The Friday Trading in the Indian equity markets was a within a range day with the opportunity to sell on highs' sort of session.
The markets opened gap down due to weak global cues and then did bounce little higher to stay above 15000 levels .
In the second half session, it did give up some of the gains and lost 100 points. Then towards closing it did regain some loses to close around 15000 levels.
Finally, at the closing bell, the Nifty closed little below 15000 levels at 14938 levels (-142), the Sensex at 50405(- 440) and the bank nifty closed at 35228(-574).
Sbi, Wipro, Icici Bank and Tata Motors were among the top Nifty losers, while gainers were ONGC, GAIL, Maruti, Kotak Bank, Hero Motocorp.
The Global Cues on Friday was positive with all the 3 U.S Indices closing in green.
The Bulls will be waiting to push the Nifty above 15100 levels on Monday with a Gap up opening.
If nifty stays above 15100 levels for some time, most analysts expect strong short covering to happen .They expect the nifty in such a situation to bounce back to 15250-300 levels which has a strong resistance.
The Foreign institutional investors sold on Friday Rs 2014 Crores whereas Domestic institutional investors sold Rs 1191 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.
The U.S. Markets closed on Friday with strong positive cues as Dow Jones closed in at 31,496 (+572), S&P at 3841 (+73) whereas NASDAQ closed in at 12920 (+196).
For the coming week, most analysts believe that Indian markets will be trending higher with the global markets cues important in deciding the near term direction of the markets.
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 bond yields again starts moving upwards.
There seems to be a possibility of the banking and financial sector bouncing bank from the lows of last week.
The private banks like Axis Bank, Icici Bank, Federal Bank, Indusind Bank, Kotak Bank, HDFC Bank will look to consolidate and move further up from the last week’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 especially since the global markets was in positive territory on Friday closing.
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 bullish with traders taking 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: Axis Bank, Federal Bank, ICICI Bank, Indusind Bank, Kotak Bank.
#5 NBFC Stocks: Bajaj Finance, PEL, HDFC LTD, IBull Housing, Shriram Transport.
# 5 Pharma Stocks: Cipla, DrReddy’s, Lupin, Divi’s Lab, Sun Pharma.
#5 Information Technology Stocks: Wipro, TCS, Infosys, HCL TECH, Co- Forge.
#10 Other Main Stocks to watch out for on this Monday Morning in the Indian Equity Markets:
Reliance, Deepak Nitrate, Graphite, Mahindra and Mahindra, Tata Motors, Ashok Leyland, Adani Port, Adani Power, Tata Power, Canara Bank.
After a weak trading day on Friday, the view is that the Indian equity Markets will be looking to open gap up on the back of Global cues and then will decide on the near term direction.
The positive cues from the US Markets will emboldened the Bulls to take the markets towards 15300-15400 levels…
Most Analysts expect the markets to reach new highs in this March expiry.
Best wishes for a Cheerful Monday in the Indian equity markets!
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