

On the global front, new coronavirus cases have decreased and close to 80 percent of Chinese factories have resumed work.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 428 points to 41,323 while the Nifty50 closed with gains of 133 points to 12,125.

Sectorally, the action was seen in Energy, Healthcare, oil & gas, FMCG, consumer durables, and power indices.

Broader markets outperformed frontliners as the S&P BSE Midcap index rose 1.3 percent and the S&P BSE Smallcap index gained 1.4 percent.

Top Nifty gainers include names like ZEE Entertainment, Coal India, Grasim Industries, and Bharti Infratel.

Top Nifty losers include names like Sun Pharma, JSW Steel, and Tata Motors.

Stocks & Sectors:

Sectorally, the action was seen in the S&P BSE Energy index which rose 2.3 percent, followed by the S&P BSE Healthcare index (up 2.1 percent), and the S&P BSE Oil & Gas index (up 1.6 percent).

Volume spike of 100-600 percent was seen in Wipro, Idea Cellular, HUL, Voltas, Torrent Pharma, and Aurobindo Pharma.

Long buildup was seen in stocks like Torrent Pharma, Voltas, Adani Power, and Aurobindo Pharma

Short Buildup was seen in stocks like Apollo Tyres, Tata Motors

Stocks in news:

Vodafone Idea share price surged 38 percent after company’s Chairman Kumar Mangalam Birla met Telecom Secretary Anshu Prakash on Tuesday.

ARSS Infrastructure Projects share price jumped 15 percent after the company bagged an order worth Rs 130 crore.

Man Industries share price rose 3 percent after the company received a new export order of approximately Rs 300 crore from the MENA region.

SpiceJet share price advanced more than 4 percent after reports made rounds that the company is going to launch new domestic flights.

Aurobindo Pharma share price gained 20 percent after the company received an establishment inspection report (EIR) with voluntary action initiated (VAI) status from the United States Food and Drug Administration (USFDA).

JLR’s UK production threatened by parts shortage due to coronavirus, Tata Motors down 2%

Technical View:

Nifty formed a bullish candle on the daily charts.

It made a strong comeback with an Island Reversal reversal formation.

As long as Nifty sustains above Wednesday’s gap zone of 12,042–12,030 levels, one can retain an optimistic stance, suggested experts.

Nifty is trading below its 50-Day Exponential Moving Average placed at 12,140.

Traders can make use of dip to create fresh longs with a stop below 12,030 levels on a closing basis and look for an initial target of 12,178.

In case Nifty closes below 12,030 levels, it shall be considered as a weak sign which should ideally resume the downswing, experts said. 

Max Call OI: 12300, 12500

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