Trade Nivesh The Nifty 50 broke below 11600 levels in intraday trade on Thursday. The index is now trading below its crucial support of 11614 (swing low of Budget Day), as well as 200-Days SMA placed at 11685.
Indian market fell for the fifth consecutive day in a row on Thursday tracking weak global cues. The S&P BSE Sensex plunged 400 points while the Nifty50 dropped more than 100 points to trade below 11,600 levels.
Sectorally, selling pressure was seen in realty, public sector, power, metal and oil & gas stocks.
Asian markets slide:
Tracking sell-off in the US market overnight, Asian markets extended losses amid rising fears of Caronavirus.
Rising fears of a pandemic, which US health authorities have warned is likely, had already wiped more than $3.6 trillion from global stock markets by Wednesday’s close, said a Reuters report.
Australia's S&P/ASX 200 dropped 1 percent by lunch time and has lost 7 percent this week. Japan's Nikkei fell 1.7 percent to its lowest since October. The Hang Seng fell 1 percent.
US stock futures fell as far as 1 percent, while European stock futures were down 2 percent in Asian trade, the Reuters report said.
Fresh Coronavirus cases unnerve investors:
Mainland China reported 433 new cases of coronavirus infections on Feb. 26, the National Health Commission said on Thursday, up from 406 on the previous day.
According to a Reuters report, the total number of confirmed cases on mainland China has now reached 78,497, the health authority said.
The number of new deaths stood at 29, the lowest daily rate since Jan. 28, and down from 52 on the previous day. The outbreak has now killed a total of 2,744 people, the report added.
Additionally, South Korea reported 334 new cases on Thursday, its largest daily rise since its first case was confirmed on Jan. 20. China reported 433 new infections.
December Quarter GDP Data:
As per the latest report from SBI Ecowrap, India's GDP growth will remain flat at over six-year low of 4.5 percent in Q3 of FY19-20. It revised up its FY20-21 growth estimate to 4.7 percent from the earlier estimate of 4.6 percent because of the base effect triggered by a downward revision in the FY18-19 growth number by the government.
"We are however worried that the impact of coronavirus on India could now happen with a lag. The outbreak is now expected to cause a growth erosion of 100 bps in China alone. New hotspots have emerged in South Korea (977 cases) and in Italy (229 cases) and these will result in more quarantines, border closures and disruptions in economic relations," said the report.
The cost of death even though might be limited, the economic impact could be significantly large. Although number of cases of COVID-19 in India are less, the economic impact is expected to accrue from supply chain risk which may link up with exports as in pharmaceutical sectors.
February F&O Expiry:
Markets are likely to remain volatile ahead of February series monthly expiry on February 27 as traders will roll over positions in the F&O segment from the near-month February series to March series 2020. The February 2020 F&O contracts will expire on 27 February.
Technical View: Nifty breaks below 11600
The Nifty50 broke below 11,600 levels in intraday trade on Thursday. The index is now trading below its crucial support of 11,614 (swing low of Budget Day), as well as 200-Days SMA placed at 11685.
The Nifty filled the previous gap area of 11,750-11,783 (gap of 4th Feb) and formed a Bearish candle on daily chart on Wednesday.
Experts are of the view that as long as the index trades below its immediate resistance of 11800 mark, bears will have upper hand on the market and we may see a further correction towards 11,500 levels.
"If Nifty and Bank Nifty trades below their 200-DMA then major downside will be open where Nifty may head towards 11200-11100 zone while 11500 could be psychological support," Santosh Meena, Senior Research Analyst, TradingBells told Moneycontrol.
"On the upside, 11800 will be an immediate hurdle at any pullback while 100-DMA of 11965 will be a major hurdle at any meaningful recovery," he said.
Indian market fell for the fifth consecutive day in a row on Thursday tracking weak global cues. The S&P BSE Sensex plunged 400 points while the Nifty50 dropped more than 100 points to trade below 11,600 levels.
Sectorally, selling pressure was seen in realty, public sector, power, metal and oil & gas stocks.
Asian markets slide:
Tracking sell-off in the US market overnight, Asian markets extended losses amid rising fears of Caronavirus.
Rising fears of a pandemic, which US health authorities have warned is likely, had already wiped more than $3.6 trillion from global stock markets by Wednesday’s close, said a Reuters report.
Australia's S&P/ASX 200 dropped 1 percent by lunch time and has lost 7 percent this week. Japan's Nikkei fell 1.7 percent to its lowest since October. The Hang Seng fell 1 percent.
US stock futures fell as far as 1 percent, while European stock futures were down 2 percent in Asian trade, the Reuters report said.
Fresh Coronavirus cases unnerve investors:
Mainland China reported 433 new cases of coronavirus infections on Feb. 26, the National Health Commission said on Thursday, up from 406 on the previous day.
According to a Reuters report, the total number of confirmed cases on mainland China has now reached 78,497, the health authority said.
The number of new deaths stood at 29, the lowest daily rate since Jan. 28, and down from 52 on the previous day. The outbreak has now killed a total of 2,744 people, the report added.
Additionally, South Korea reported 334 new cases on Thursday, its largest daily rise since its first case was confirmed on Jan. 20. China reported 433 new infections.
December Quarter GDP Data:
As per the latest report from SBI Ecowrap, India's GDP growth will remain flat at over six-year low of 4.5 percent in Q3 of FY19-20. It revised up its FY20-21 growth estimate to 4.7 percent from the earlier estimate of 4.6 percent because of the base effect triggered by a downward revision in the FY18-19 growth number by the government.
"We are however worried that the impact of coronavirus on India could now happen with a lag. The outbreak is now expected to cause a growth erosion of 100 bps in China alone. New hotspots have emerged in South Korea (977 cases) and in Italy (229 cases) and these will result in more quarantines, border closures and disruptions in economic relations," said the report.
The cost of death even though might be limited, the economic impact could be significantly large. Although number of cases of COVID-19 in India are less, the economic impact is expected to accrue from supply chain risk which may link up with exports as in pharmaceutical sectors.
February F&O Expiry:
Markets are likely to remain volatile ahead of February series monthly expiry on February 27 as traders will roll over positions in the F&O segment from the near-month February series to March series 2020. The February 2020 F&O contracts will expire on 27 February.
Technical View: Nifty breaks below 11600
The Nifty50 broke below 11,600 levels in intraday trade on Thursday. The index is now trading below its crucial support of 11,614 (swing low of Budget Day), as well as 200-Days SMA placed at 11685.
The Nifty filled the previous gap area of 11,750-11,783 (gap of 4th Feb) and formed a Bearish candle on daily chart on Wednesday.
Experts are of the view that as long as the index trades below its immediate resistance of 11800 mark, bears will have upper hand on the market and we may see a further correction towards 11,500 levels.
"If Nifty and Bank Nifty trades below their 200-DMA then major downside will be open where Nifty may head towards 11200-11100 zone while 11500 could be psychological support," Santosh Meena, Senior Research Analyst, TradingBells told Moneycontrol.
"On the upside, 11800 will be an immediate hurdle at any pullback while 100-DMA of 11965 will be a major hurdle at any meaningful recovery," he said.
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