No signs of trend reversal in Nifty

Heavy selling was seen in the market, and almost all sectors closed in the red.

The Sensex plummeted over 424 points while the Nifty finished below the 11,000- mark on Friday, amid renewed concerns over the US- China trade conflict.

Investors preferred to book profits following robust gains over the previous few days, even as the risk appetite was tempered by valuation and macroeconomic concerns, traders said.

The Sensex cracked 424.61 points, or 1.15 per cent, to finish at 36,546.48. The Nifty slumped 125.80 points, or 1.14 per cent, to 10,943.60 points.

The auto index (- 3.6 per cent) was the worst performer on the BSE, led by Tata Motors (- 17.6 per cent).

Among the others on the BSE, metal (- 3.4 per cent), media (- 1.9 per cent), and FMCG (- 1.6 per cent) closed lower. Realty (+ 0.8 per cent) was the lone gainer.

For the week, media (+ 5.6 per cent) and IT (+ 1.9 per cent) were the top gainers. On the other side, metal (- 2.7 per cent) and realty (- 2.1 per cent) were the top losers.

Tata Motors tanked 17.6 per cent on Friday as the company downwardly revised its margin guidance to 3- 6 per cent in FY 2020 from the earlier estimate of 4- 7 per cent. Moreover, its disappointing Q3 results also turned investors skeptical.. The auto major reported its biggest ever quarterly net loss of Rs 26,960.8 crore for the December quarter, hit by a one- time asset impairment at JLR.

Indiabulls Housing Fin fell 5.9 per cent. SoftBank has invested an equity capital of

2,800 crore in Indiabulls Housing’s associate OakNorth.

The big events to look for next week are:

■ February 12: CPI ( Jan) ■ February 12: Industrial Production ( Dec)

■ February 14: WPI

( Jan)

Technical View

Jayant Manglik, president, Religare Broking, said, “The Nifty plunged sharply lower and lost over a per cent, tracking the weak global cues. It opened with a down tick and drifted gradually lower in the first half. However, the pace of decline intensified in last hour of the trade and the benchmark settled around the day’s low

“The decline in the Nifty clearly indicates lack of decisiveness at higher levels and it will remain so until broader market joins in. Unfortunately, there’s no sign of reversal yet thus we reiterate our cautious view on markets and suggest keeping positions on both sides. By and large, IT and FMCG pack are maintaining their positive stance while PSU banks and metal are reeling under pressure and may see further fall ahead. Traders should plan their positions accordingly.”

Market View

Vinod Nair, head of research, Geojit Financial Services said, “the market slid, as renewed worries over global trade and profit booking in the domestic market after the solid performance in the last one week due to interim budget and RBI policy. A fall in interest rates and improving outlook for consumption oriented sectors after interim budget will provide support to the market.”

— Ashwin Punnen