The Stock Market in India was very volatile on Thursday's expiry day with morning opening up in green and quickly the selling started across Sectors to end in deep red.
ITC, ICICI Bank, Kotak Bank, Axis Bank, SBI, and HDFC Bank were the main losers in trade on a day of huge selling in the Indian equity markets.
On the other hand, IndusInd Bank, L&T, UltraTech Cement, and Asian Paints were among the gainers.
After starting the day in a slightly positive zone, the volatility did increase lots with ups n downs happening frequently throughout the day. The Indian equity markets finally ended in a deep negative zone with Nifty finally ending at the closing bell at 17857(-354) levels whereas the Sensex closed at 59,984(-1158).
Equity benchmark Sensex plunged 1,159 points on Thursday following an across-the-board selloff as monthly derivatives expired amid a weak trend in global markets.
The Domestic equities witnessed heavy selloff with high volatility mainly led by a sharp correction in heavyweight financials and IT, which wiped out around Rs 4.5 lakh crore from investors' wealth. In addition to weak global cues, the unwinding of long positions especially in financials on F&O expiry, which had seen a sharp rally in recent period were the prime reasons for the sharp market correction, he added.
The Foreign Institutional Investors Sold Rs.3818 Crores on Thursday, whereas Domestic Institutional Investors bought Rs 836 Crores.
The FII’s buying in a big way will definitely help the up move in the markets. Most analysts are expecting the markets to now be volatile in the near term.
Most experts expect that if FII’S buying continues, the indices will go upwards in the coming few days.
There seems to be a possibility of the banking and financial sector bouncing back strongly to higher levels. The I.T, Metals & Chemicals Sector also will be keenly watched by the traders.
NBFC’S – Bajaj Finance, Mahindra and Mahindra Financial Services, PEL, Bajaj fin serve, Shriram Transport Finance will be under the radar of the traders.
Private banks like HDFC Bank, ICICI Bank, Axis Bank, Bandhan Bank, Indusind Bank, Kotak Bank, Federal Bank, will look to scale higher from hereon.
The I.T Stocks like Ltts, Mphasis, TCS, HCL TECH, Tech Mahindra, Co-forge, and Mastek are likely to move up quickly in the coming days.
Pharma stocks like Sun Pharma, Wockhardt, Cadila, Glenmark Pharma, Lupin, Divi’s Lab, Dr. Reddy’s, SPARC, are expected to do well.
The general Sentiments continue to be volatile in the Indian equity markets. The traders will be looking for global cues for direction in the coming days.
The stocks to keep an eye on in the Indian equity markets will be the Banking and Financial Sector, PSU sector, I.T., OMC, Chemicals Sector, Pharma Stocks, FMCG Stocks, and Cement sector Stocks.
# 5 Banking Stocks: RbL Bank, Kotak Bank, Icici Bank, Federal Bank, Canara Bank.
#5 NBFC Stocks: PEL, Bajaj Finance, Bajaj Finserve, India Bulls Housing Finance, HDFC LTD.
# 5 Pharma Stocks: Dr. Reddy's, Divi’s Lab, Cadila, Glenmark Pharma, Sun Pharma.
#5 Information Technology Stocks: Mphasis, LTI, LTTS, Mastek, Tech Mahindra.
#10 Other Main Stocks to watch out for on this Friday Morning in the Indian Equity Markets:
RBL Bank, Tata Steel, Gabriel India, Deepak Nitrate, Bandhan Bank, Bank of Baroda, Gujarat Alkalies, Aarti Surfactants, Persistent System, LTTS.
# Stocks to Watch for Trading from LakshmiShree in-house Technical Expert Ansul Jain-
Watch YouTube Video Analysis here – https://youtu.be/LeuMCANXm6w
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