Market Headstart: Nifty likely to retest 12k today; inflation data, Delhi polls result in focus

Nifty50 is likely to retest 12,000 levels on Tuesday following a mixed trend seen in other Asian markets. Investors will watch out for the outcome of Delhi Assembly polls result, CPI inflation data for January, and IIP data for December.

While most of the exit polls predict AAP will get a majority, a better than expected performance from BJP will lift the sentiment. The incumbent Aam Aadmi Party (AAP) is likely to get 56 percent vote share in the Delhi Assembly polls, the India Today Axis My India exit poll predicted on Saturday evening.

Trends on SGX Nifty indicate a positive opening in India, with a 20 points, or 0.38 percent, gain. The Nifty futures were trading around 12,087-level on the Singaporean Exchange.

Let’s look at the final tally on D-Street on February 10 – the S&P BSE Sensex fell 162 points to 40,979 while the Nifty50 closed 66 points lower at 12,031.

Sectorally, S&P BSE Metal, Auto, Power, Consumer Durables and Public Sector indices were under pressure.

The rupee on Monday rose by 10 paise to close at 71.30 (provisional) against the US dollar amid easing crude oil prices and weakening of the American currency in the overseas market.

On the institutional front, FPIs were net sellers in Indian markets for Rs 184 cr while the DIIs were net sellers to the tune of Rs 735 cr, provisional data showed.

Big News:

As many as 294 companies on the BSE will declare their results for December quarter that include names like Coal India, Siemens, IDBI Bank, BHEL, CRISIL, CESC, Aster DM, Syndicate Bank, Allahabad Bank, BEML etc. among others.

Coal India: PAT likely to fall by 26% YoY

BHEL: PAT likely to fall by over 6% YoY

Siemens: PAT likely to flat at 287 cr

(All estimates are from Motilal Oswal)

Technical View:

Nifty formed a Bearish Belt Hold kind of pattern on daily charts

Nifty closed below 50-Days EMA placed at 12,054

A breach of 11990-11950 could facilitate the downside target placed in the zone of 11783 – 749 levels. Contrary to this some sideways consolidation can be expected if Nifty manages to close above 12100 levels.

Positional traders are advised to create fresh shorts on a breach of 11950 levels on a closing basis and look for a target of 11770.

Stocks in the news:

Country's largest power generation company NTPC reported a 25.6 percent YoY rise in Q3FY20 profit at Rs 2,995.1 crore.

Aditya Birla Group firm Grasim Industries Ltd on Monday reported a 9.39 per cent decline in consolidated net profit at Rs 1,039.91 crore for the third quarter ended December.

State-owned Indian Overseas Bank (IOB) has reported widening of its net loss to Rs 6,075.49 crore during the third quarter ended December 2019, owing to higher provisioning for bad loan.

Technical Recommendations:

We spoke to HDFC Securities and here’s what they have to recommend:

Tata Chemicals | Buy | LTP: Rs 764.40 | Target: Rs 825 | Stop loss: Rs 735 | Upside: 7%

Wockhardt | Buy | LTP: Rs 364.65 | Target: Rs 393 | Stop loss: Rs 350 | Upside: 7%

Galaxy Surfactants | Buy | LTP: Rs 1,640 | Target: Rs 1,800 | Stop loss: Rs 1,550 | Upside: 10%

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.