February 12th 2024 Stock Market analysis

Indian shares drop on profit booking; small-, mid-caps add to pain

Indian shares declined on Monday due to broad-based profit booking, with small- and mid-caps further sliding amidst growing concerns about high valuations. The NSE Nifty 50 index dropped by 0.76% to 21,616.05, while the S&P BSE Sensex settled 0.73% lower at 71,072.49. Last week, hopes for early rate cuts were dashed by the RBI, which also projected elevated inflation for fiscal 2025 at its policy meeting. Small-caps and mid-caps, which are more domestically focused, saw declines of 4% and 2.5% respectively, extending their underperformance against the Nifty 50 for the second consecutive session.

In the NSE Nifty, the top gainers today were Dr. Reddy's, trading at 6321 with a 2.68% increase, followed by Apollo Hospitals, trading at 6604.7 with a 2.60% rise, and Divis Laboratories, traded at 3733.5 with a 2.28% gain.

Conversely, the top losers in the NSE Nifty were Coal India, trading at 434.3 with a significant 4.80% decrease, followed by Hero MotoCorp, trading at 4699.05 with a 4.27% decline, and Bharat Petroleum Corporation Limited (BPCL), traded at 590.4 with a 3.89% drop.

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Technical Outlook for 13th February 

The Nifty has displayed a prominent red candle, suggesting a potential profit booking rally leading to levels around 21,275 on a positional basis. Similarly, the Bank Nifty has also shown a significant red candle, indicating a profit booking rally expected to reach levels around 44,175 on a positional basis.

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Derivative Outlook for 13th February

PCR Analysis: Nifty PCR-OI has decreased with nifty has negative close which shows mild PUT BUYING.

Open Interest Analysis: Nifty future Feb contract OI has increased with negative close which shows Short Buildup.

Cost of Carry Analysis: Nifty FEB month contract has ended in low compare with MARCH contract and high range compare with previous session which indicates a mixed trade.

India VIX Analysis: India VIX has closed at 16.06 vs 15.45 (DoD) basis which shows increase in volatility.‍

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NHPC Shares Plummet 16% Following Earnings Announcement‍

Shares of state-owned NHPC nosedived by 16 percent on Monday following the company's announcement of a 19 percent decline in consolidated net profit for the December quarter.

The company's stock plummeted by 15.81 percent to close at Rs 81.03 apiece on the BSE, while on the NSE, NHPC's shares tumbled by 15.38 percent to settle at Rs 81.45 per piece.

Trading activity was significant, with nearly 39 crore shares exchanged on the NSE and 4.12 crore shares traded on the BSE throughout the day.

In broader equity markets, the 30-share BSE Sensex benchmark declined by 523 points, or 0.73 percent, to end at 71,072.49, while the NSE Nifty slipped by 0.76 percent to close at 21,616.05 points.

In a regulatory filing on Monday, NHPC reported a 19 percent fall in consolidated net profit to Rs 628.44 crore for the quarter due to higher expenses. This was a significant decrease compared to the net profit of Rs 775.99 crore reported in the October-December period of 2022-23.

Furthermore, the company's total income also saw a decline to Rs 2,549.69 crore in the quarter from Rs 2,691.34 crore a year ago.

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