Nifty fails to hold 11,800; 200 stocks hit 52-week low

It was a day of consolidation on D-Street on Tuesday after a steep fall seen in the previous trading session. The S&P BSE Sensex was down by more than 80 points, while the Nifty50 held onto crucial support at 11,800 levels.

Tracking the momentum, more than 200 stocks hit a fresh 52-week low on the BSE. These include Gillette India, Hero MotoCorp, L&T, BASF India, LIC Housing Finance, HPCL, Canara Bank, DCB Bank, among others.

Let’s look at the final tally on D-Street – the S&P BSE Sensex closed 82 points lower at 40,281 while the Nifty50 fell 31 points to close at 11,797.

Sectorally, the action was seen in realty, telecom, IT, and metal stocks while profit-taking was witnessed in energy, oil & gas, healthcare, consumer durables, and auto indices.

Broader markets underperformed frontliners. The S&P BSE Midcap index was down 0.44 percent and the S&P BSE Smallcap index was down 0.45 percent.

Markets are moving largely on global cues and the Trump-Modi meet also failed to revive sentiment. The market is likely to remain volatile ahead of February F&O expiry, as well as December quarter GDP data, suggest experts.

The Indian market has wiped out gains made so far in 2020, and investors are advised to remain neutral as the index is still trading near crucial support levels which could trigger a technical bounce back.

“We expect that the weak trend in the market may continue for a while as Coronavirus is still rattling the sentiments across the globe,” Ajit Mishra, VP – Research, Religare Broking Ltd told Moneycontrol.

“On the domestic front, weaker than expected Q3FY20 GDP (scheduled later this week) could further dampen the investor confidence at least in the near-term. We suggest buy on dips approach for fundamentally sound stocks amid the prevailing uncertainty,” he said.

Top Nifty gainers: SBI, JSW Steel, Tata Steel, and TCS.

Top Nifty losers: Eicher Motors, GAIL India, Hindalco, and Dr Reddy’s Laboratories.

Stocks & Sectors:

Sectorally, the action was seen in the S&P BSE Realty index, which was up 1.04 percent, followed by the S&P BSE Telecom index (up 0.87 percent), and the IT index (up 0.57 percent).

Selling pressure was seen in BSE Energy index that fell 1.6 percent, followed by the S&P BSE Oil & Gas index (down 1.1 percent), and the S&P BSE Healthcare index (down 1.1 percent).

Volume spike of 100-300 percent was seen in stocks like Tech Mahindra, IGL, Siemens, Bata India, NTPC, TVS Motors, IOC, Power Grid, and InterGlobe Aviation.

Long Buildup was seen in stocks like Tech Mahindra, IGL, ICICI Bank, and IOC.

Short Buildup was seen in stocks like Bata India, Power Grid, Divi’s Laboratories, and Bajaj Auto.

Stocks in News

Biocon: Biocon share price fell over 3 percent after detailed observations were issued for its Bengaluru unit by the US health regulator.

Shilpa Medicare: Shilpa Medicare share price jumped 5 percent after the board approved the sale of its biological unit.

Navin Fluorine: Navin Fluorine International share price surged 20 percent on after the company bagged a multi-year contract from a global firm.

IRB Infrastructure: Shares of IRB Infrastructure Developers gained over 4 percent after IRB Infrastructure Trust received the first tranche of investment from GIC affiliates.

Technical View:

Nifty formed a bearish candle on the daily charts for the third consecutive day.

Bulls have put in a tough fight around 11,800 levels. Critical support is placed around 11,783 – 11,740 levels

There seem to be multiple supports emerging on the downsides at every 50 point decline. In case Nifty fails to hold 11,749 then it can head to test its 200-Days Simple Moving Average (SMA) support placed around 11,684 levels

Strength is expected to come if Nifty manages a close above 11,900 in the next couple of trading sessions which then can pave the way for sideways consolidation, suggest experts.

Traders are advised to remain neutral and focus on stock-specific opportunities.

Three levels: 11779-11750, 11883, 11900

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