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Taking Stock: FM comments soothe nerves; Nifty off high but holds 7,800

March 24
19:06 2020

Tracking strong global cues, the Indian market started off on a positive note but then witnessed profit-taking. The news about the finance minister holding a press conference took Nifty50 above 8,000 levels on hopes of the announcement of a stimulus package during the day.

The indices lost momentum when the FM said the stimulus package is underway.

Benchmark indices witnessed selloff in the last one of the trading session as there was no announcements about a stimulus package. But, most of the announcements on GST, taxation, as well as MSME sector is positive for the economy.

“Amidst the lockdown, extension of deadlines and relaxation of norms brings in great relief to the taxpayers and businesses in the country. The relaxation of bank charges is also a welcome step. More measures including cash transfers are expected in the coming days,” Dr. V K Vijayakumar, Chief Investment Strategist at Geojit financial services told Moneycontrol.

“The focus should be on the low-income earners, as they are the worst hit from the lockdown. Removal of minimum balance on bank accounts will be helpful particularly for the poor sections. Raising the threshold for IBC to Rs 1 cr is a succor for the struggling MSMEs,” he said.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 692 points to 26,674 while the Nifty50 gained 190 points to close at 7801.

Sectorally, the action was seen in IT, Energy, FMCG, Healthcare, Bankex, and Auto stocks while selling pressure was visible in Realty, Capital Goods, and Public sector.

Top Nifty gainers include names like Britannia Industries, Adani Ports, and Infosys were up more than 10 percent each.

Top Nifty losers include names like Power Grid, IndusInd Bank, Grasim Industries, and M&M.

Stocks and Sectors:

Sectorally, the S&P BSE IT index rose 6.9 percent, followed by the BSE Energy index rose 4.2 percent, and the S&P FMCG index gained 3.1 percent.

On the losing front, the S&P BSE Realty index fell 2.01 percent, followed by the S&P BSE Capital Goods index that fell 0.73 percent, and the Public Sector was down 0.23 percent.

On the broader markets front, the S&P BSE Midcap index rose 1.5 percent, while the S&P BSE Smallcap index rose 0.05 percent.

Volume spike was seen in stocks like MRF, IOC, NIIT Technologies, and Adani Enterprises.

Long Buildup was seen in stocks like Page Industries, Bajaj Finance, Nestle India, Dabur India, and HDFC Life.

Short Buildup was seen in stocks like M&M, Bajaj Finserv, Bharti Infratel, and Bandhan Bank etc. among others.

More than 1000 stocks hit a fresh 52-week low that includes names like MRF, Page Industries, Bosch, Wabco India, Bajaj Finserv, Maruti Suzuki, and TTK Prestige.

Stocks in the news:

Infosys: Infosys share price rallied almost 14 percent on March 24 after the US Securities and Exchanges Commission (SEC) gave a clean chit to the Indian company in the whistleblower case.

IndusInd Bank: The share price of IndusInd Bank fell over 7 percent after the bank’s MD & CEO Romesh Sobti retired.

Dr Reddy’s Lab: Dr Reddy’s Laboratories share price rose 3 percent on March 24 after the company said it is going to consider fundraising.

HBL Power: HBL Power Systems share price fell almost 5 percent on March 24 after the company halted operations at all its facilities.

Sterlite Tech: Share price of Sterlite Technologies spiked more than 5 percent, the day digital technology company’s board of directors approved the buyback of fully paid-up equity shares.

Technical View:

Nifty formed a Doji kind of pattern on the daily charts

In the next trading session if the index manages to defend 7511 levels on an intraday basis then eventually it can pave the way for further short covering on expiry day.

If 7500 is breached then the downswing shall initially get extended towards 7350 levels and below that 6850 can’t be ruled out, suggest experts.

Pull back attempt bulls shall face their initial challenge in the zone of 8159 – 8200 levels and strength can be expected on a close above 8200 levels.

Traders are advised to wait for one more positive close in next session before deciding on long side trading positions, say experts.

India VIX moved up by 16.15% at 83.60 levels. VIX made a high of 86.63 zones during the day, it’s now near to 2009 high of 87.53 and 2008 high of 92.53 marks.

Three levels: 7350, 7511, 8036

Max Call OI: 12000, 10000

Max Put OI: 7000, 7500

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