On Monday, the Indian equity markets finally gave a correction which the bears have been waiting for for the last 2 months. The Prices of all stocks randomly fell in the mid-afternoon trading session with stocks falling anywhere between 5 to 15 percent. The immediate trigger seems to be the negative cues from the European Markets Futures. The Ftse Futures and Dax Futures started to trade in the 2% negative zone due to covid concerns.
All the nifty stocks closed in the red in Monday’s trade.
Large-cap stocks like Reliance corrected nearly Rs 150 from the days High. Infosys and L&T which were comfortably trading in the green too came down along with the other stocks.
The banking and financial stocks fell in a big way with small and mid-caps falling more than 10% during the day before recovering a little bit.
The Indian equity markets started the day mildly in the red at the opening bell and were in the negative zone in a tight range. Then the negative cues from the European markets were the trigger for the deep corrections to happen in the afternoon.
Some buying did happen after the initial steep fall but the normal bounce back didn’t happen as the last week's trade.
The Dow Jones industrial Futures which was holding on to moderate levels of losses till afternoon.
Then it started to slip steeply downwards as the Indian equity markets closed and were quoting around 330 points in the negative.
The selling was seen at a higher level and the markets closed with deep losses in most of the stocks.
Nifty closed at 13,328 (-432) levels on Monday. At one point it was more than 550 points down.
The Sensex closed at 45,553 (-1406) whereas Bank Nifty closed in negative at 49,456(-1258) levels in the Indian equity markets on Monday.
The bank nifty did close way below the crucial level of 30,000 and nifty way below the key support of 13,500 levels.
Dow Jones managed to close in positive while it was trading at 330 points down when Indian equity markets closed on Monday.
It will be interesting to see if the Indian equity markets rebound after the correction on Monday since the U.S. Markets showed strength to close flat on Monday.
The Analyst anticipates a positive opening on Tuesday in the Indian equity markets as the cues from the SGX initial trades are indicating a positive gap opening.
The Foreign institutional investors sold on Monday with Sell figures at Rs 323 crores.
The Domestic institutional investors did buy on Monday with buy figures at Rs486 crores.
The U.S. Markets closed on Friday with Dow Jones closing at 30,216(+37), S&P closing at 3694(-14), and NASDAQ closing at 12742(-13). The U.S Markets closed flat on Monday.
Many analysts believe that Indian markets will be consolidating in the coming days with a slightly positive uptick on Tuesday morning since the U.S. Markets didn’t correct like our markets.
It is to be seen if the selling pressure continues on Tuesday or the Indian equity markets rebound to new highs after Monday's deep one-day correction.
The I.T. stocks will look to give strength to the markets whereas the financial stocks will try to regain some of the lost ground on Tuesday.
Most Analysts anticipate that in the coming days the I.T will be taking the lead from the other sectors.
Technology Sector: The Sector to watch out for on Tuesday in Indian equity markets.
All the I.T. Stocks like TCS, Infosys, Tech Mahindra, L&T Technology, HCL Technology, and the midcap and small caps will be in the limelight on Tuesday too. These stocks managed to fall less compared to the other sectors.
The Large Caps like Reliance and L& T which be critical for the nifty to bounce back from Mondays price corrections.
Pharma stocks like Dr Reddy’s, Cipla, Sun Pharma, and Divi’s Lab had a bad day on Monday and will look forward to continue the up move on tuesday since now the focus will shift to defensive from the banking and financial sector.
The NBFC stocks which had a very weak day on Monday and it will be interesting to see if more corrections happen or it is able to recover from the Mondays price correction.
The Stocks to watch out on Tuesday will be the Hdfc , Lic Housing finance, Bajaj Twins – Bajaj Finance and Bajaj finserve, Hdfc, and smaller stocks like Mahindra and Mahindra financial services
The private banks like Indusind bank , ICICI Bank, Axis bank and Sbi all had a good correction on Monday .It is to be seen if they can stabilise and recover from Monday’s jolt.
The Insurance Stocks like Hdfc Standard life, Sbi life also will be keenly watched on Tuesday.
Most Analysts expect Energy stocks do struggle on further with the engery prices coming down and the stocks showing deep corrections on Monday. The badly hit stocks like ONGC, NTPC, Coal India, GAIL, and BPCL will be keenly watched in trade on Tuesday.
FMCG stocks too had a negative day and will look forward to stabilise and continue its upward move.
The stocks to keep an eye on in the Indian equity markets will be the I.T Stocks , Pharma Stocks , FMCG Stocks , Banks and NBFC Stocks and , Energy sector Stocks.
Keep these stocks under your radar for Trading and investments on Monday
#5 Information Technology Stocks: HCL Technologies,Infosys, TCS, Tech Mahindra, L&T Technology.
# 5 Banking Stocks: Indusind Bank , HDFC Bank, ICICI Bank. Axis Bank, Kotak Bank.
#5 NBFC Stocks: HDFC , Mahindra and Mahindra financial , Bajaj Finance, Bajaj Finserve, Shriram Transport.
# 5 Pharma Stocks: Cadila, Cipal ,Sun Pharma, Dr Reddy’s, Divi’s Lab.
#10 Other Main Stocks to watch out for on this Monday Morning in the Indian Equity Markets:
Reliance, Adani Port, Bharti Airtel, HDFC Standard Life, Sbi Life, BPCL, ONGC, Bharat Forge, Maruti, Ashok Leyland.
Analysts are guiding for a Volatile Tuesday in the Indian equity markets. It will be interesting to watch if the markets manages to recover from the Mondays jolt or continues to slide downwards in trade on Tuesday.
Behind market volatility today we have these stocks to watch today.
-To increase prices of commercial vehicles starting from january.
-To hike prices due to input ost, forex impact.
-Promoters to sell up to 4.74% stake via OFS.
-OFS floor price set at Rs.2,200/sh.
-OFS opens today for non retail investors & on Dec 23 for retail investors.
-Board met to consider share buyback on Dec 24.
-Signs shares purchase agreement with industrial Development Corp, South Africa.
-To acquire 30.77% stake in GSI Lucchini for cash consideration of Euro 1 million.
-Receive approval for Rufinamide oral suspension.
-Market size for drug is $ 24.5 million.
-Timeline for inviting EOL to be declared today.
-Government to issue PIM for SCI divestment today to sell 63.75% stake.
Some more stocks like HDFC Bank, Apollo Hospital, Asian paints, Spice Jet, Interglobe Aviation, Motherson Sumi, Endurance, EIH, Bharat Forge, Indian Hotel & Nestle should be also on the watch list today.
Most Experts are of the opinion that the outlook for Indian equity markets will of positive gap up opening on Tuesday in the Indian equity markets.
They anticipate that if the Nifty manages to cross 13,500 levels , there will be buying which will take nifty to higher levels. Since the bears got the upper hand on Monday , it will be interesting to see how the trade pans out in the coming days of this expiry week.
It would be a great idea if you can identify the direction of the market and pick the sector of the day after observing the initial hour of trading to make the most of the potential opportunities.
Most analysts are suggesting to keep a close watch on the I.T Sector and Pharma Sector as the markets are indicating to moving towards defensives.
As the Indian equity markets are at critical levels after Monday’s correction, most experts are alerting a word of caution and advising against taking heavily leveraged trades on either side.
It is to be seen if the selling pressure continues on Tuesday after opening gap up or the Indian equity markets rebound to new highs after Mondays deep one day correction.
Main Stocks to watch out for This Tuesday in the Indian equity markets!
HCL Technologies ,Infosys, TCS, L&T Technology, Tech Mahindra.
Reliance, Bharti Airtel, Bharat Forge, Maruti, BPCL, ONGC,.
Indusind Bank , Icici Bank , HDFC Bank, Axis Bank, Kotak Bank.
Cipla, Cadila, Sun Pharma, Dr Reddy’s, Divi’s Lab
Tips Worth following for becoming a successful trader and investor in the Indian equity markets.
“When Trading in equity Markets, it’s always useful to remember that what “should happen” may not actually happen.”
“Best wishes for a Profitable Tuesday the Indian equities markets!
Cheerful Trading !!
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