Events that may give direction to stock market this week

Market sell-off was at all the counters after Finance Minister Arun Jaitley announced long term capital gains tax (LTCG) in Budget on the last trading day of the week (Friday), with the benchmark Nifty witnessing its largest fall since demonetisation (declined 2.7%). 

Mid-cap and small Index nosedived over 5%. Nifty slipped by 256 points (2.5%) to close at 10,761, and Sensex fell 840 points to close at 35,067. 

Wider fiscal deficit targets and imposing long term capital gain tax on equity capital gains have generated negative sentiment in the market, brokerage Motilal Oswal said. 

Moreover, weak global markets also dented market sentiment. Asian, European market and US Dow Future slipped after US bond yield surged to 4-year high of 2.79% on expectation of further increase rate. 

All the Indices such as auto, banking, metal, realty, cement, tyre, etc. recorded sharp decline. Nifty500 stocks advance-decline ratio was 1:14. PC Jeweller was the biggest loser on Friday, declining over 25% to close at 3-month low at 364. It touched day's low of Rs 218.
 
Bajaj Auto slipped 5% to close at Rs 3241 after the company reported lower than the expected Q3 result. Hindalco declined 2% to close at Rs 250 after the company announced Q3 result.

Nifty Future closed negative with the deep losses of 2.63% at 10,740 points. In the option market, maximum Put open interest was at 10,500 followed by 10,800 and 10,700 strike while maximum Call OI was at 11,500 followed by 11,000 and 11200 strike. 

Fresh Put writing is seen at 10,800, 10,500 and 10,400 strike, while fresh call writing was seen at all the strikes mainly at 10,900, 11,000 and 11,200. Option band signifies a lower trading band and range is shifting lower in between 10,600 and 10,900 zones, the brokerage said.

India VIX moved up 8.09% at 15.25. Sudden jump in volatility even after the big event could hit the market sentiment. Built-up of shorts were seen in most of the sectors as selling pressure was seen across the board. Mainly shorts were seen in PSU banks, auto, oil & gas and metals.

Company meetings on Feb 5
Board Meetings: BASF, Bosch, Century Plyboards, Colgate, ENIL, Eveready Industries, Greaves Cotton, HUDCO, IFCI, La Opala, McLeod Russel, MOIL, Sheela Foam, Tata Motor, Timken India, Ujjivan Financial Services.

Results: BASF, Bosch, Century Plyboards, Colgate, ENIL, Eveready Industries, Greaves Cotton, HUDCO, IFCI, La Opala, McLeod Russel, MOIL, Sheela Foam, Tata Motor, Timken India, Ujjivan Financial Services.

Corporate Action on Feb 5
Dividends: Trident

Commodity:
Brent crude traded near $70 a barrel as the specter of expanding US supply was weighed against Wall Street banks' growing faith in a price rally. 

Events on Feb 5
India: Nikkei Service PMI, Nikkei Composite PMI

UK: Service PMI, Composite PMI

US: Service PMI, Composite PM

Global Market:
Asian equities dropped, with the benchmark regional gauge poised for its worst weekly loss since September 2016. Technology stocks fell the most, mirroring declines of the US peers, while Japanese shares retreated after Bank of Japan's offer to buy bonds failed to shore up sentiment.

European stocks retreated for the fifth day, as traders assess earnings reports from heavyweights, including Deutsche Bank.