Sensex settles 208 points lower at 41,115, ONGC down 5 per cent

Nifty ends down 62 points at 12,106

 

3:30 pm

Closing bell

The market benchmark Sensex surrendered early gains to end 208 points lower on Wednesday as energy, power, auto and financial stocks came under selling pressure.

After plunging 473 points from the day’s high in a choppy session, the 30-share BSE index settled 208.43 points, or 0.50 per cent, lower at 41,115.38. It hit an intra-day high of 41,532.29 and a low of 41,059.04.

Likewise, the broader NSE Nifty closed 62.95 points, or 0.52 per cent, down at 12,106.90.

ONGC was the top loser in the Sensex pack, tumbling 5.13 per cent, followed by NTPC, Maruti, Kotak Bank, HDFC, Asian Paints, ICICI Bank and Axis Bank.

On the other hand, Nestle India, TCS, Infosys, HCL Tech, SBI and Bharti Airtel ended with gains of up to 1.86 per cent.

According to experts, major stocks are in the process of correcting to their support levels ahead of the Union Budget.

Further, global agencies slashing India’s growth outlook and a tepid start to the earnings season are also weighing on domestic investor sentiment, they added.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with gains. European markets were also trading on a positive note in their early sessions.

Brent crude oil futures fell 0.67 per cent to $64.16 per barrel. The rupee was trading flat at 71.22 per US dollar (intra-day). - PTI

3:00 pm

Euro at one-month lows before ECB meeting; yuan fragile

The euro remained at a one-month low on Wednesday amid expectations that European Central Bank policymakers would strike a cautious tone when they met later on Thursday.

A survey by Germany's ZEW research institute showed on Monday that investors' mood had improved more than expected in January and the signing of a China-US trade pact raised hopes Europe's economy would recover. A Citigroup index of euro zone economic activity rose to its highest since February 2018. Click here to read in full the global forex markets report.

 

 

2:30 pm

European shares rebound; German stocks climb to record high

 

European shares bounced back on Wednesday as China's efforts to contain a coronavirus outbreak eased worries of a global pandemic, while the trade-sensitive German shares hit record levels.

By 0806 GMT, the pan-European STOXX 600 was up 0.2 per cent. Frankfurt's DAX outperformed regional peers, after a survey showed that a US-China trade truce had lifted German investor morale to its highest since 2015. Click here to read in full the European markets report.

 

 

 

2:10 pm

Oil slides as IEA predicts surplus, Libya disruption concerns fade

No solace In India, the benefit of moderate crude oil prices is neutralis ed by a weakening rupee   -  Angus Mordant

 

Oil prices dropped on Wednesday as the International Energy Agency's (IEA) forecast of a market surplus in the first half of this year was enough to cancel out concerns about military disruptions that have slashed Libya's crude output.

Brent crude was down 30 cents, or 0.5 per cent, at $64.29 a barrel at 0731 GMT, after falling 0.3 per cent on Tuesday. US oil fell 33 cents, or 0.6 per cent, to $58.05 a barrel, having declined 0.3 per cent the day before. lCick here to read in full the oil markets report.

1:40 pm

 

12:45 pm

Sensex, Nifty iin negative territory

The Sensex and Nifty traded in negative territory at midsession on Wednesday. The benchmark indices opened in the green, but soon reversed their gains to slip into the red. The Asian markets, on the other hand, headed north, after falling sharply yesterday on concerns over a coronavirus outbreak in China.

The Sensex was at 41,224, down 99 points or 0.24 per cent lower. The Nifty was at 12,133, down 36 points or 0.30 per cent.

The top gainers on the Sensex were Nestle India, TCS, Infosys, HCL Tech and UltraTech Cement, which gained between 0.50-1.75 per cent. ONGC dropped over 4 per cent, NTPC was down 3.88 per cent, while Power Grid, Maruti and Kotak Bank lost between 2-2.50 per cent.

12:35 pm

Nifty call: Initiate fresh shorts on rallies with stop-loss at 12,200

 

Despite positive cues from the Asian markets, the Indian benchmarks were on a downtrend in today’s session. The Nifty spot index and the Sensex spot index are down by around 0.35 per cent so far. But major Asian indices such as the Nikkei and Hang Seng have gone up by 0.7 per cent and 1.1 per cent respectively. Click here to read in full the Nifty call report.

12:25 pm

 

12:10 pm

Asian stocks bounce as investors welcome China's virus response

Japan's Nikkei shed 0.61 per cent. File Photo   -  Bloomberg

 

The Asian stock markets recovered ground on Wednesday as China's response to a virus outbreak tempered some fears of a global pandemic, although Shanghai shares initially slipped amid worries about a hit to domestic demand and tourism.

Worries about contagion, particularly as millions travel for Lunar New Year festivities, have knocked stocks from record peaks.

The outbreak has revived memories of the Severe Acute Respiratory Syndrome (SARS) epidemic in 2002-03, a coronavirus outbreak that killed nearly 800 people and hurt world travel. Click here to read in full the Asian markets report.

11:30 am

HDFC AMC shares rise over 2 per cent on strong Q3 results

Shares of HDFC Asset Management Company on Wednesday rose over 2 per cent after the company posted a 45 per cent jump in profit after tax for the December quarter.

The stock gained 2.59 per cent to trade at Rs 3,261.30 on the BSE. On the NSE, the scrip traded higher by similar margins at Rs 3,262.

HDFC Asset Management Company on Tuesday reported a 45 per cent jump in profit after tax (PAT) to Rs 352.5 crore for the three months ended December 31, 2019.

In comparison, the company had posted a PAT of Rs 243.3 crore in the year-ago period, HDFC AMC said in a regulatory filing.

The company’s total income rose 11 per cent to Rs 592 crore in the October-December quarter of the current fiscal from Rs 532.7 crore in the same period in the last financial year.

 

10:40 am

Yen supported, yuan frail on coronavirus concerns

The Fed is expected to cut its benchmark rate for the second time this year by 25 basis points to 1.75 per cent-2.00 per cent at a meeting ending Wednesday. File Photo   -  Reuters

 

The yen was supported while the yuan was on the back foot on Wednesday as investors tried to assess the risk of the outbreak of a new coronavirus in China disrupting the country's economy and trade partners.

The virus, which causes a type of pneumonia, has spread to cities including Beijing and Shanghai as the number of patients in China more than tripled. More cases were also reported outside China, including the United States (US).

Against the yen, the US dollar slipped to 109.86 yen from Tuesday's high of 110.23. Click here to read in full the global forex markets report.

 

10:20 am

Sensex, Nifty trade flat

The Sensex and Nifty gave up most of their early gains to trade almost flat in the morning session on Wednesday.

The Sensex was at 41,350, up 26 points or 0.06 per cent, while the Nifty rose to 12,171, up 2 points or 0.02 per cent.

The top gainers on the Sensex were Infosys, HCL Tech, TCS, Nestle India and Sun Pharma. The laggards were ONGC, NTPC, Power Grid, Maruti and Asian Paints.

According to a PTI report, the Sensex jumped over 200 points in the opening session, tracking gains in index heavyweights HDFC twins, Infosys and Reliance Industries as global stocks recovered from the previous day’s losses.

According to traders, domestic investors turned positive following the recovery in other Asian markets, after a day of massive sell-offs after the outbreak of a new deadly virus in China.

Bourses in Hong Kong, Tokyo and Seoul were trading on a positive note in their early sessions, while Shanghai was still in the red.

Brent crude oil futures slipped 0.36 per cent to $64.36 per barrel. Meanwhile, the rupee appreciated marginally to 71.18 against the US dollar in morning session.

In the previous session, Sensex settled 205.10 points, or 0.49 per cent, lower at 41,323.81; while the Nifty settled 54.70 points, or 0.45 per cent, lower at 12,169.85.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 50.08 crore, while domestic institutional investors offloaded shares worth Rs 307.81 crore on Tuesday, data available with stock exchanges showed.  

10:15 am

Rupee gains 3 paise against $ in early trade

 

The rupee appreciated by 3 paise to 71.18 against the US dollar in early trade on Wednesday, as easing crude oil prices and gains in the domestic equity market lifted investor sentiments.

However, a strong US dollar against major global currencies capped the gains of the domestic unit, dealers said. Click here to read in full the rupee report.

10:00 am

Daily rupee call: Go short in rupee with 70.9 as stop-loss

 

The rupee (INR) weakened on Tuesday, extending its loss against the dollar (USD). After opening at 71.18 versus its previous close of 71.11, it ended yesterday’s session at 71.21. Notably, the domestic currency has a support at 71.2. Click here to read the Daily Rupee Call report.

 

9:45 am

China stocks tumble on virus outbreak, but regional markets steady

Japan's Nikkei shed 0.61 per cent. File Photo   -  Bloomberg

 

Asian stock markets bounced on Wednesday as China's response to a virus outbreak tempered fears of a global pandemic, although Shanghai shares slipped amid worries about a hit to domestic demand and tourism.

Fears of contagion, particularly as millions travel for Lunar New Year festivities, has pushed stocks from record peaks. Click here to read in full the Asian markets report.

9:30 am

What to Watch: Default likely to drag Sumeet Industries

Sumeet Industries on Tuesday said it has total financial indebtedness of the listed entity including short- and long-term debt of ₹534.23 crore.

Of the total ₹530.95 crore outstanding for the quarter ended December 2019, default as on date stands at ₹523.03 crore, it said. Its loan accounts have been classified as non-performing assets by the consortium of banks, it said. Shares of Sumeet Industries may come under pressure following default disclosure.

ZF Steering Gear begins commercial production at Pithampur plant

ZF Steering Gear India, which had earlier announced the commencement of trial production at its new Pithampur (Madhya Pradesh) plant, has commenced commercial production.

After receipt of approval, acceptance of trial production by the customer and after achieving plant-stabilisation, the Pithampur plant of the company, has started commercial production from January 21, it said in a notice to the stock exchanges. Shares of ZF Steering jumped 3.14 per cent at ₹438 on the BSE.

Fire accident may hurt Indian Card shares

Following a fire incident at The Indian Card Clothing Co, its shares may come under pressure. In a notice to stock exchanges, it said the Pimpri plant caught fire on January 20.

The plant has been non-operational since last year, the company said, and added it is in the process of ascertaining the reason for the fire and the actual loss caused. Shareholders will monitor further developments at the company, which had reported loss in Q1 and Q2 of FY-20 and in FY-19.

9:15 am

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened Wednesday's session in the green.

The Sensex opened at 41,500, up 198 points or 0.48 per cent higher than its overnight close.

The Nifty opened at 12,221, up 51 points or 0.43 per cent higher.

 

9:10 am

Day Trading Guide for Wednesday, January 22, 2020

₹1244 • HDFC Bank

S1

S2

R1

R2

COMMENT

1230

1215

1260

1275

The stock tests a key support at current levels. Go long if it reverses higher from ₹1,230 with a fixed stop-loss

 

₹761 • Infosys

S1

S2

R1

R2

COMMENT

755

745

769

775

Fresh short positions can be initiated with a fixed stop-loss only if the stock declines below ₹755 levels

 

₹238 • ITC

S1

S2

R1

R2

COMMENT

236

233

241

244

Make use of intra-day rallies to initiate fresh short positions while maintaining a stop-loss at ₹241 levels

 

₹122 • ONGC

S1

S2

R1

R2

COMMENT

120

117

125

128

Initiate fresh short positions with a tight stop-loss if the stock of ONGC falls below ₹120 levels

 

₹1533 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1515

1500

1545

1560

Fresh short positions are recommended with a fixed stop-loss only if the stock drops below ₹1,515 levels

 

₹313 • SBI

S1

S2

R1

R2

COMMENT

307

300

320

327

Make use of intra-day rallies to initiate fresh short positions with a tight stop-loss placed at ₹320 levels

 

₹2171 • TCS

S1

S2

R1

R2

COMMENT

2150

2130

2190

2210

Initiate fresh short positions with a tight stop-loss if the stock of TCS reverses down from ₹2,190 levels

 

12203 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

12150

12100

12250

12300

Fresh long positions can be initiated with a fixed stop-loss only if the contract moves beyond 12,250 levels

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

 

9:00 am

Today's Pick: Atul Auto (₹281.7): Buy

Investors with a short-term perspective can buy the stock of Atul Auto at current levels. The stock jumped 10 per cent with extraordinary volume on Tuesday, breaching an intermediate-term downtrend-line as well as 200-day moving average. It has potential to trend upwards in the ensuing trading sessions.

Following an intermediate-term downtrend, the stock registered a 52-week low at ₹198 in late August 2019 and reversed direction triggered by positive divergence in the daily relative strength index. Since then, the stock has been in a medium-term uptrend. It trades well above the 21- and 50-day moving averages. Click here to read more on Today's Pick on Atul Auto.

 

Published on January 22, 2020