Last hour selloff sends Nifty below 12,100; these factors weighed Dalal Street today

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Published: February 20, 2020 4:17 PM

The agenda for the meeting with PM will be to lay down a forthcoming trade deal between India and the US. So we are expecting news flows to continue in coming days.

 

Sensex, NiftyMarkets will remain shut on Friday on account of Mahashivratri. However, investors will keenly watch the US President Donald Trump and First Lady Melania Trump’s two-day visit to India

After trading flat throughout the session, the last hour selling dragged the Nifty below 12,100 level. While the S&P BSE Sensex ended 153 points or 0.37 per cent lower at 41,170 points weighed by RIL, TCS, HUL and HDFC Bank. Markets will remain shut on Friday on account of Mahashivratri. However, investors will keenly watch the US President Donald Trump and First Lady Melania Trump’s two-day visit to India. “News flow on Coronavirus is keeping the global market volatile which is causing volatility in the Indian equity market as well. There are some hopes that the government may come out with a relief package for the telecom sector which may lead to short covering in the overall banking sector,” Santosh Meena Senior Analyst TradingBells said.

“The market will also have a focus on US President Trump’s visit to India next week where there are no major expectations from this event. Further development on the Coronavirus issue will be a dominant factor for next week as well,” Santosh Meena said.

RIL, TCS drag Sensex, Nifty- Asian Paints was the top laggard on the Sensex pack, down 2.30 per cent, followed by HUL, TCS, RIL, Nestle India and Tech Mahindra. On the flip side, IndusInd Bank was the top gainer with a growth of 3.58 per cent. Tata Steel, SBI, Power Grid, ONGC, Bharti Airtel were among other gainers on the index. Sectoral indices traded mixed today.

Sectoral indices trade mixed- Nifty PSU Bank index finished 1 per cent higher led by gains in J&K Bank, SBI, Bank of Baroda and Indian Bank. While Nifty FMCG index lost 200 points dragged down by HUL, Emami and UBL.

US President Trump’s visit to India- “The agenda for the meeting with PM will be to lay down a forthcoming trade deal between India and the US. So we are expecting news flows to continue in coming days. Traders should hedge the position as per their risk appetite,” Vishal Wagh, Research Head, Bonanza Portfolio Ltd said.

Midcaps, smallcaps rally- Broader markets continued their strong run and outperformed the equity benchmarks. The S&P BSE Midcap index gained 63 points or 0.40 per cent to 15,694.41 points, while the S&P BSE Smallcap index finished at 14,747 points, up 75 points or 0.51 per cent.

Technical view- “A small negative candle was formed today, that is placed beside the positive candle of the last session. This pattern indicates a choppy movement in the market. Further weakness below from here could lead Nifty towards the retest of key lower support of 11950 levels. The Nifty as per the weekly timeframe formed a small negative candle with lower shadow. This pattern indicates a range bound action with a weak bias. The short term trend of Nifty is choppy, the recent upside bounce seems to have encountered resistance at 12150 levels,” Nagaraj Shetti – Technical Analyst, HDFC securities said.

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