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Nifty holds 17,500, ends Feb F&O series 2% down; Sensex drops 139 pts

CLOSING BELL: The S&P BSE Sensex settled at 59,605, down 139 points or 0.23 per cent

Image SI Reporter New Delhi
Nifty holds 17,500, ends Feb F&O series 2% down; Sensex drops 139 pts

CLOSING BELL

Stock market highlights: Equities exhibited wild moves on the monthly expiry day for the February derivatives series. The Nifty50 index hit a high of 17,620 and a low of 17,455 during the day, before closing at 17,511, down 43 points or 0.25 per cent. 

The S&P BSE Sensex, meanwhile, settled at 59,605, down 139 points or 0.23 per cent. It hit a high of 59,960, and a low of 59,406 during the day. 

Axis Bank, Tata Motors, ITC, Maruti Suzuki, SBI, Sun Pharma, Kotak Bank, and Tata Steel were the top large-cap gainers, while Asian Paints, IndusInd Bank, Titan Company, Bharti Airtel, L&T, Bajaj Finserv, HDFC Bank, and NTPC were the laggards. 

In the broader markets, the BSE MidCap index dipped 0.4 per cent, while the BSE SmallCap index added 0.06 per cent. 

Among sectors, the Nifty Media index shed 2 per cent amid decline in Zee Entertainment shares. The stock tanked 14 per cent to hit a new 52-week low of Rs 176.60 per share on the BSE in Thursday’s early trade after the National Company Law Tribunal (NCLT) accepted IndusInd Bank’s insolvency petition against the company and admitted it into the corporate insolvency resolution process. READ MORE

On the upside, the Nifty FMCG index ended 0.26 per cent higher. Individually, shares of ITC hit a new summit at Rs 393.35 on the BSE amid heavy volumes. READ MORE
4:25 PM

COMMENT:: Hawkish Fed comment, rising geopolitical tensions weigh on sentiment

"The equity market traded cautiously between gains and losses as the minutes of the central bank policy meeting revealed concerns over high inflation and its commitment to bring inflation under control. In response to the heightened fears of rate hikes, the US 10-yr treasury yield continued to stay high, near 4%. Additionally, the dollar index rose as the greenback cheered over hawkish Fed comments and rising geopolitical tensions."
 
- Vinod Nair, Head of Research at Geojit Financial Services
4:23 PM

Nifty: The 17,450 may act as an immediate support

"The benchmark Nifty remained volatile on the last day of February's F&O expiry. During the day, Nifty managed to hold above the morning low of 17,455. Going ahead, the low of 17,455 is likely to act as immediate support for the falling Nifty. A decisive fall below 17,450 may trigger the resumption of the fall. In that case, it may fall down towards 17,200–17,150. However, failure to break down may induce a recovery towards 17,750–17,850, where the upper band of the falling channel lies."
 
- Rupak De, Senior Technical Analyst at LKP Securities
 
4:20 PM

Bank Nifty:: Hurdle seen at 40,200; Key support at 39,500

"The BANK NIFTY index after 5 days of brutal selling witnessed some buying from the lower level and formed a long-legged doji candle. The index if it manages to hold today's low can witness a recovery towards 40,500 levels. The index immediate hurdle is at 40,200 above which can witness a short covering move. The index downside support stands at 39,500 and if breached will aggravate the selling pressure."
 
- Kunal Shah, Senior Technical Analyst at LKP Securities
 
4:19 PM

COMMENT:: Huge OI concentration at 17,500, 17,700 Puts suggest traders are not expecting deep correction

"The March Series of Nifty is seen having huge OI concentration at the 17,500 PE and the 17,000 PE strikes indicating that traders are not expecting a very deep correction in the market. What's more important is that the In-the-money (ITM) 17,600 PE also saw shorting today, which eventually supported the Nifty Index from falling further and outperforming the Bank Nifty for most of the day. The 17,500 strikes also saw short straddles being created for the next month, although the volume for this was not very high.
 
All these factors indicate that the start of the series is on a neutral to bearish mode and the down-trend will only get confirmed once the 17,350 level has been breached decisively. The Bank Nifty index today is also looking neutral for the next series with the 40,000 calls and puts adding to large amount of Open Interest. The highest concentration of OI is at these strikes and it is also where traders have taken large quantities of short straddles for March."
 
- Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform
 
4:15 PM

F&O analysis :: 'March Series of Nifty suggests traders are not expecting deep correction in the market'

The March Series of Nifty is seen having huge OI concentration at the 17,500 PE and the 17,000 PE strikes indicating that traders are not expecting a very deep correction in the market. What's more important is that the In-the-money (ITM) 17,600 PE also saw shorting today, which eventually supported the Nifty Index from falling further and outperforming the Bank nifty for most of the day. The 17,500 strikes also saw short straddles being created for the next month, although the volume for this was not very high. 
 
All these factors indicate that the start of the series is on a neutral to bearish mode and the down-trend will only get confirmed once the 17,350 level has been breached decisively. The Bank Nifty index today is also looking neutral for the next series with the 40,000 calls and puts adding to large amount of Open Interest. The highest concentration of OI is at these strikes and it is also where traders have taken large quantities of short straddles for March. 
 
Among stocks, Adani Enterprises is seen having the largest OI build-up on the short side from a 5-day period and has corrected approximately 22% in this same period. Traders should watch out for the previous swing low of this stock at around 1,017 and should look to play this only through next month. Long strangles once the IV cools off a bit.

Views by: Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform
4:11 PM

Shipping Corporation soars 10% amid reports of approval to demerger plan

As per reports, the Ministry of Corporate Affairs has approved the revised demerger plan of Shipping Corporation of India, wherein Rs 1,000 crore will be transferred to the non-core assets. READ MORE

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4:10 PM

Amid record aircraft orders, aviation remains a long-term play: Analysts

The Indian aviation sector is on the cusp of a change as airlines look to induct a record number of aircraft. This, analysts said, will put the sector on a growth runway, though keeping it viable for only long-term investors. READ MORE

Airports, nearby areas may not get 5G network services anytime soon

4:09 PM

ITC hits record high; stock gains over 19% from Budget Day low

The stock hit a fresh all-time high at Rs 394 in trades on Thursday. The stock had hit a low of Rs 329 amid panic selling on Budget day. READ MORE

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4:06 PM

Sandur Manganese zooms 12% on approval to increase production

Shares of Sandur Manganese and Iron Ore jumped 12 on Thursday after the Central Empowered Committee (CEC) allowed the company to enhance the manganese ore production from 2.86 lakh tonnes to 5.82 lakh tonnes. READ MORE

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4:04 PM

HG Infra bags Rs 535 cr order from RVNL; stock has rallied 30% in 3 months

As per analysts at Centrum Broking, the stock of HG Infra has headroom to re-rate as the company is continuing to deliver on growth and monetisation targets. READ MORE

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4:02 PM

Zee Entertainment tanks over 14% intra-day as NCLT admits company to insolvency resolution

Shares of Zee Entertainment Enterprises (ZEEL) tanked 14 per cent to hit a new 52-week low of Rs 176.60 per share on the BSE after the National Company Law Tribunal (NCLT) accepted IndusInd Bank’s insolvency petition against the company and admitted it into the corporate insolvency resolution process. The stock eventually recouped most of its losses and was down 3.5 per cent at close. READ MORE

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3:59 PM

RateGain Travel soars 6% on twi-up with Hotelkey; stock finally ends flat

Shares of RateGain Travel rallied over 6 per cent to a high of Rs 367 per share in Thursday’s intra-day trade after the company inked pact with HotelKey – a cloud-based property management for hotels. READ MORE

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3:56 PM

Sonata Software jumps 5.5% on acquiring Texas-based Quant Systems

The company's North America arm inked an agreement to buy 100 per cent in Texas-based Quant Systems in an all-cash deal of $65 million. READ MORE

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3:54 PM

Indiabulls Housing Finance dips 4% after exchanges reclassify Sameer Gehlaut's stake as 'public'

With the re-classification, the promoter shareholding in the company has been reduced to nil from 9.6 per cent. READ MORE

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3:51 PM

Nifty Realty index also slips 1.8%; Lodha dips 5%; Prestige, Phoenix other major draggers

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First Published: Feb 23 2023 | 8:09 AM IST

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