Taking Stock: Selling continues on D-St as IT stocks tumble; auto, pharma outshine

Today's Market

The selling continued on Dalal Street for the second consecutive day on April 20. At close, the Sensex was down 243.62 points or 0.51% at 47,705.80, and the Nifty was down 63.10 points or 0.44% at 14,296.40.

Auto and pharma indices rose 1 percent each, while the IT index shed over 1 percent. BSE midcap and smallcap indices ended in the green.

“Indian markets witnessed a bounce-back in its opening trade, however, failed to hold onto its early gains due to weak global cues and the possibility of a stricter lockdown in Maharashtra,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Despite the vaccine drive kindling hopes of recovery, the trend in the market will depend on positive developments like decreasing COVID cases and the lifting of restrictions. IT and FMCG were the sectoral laggards while mid and small-caps outperformed,” Nair added.

UltraTech Cement, HDFC, HCL Technologies, Grasim Industries and Shree Cements were among the major losers on the Nifty, while gainers included Dr Reddy’s Laboratories, Bajaj Finserv, HDFC Life, Bajaj Finance and Bajaj Auto.

On April 21, the National Stock Exchange of India (NSE) and the BSE will remain closed on account of Ram Navami.

Stocks & sectors

On the BSE, the IT index fell 1 percent, while selling also seen in the bank and FMCG names. On the other hand, buying was witnessed in healthcare, capital goods, metal and realty stocks.

Among individual stocks, a volume spike of more than 100 percent was seen in ICICI Prudential Life Insurance Company, Balkrishna Industries and SBI Life.

Long buildup was seen in ICICI Prudential Life Insurance Company, Pfizer and PVR, while a short buildup was seen in ACC, DLF and HCL Technologies.

More than 100 stocks, including Cipla, Sun Pharma, Jindal Steel and Glenmark Pharma, hit a fresh 52-week high on the BSE.

market snapshot 2004

Technical View

Nifty formed a bearish belt hold candle on the daily scale.

“The Nifty has to cross and hold above 14,400 zones to witness a bounce towards 14,600 and 14,700 zones while on the downside, support exists at 14,200 and 14,100 zones,” said Chandan Taparia of Motilal Oswal Financial Services.

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