The Mondays trading session in the Indian equity markets was on unpredictable lines with lots of volatility seen during the day. The markets opened gap up marginally and started to drift downwards towards 14750 levels pretty fast.
The bank Nifty came under sustain selling pressure till mid-afternoon with most of the financials trading in the red.
The I.T Sector was the only one showing some strength in the early morning trade.
The Positive cues from the European Markets and the U.S Futures indices did allow the bulls to make a comeback in the late closing hour trade.
Finally at the closing bell, the NIFTY closed below 15000 levels at 14929 levels (-101), the Sensex at 50395(-397) and the bank nifty closed at 35182(-314).
Among sectors, metal, IT and PSU bank indices ended in the green, while selling was witnessed in the auto, infra and pharma sectors. BSE midcap and smallcap indices ended 0.5 percent lower. On the BSE, except IT, metal and power, all other sectoral indices ended in the red.
Bajaj Finserv was the top loser in the Sensex pack, shedding around 3 per cent, followed by Bajaj Auto, Bajaj Finance, L&T, Asian Paints, Dr Reddy's, ICICI Bank, HDFC Bank and RIL.
To sum up, A positive closing in the U.S. Markets will help the Indian equity markets to overcome the bearishness in the markets on tuesday.
The Foreign institutional investors sold on Friday Rs 1101 Crores whereas Domestic institutional investors sold Rs 749 Crores.
FII’s selling in such big quantity is a concern and most analysts are expecting FII’s buying to resume in the coming week and take the markets upwards towards 15400 nifty levels.
The US market ended on a green note overall with the Dow Jones 32,953.74 (+174), S&P 3,968 (+25), and Nasdaq 13,459 (+139.66).
Most experts expect the indices to continue to trend upwards for the coming few days with the downward movement happening only if the US Markets come under selling pressure and FII's don't resume buying.
There seems to be a possibility of the banking and financial sector bouncing bank from the lows of Mondays Trade.
Private banks like Axis Bank, Icici Bank, Federal Bank, Indusind Bank, Kotak Bank, HDFC Bank will look to consolidate and move further up from Monday's lows.
PSU Banks like Canara Bank, Karnataka Bank; Bank of Baroda did see some corrections and can be accumulated for decent gains in near future.
NBFC’S – Mahindra and Mahindra Financial Services, PEL, Bajaj Twins, Shriram Transport Finance will under the radar of the traders.
The I.T Majors like Wipro, TCS, Infosys, Tech Mahindra, and HCL Tech are looking strong with the dollar strengthening and these stocks can move up quickly after a long period of consolidation.
Also Tata Motors, Ashok Leyland, Gujarat Pipavav, had a subdued couple of days and they are expected to regain the positive up move in the near term.
Cement stocks like Ambuja Cement, Grasim , Shree Cement , Dalmia Bharat ,Ramco Cement are likely to show strength as the broader market looks to maintain the upwards momentum from Thursday’s session.
Pharma stocks like Dr Reddy’s, Lupin, Divi’s Lab, Cipla, Sun Pharma, and Cadila are expected to do good in the near term.
The general Sentiments in the market seemed to have turned neutral with traders looking for global cues to take the markets to new highs in the coming week.
The stocks to keep an eye on in the Indian equity markets will be the I.T Sector, Banking Sector, NBFC Sector , Pharma Stocks, FMCG Stocks, and Cement sector Stocks.
# 5 Banking Stocks: Indusind Bank, Axis Bank, HDFC Bank, ICICI Bank, Kotak Bank.
#5 NBFC Stocks: PEL, Bajaj Finance, HDFC LTD, IBull Housing, Shriram Transport.
# 5 Pharma Stocks: Cipla, DrReddy’s, Divi’s Lab, Lupin, Pharma.
#5 Information Technology Stocks: Wipro , Tech Mahindra , TCS, HCL TECH, Co- Forge.
#10 Other Main Stocks to watch out for on this Tuesday Morning in the Indian Equity Markets:
Tata Power, Tata Motors , Deepak Nitrate, Graphite, Mahindra and Mahindra, Ashok Leyland, Adani Port, Adani Power, Canara Bank, Bank of Baroda.
#Stocks to Watch for Trading from LakshmiShree in-house Technical Expert Ansul Jain-
16th March Stock Picks — Coal India , Maruti, Mphasis, Petronet .
( Watch YouTube Video Analysis here – https://youtu.be/AWy2zVfkty4 )
After a weak trading day on Monday, the view is that the Indian equity Markets is that the bulls will need strong buying from Fii’s to resume for it to decisively cross the 15300-400 Nifty levels this week.
Most Analysts expect the markets to reach new highs in this March expiry.
Best wishes for a Cheerful Tuesday in the Indian equity markets!
INDIAN EQUITY MARKETS THIS TUESDAY MORNING!
