Taking Stock: IT, pharma help market recover; mid, smallcaps outperform

Today's Market

The market ended flat in a highly volatile session on March 22 supported by last-hour buying in IT, metal, pharma and FMCG names. The Sensex closed 86.95 points, or 0.17 percent, down at 49,771.29 and the Nifty ended 7.60 points, or 0.05 percent, lower at 14, 736.40.

Fear of a second coronavirus wave, elevated bond yields and weak global cues weighed on the market. The expectation of a rise in inflation also hit the market, said Vinod Nair, Head of Research at Geojit Financial Services. “The market has marched well in anticipation of faster economic recovery and is taking a breather given tightening restrictions and an increase in future interest rate, spiking fear of a slower recovery,” Nair added.

Among sectors, the Nifty IT, metal, pharma and FMCG indices added a percent each, while the Nifty Bank and PSU Bank index shed a percent each.

Broader indices outperformed the main indices, with BSE midcap and smallcap indices rising 0.7-1 percent.

IndusInd Bank, Power Grid Corp, ICICI Bank, Tata Motors and HDFC Bank were among the major losers on the Nifty. Gainers included Adani Ports, Tech Mahindra, TCS, Britannia Industries and Sun Pharma.

Stocks & sectors

Sectorally, except auto and bank, all other indices ended in the green. FMCG, healthcare, IT and realty indices rose 1-2 percent.

Among individual stocks, a volume spike of more than 100 percent was seen in Adani Port, Adani Enterprises and GMR Infra.

Long buildup was seen in the UPL, GMR Infra and UltraTech Cement, while a short buildup was seen in Muthoot Finance, Coforge and PVR.

More than 150 stocks, including Orchid Pharma, Adani Green Energy, Adani Power, JSW Steel and Grasim Industries, hit a fresh 52-week high on the BSE.

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Technical View

The Nifty formed a Doji candle on the daily scale and negated its formation of lower highs of the past few sessions.

“The Nifty has to hold above 14,700 zones to witness an up move towards 14,900 and 15,000 zones, while on the downside, immediate support exists at 14,600 then 14,450 zones,” said Chandan Taparia of Motilal Oswal Financial Services.

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