The Thursday's expiry trading session in the Indian equity markets was very volatile with Nifty opening in the green and towards the closing coming under severe selling pressure.
The question on top of everyone is whether this time the Nifty is going to scale go below 14500 Nifty Levels in the indian equity markets.
On Thursday morning, the Indian equity markets opened up on account of positive global cues and during the day the bears hammered down the stocks to bring down the indices.
The Sensex after rallying nearly 500 points earlier in the morning session, gave up all gains to end 585.10 points or 1.17 per cent lower at 49,216.52.
The Nifty slumped 163.45 points or 1.11 per cent at 14,557.85
The Bank Nifty was at 33856 (-372 ) at closing bell.
While HCL Tech was the top loser in the Sensex pack, shedding around 4 per cent, it was closely followed by Infosys, Dr Reddy's, TCS, Reliance Industries, Tech Mahindra and NTPC.
On the Gaining Side was ITC, Bajaj Auto, M&M, Maruti and Bharti Airtel which stood out in Thursday volatile trading session.
To sum up, with Bearish sentiments in the Indian equity markets seems to take the markets further downwards unless the positive cues from global markets translate in FII's Buying in a big way.
The U.S. Markets closed on Thursday with negative cues as Dow Jones closed in at 32,862 (-153), S&P at 3915 (-58) whereas NASDAQ closed in at 13116 (-409).
For the coming week, most analysts believe that Indian markets will be trending lower with the global markets cues pushing the Indian equity markets in the negative territory.
The Foreign institutional investors bought on thursday Rs 1258 Crores whereas Domestic institutional investors sold Rs 1116 Crores.
FII’s buying will have to continue for the bulls to take the nifty towards 15000 levels again.
Most experts expect the indices to continue to trend dpwmwards on Friday with 14500 nifty levels key for the bulls to retain some support in this weak markets scenario.
The downward movement will happen in case of nifty decisively breaking the 15400-500 levels and starts to trade for a considerable time below those levels.
The Cues from the global markets in the afternoon session on Friday also will be a deciding factor in the closing of Indian equity markets.
There seems to be a strong possibility of the Banking and financial sector gaining strength and Bank nifty making a break out from here on if the market sentiments changes towards the positive side.
The private banks like Axis Bank, Kotak Bank, HDFC bank, Rbl Bank, Bandhan Bank, Icici Bank, Indusind Bank, will look to move further up from thursday's closing.
PSU Banks like Bank of Baroda, Canara Bank, Karnataka Bank; Bank of Maharashtra; Indian overseas Bank has been hammered a lot and will look to contribute to the bank nifty moving upwards.
NBFC’S –Mahindra and Mahindra Financial Services, Bajaj Twins, Shriram Transport Finance too will be strong candidates for positive up move.
The I.T Majors like Tech Mahindra, Wipro, Infosys, TCS and HCL Tech were beaten down in thursday's selling pressure and they will look to bounce back in the Friday’s trading day.
Cement stocks like Ambuja Cement , ACC, Grasim , Shree Cement , Dalmia Bharat ,Ramco Cement are likely to show strength if the market regains some positive momentume from here onwards.
Pharma stocks like Lupin, Dr Reddy’s, Divi’s Lab, Cipla, Sun Pharma, and Cadila are expected to do good picks in the near term as the traders rush towards the defensive stocks.
Also Maruti, Tata Motors, Ashok Leyland, are expected to regain on the basis of the positive news flow regarding the scrappage policy .
The general Sentiments in the market seemed to be more of bearishness and the traders will be watching keenly the global cues to take the call on the markets in the coming days.
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.
Tata Motors, Ashok Leyland, Mahindra and Mahindra , Graphite, Deepak Nitrate, Tata Power, Torrent Power, Reliance, Shriram Transport, Adani Port.
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(Watch YouTube Video Analysis here – https://youtu.be/P30Y_5CQrd8 )
After a weak trading day on Thursday , the view is that the Indian equity Markets is bearish and the traders will be looking to global cues to decide which way the market moves in the near term.
Best wishes for a Profitable & Cheerful Friday in the Indian equity markets!
INDIAN EQUITY MARKETS THIS FRIDAY MORNING
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