After Market: Bearish signal for 106 stocks; Tata Motors recovers

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NEW DELHI: Marking a turnaround in fortunes, equity benchmarks Sensex and Nifty staged an impressive comeback on Friday, led by banks, financials, FMCG and auto stocks.

The reversal of course came after three straight sessions of losses.

Earlier on, sentiment got a leg-up on reports that Warren Buffett’s Berkshire Hathaway is looking to buy 10 per cent stake in Kotak Mahindra Bank.

Crude oil prices lay low due to ambiguity over a cut in output by Opec. A stronger rupee had a big bearing, too.

Asian and European markets were in a better shape after US Fed Chairman Jerome Powell signalled that the three-year tightening cycle is coming to a close. IMF chief Christine Lagarde’s comments that the US is not likely to see an economic contraction in the near term added to the buying momentum.

However, there were worries that the US-China relation may turn into a sordid saga due to the arrest of a senior Huawei executive.

The BSE barometer Sensex jumped 361 points, or 1.02 per cent, to end the day at 35,673.25. The Nifty50 closed the day at 10,693.70, with a gain of 93 points or 0.87 per cent.

Midcaps and smallcaps were no match to the Sensex. The BSE Midcap index settled 0.23 per cent up, but the smallcap index closed 0.27 per cent down.

For the week, Sensex came off by 521 points, or 1.44 per cent, and the Nifty 183 points, or 1.68 per cent.

We run you through the highlights of Friday’s session:

Who moved my Sensex
Kotak Mahindra Bank, Adani Ports, Baja Auto, Infosys, Asian Paints and Hero MotoCorp emerged as the top six gainers of the Sensex. On the other hand, Sun Pharma, Coal India, YES Bank, NTPC, Tata Steel and Power Grid Corporation finished the day as the top six losers. Kotak Mahindra Bank, Infosys, Reliance Industries, ICICI Bank, HDFC Bank and Larsen & Toubro featured as the top six contributors of Friday’s rally.

Kotak Bank in a sweet spot
Shares of Kotak Mahindra Bank closed the day at Rs 1,282.25 on the BSE, up 8.53 per cent after reports that Warren Buffett’s Berkshire Hathaway is looking to pick 10 per cent in the bank. According to a CNBC-TV 18 report, the Buffett firm is reported to be lining up $4-6 billion for the private lender through promoter stake buy or preferential allotment.

Tata Motors recovers from 52-week low
Shares of Tata Motors settled flat at Rs 162.45 on the BSE, emerging from its 52-week low of Rs 160.75 it touched during the day after Jaguar Land Rover reported weak sales numbers for November. “Jaguar Land Rover reported total retail sales of 48,160 vehicles in November 2018, down 8 per cent year-on-year reflecting continuing challenging market conditions in China,” the company said in a BSE filing.

HCL Tech plunges 5%
Shares of domestic IT firm HCL Technologies finished 4.98 per cent lower at Rs 961.55 after the company said it is acquiring select IBM software products for $1.8 billion. The products that represent a total addressable market of more than $50 billion include products in areas like security, marketing and commerce. The acquisition, which is the largest in the history of HCL, is expected to close by mid-2019.

Overbought & oversold stocks
Momentum oscillator Relative Strength Index, or RSI, showed 64 stocks in the oversold zone on BSE. On Friday, shares of Jindal Stainless, Arvind, IL&FS Transportation, Quess Corp, Vipul and Sun Pharma Advanced Research Company featured in oversold territory. On the other hand, GBL Industries, Orient Tradelink, A Infrastructure, Econo Trade (India) and Apoorva Leasing Finance & Investment featured among the 27 stocks that settled in the overbought zone.

Bearish signal for 106 counters
Momentum indicator moving average convergence divergence, or MACD, showed bearish crossovers on 106 counters on the BSE. Among the stocks that showed bearish crossovers were HCL Technologies, IDFC Bank, IRB Infrastructure, SBI Life Insurance, Indian Bank, Tech Mahindra, Lupin, Maruti Suzuki India and Indiabulls Real Estate. On the other hand, 50 stocks, including Orient Electric, ICICI Securities, Avanti Feeds, Angel Fibers and Shiva Texyarn, showed bullish crossovers.

Spurt in open interest
Muthoot Finance featured at the top among the stocks that witnessed biggest spurt in open interest (OI). The stock saw a change of 89.62 per cent in its OI, followed by Kotak Mahindra Bank (64.05 per cent), HCL Tech (41.78 per cent), Siemens (16.28 per cent) and PFC (15.83 per cent).

Adani Ports, Kotak Bank above 200-DMA
Adani Ports, PTC India, Mahamaya Steel, Graphite India, Aarti Drugs and Kotak Mahindra Bank were among stocks that witnessed positive breakouts and traded above their 200-DMAs. On the flip side, Allahabad Bank, Mawana Sugars, HCL Tech and PI Industries went below their 200-DMAs.

Nifty forms ‘Inside Bar’
The Nifty50 closed just shy of the 10,700-mark on Friday. The index formed an ‘Inside Bar’ on the daily chart and remained below its 200-Day Moving Average (DMA). “As the Nifty50 registered a decisive breakdown below its 200-DMA with a gap down on Thursday, the index may remain under pressure unless it closes above 10,748 and weakness shall get extended on breach of 10,588,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.

Source: Economic Times