It has been nearly 4 days of negative closing for the Indian equity markets and Friday was no different.
The Sensex and Nifty lost more than a percent in the week ended February 19, while BSE midcap and small-cap indices outperformed with gains of 0.63 and 1.23 percent, respectively.
This Monday and the coming monthly expiry week will be an interesting trading period with volatility expected as rising covid cases, global cues, and 3rd Quarter GDP numbers to influence the direction of the market.
The day started with a gap down and was volatile throughout the first couple of hours of trading.
The Nifty was range-bound between 11.30 am to 1.30 pm and then broke downwards to end the day at 14,891(-137), Sensex at 50,899 (-434), and Bank nifty at 35841(-745)
The overall sentiments seem to have turned bearish for the short term with the crucial 15000 levels in the danger of being broken down.
It will be interesting to see if the Nifty is able to close above 15200 or it comes down to 14750 for the coming Thursday monthly expiry.
Most experts expect the indices to continue being bearish like the last 4 days and trade with cues from global markets.
The Global Markets trading in the positive territory during the day will definitely help nifty scale up to 15200 levels during this week or else it will come down and take support at 14750 levels.
The Foreign institutional investors bought on Friday Rs 118 Crores on whereas Domestic institutional investors sold Rs1174 Crores.
FII’s resuming to buy in a big way will be the key to the market's upwards movement in the near term.
The U.S. Markets closed flat on Friday with Dow Jones closing at 31,494 (+0.98), S&P closing at 3906(-7), and NASDAQ closing at 13874(+9).
For the coming week, most analysts believe that Indian markets will keep trading lower unless the global markets support it with positive news flow for it to close at 15200 levels for Thursday's monthly expiry.
Indusind Bank , Axis Bank, ICICI Bank, HDFC Bank, Federal Bank will continue to be in limelight and trades can be expected on both sides in these banking stocks.
Some of the other stocks which can be active on Monday are the Psu banks like Sbi, Bank of Baroda, and PNB, Canara Bank etc.
The insurance sectors stocks Hdfc standard life, Sbi Life and Max financial services will be bought at every dips due to favourable future business outlook.
NBFC’S - Bajaj Twins, Shriram Transport Finance too will look go up in the coming days after a consolidation during last week.
Infosys, Tech Mahindra, TCS, Wipro have been consolidating for the last couple of weeks and showing signs of bouncing back. The I.T. Stocks are poised for an up move and can be accumulated at lower levels for substantial gains in the near term.
Pharma stocks like Divi’s Lab, Sun Pharma, Cadila, and Cement stocks like ACC, and Grasim are Likely to show strength as the broader market looks to regain lost ground.
Also, Bharat Forge, Bharti Airtel, Maruti, Adani Enterprise, Adani Port, is expected to be keenly watched by the traders.
The general Sentiments in the market seem to be mildly bearish with opportunity to buy in dips for a bounce back if global markets give positive cues.
The stocks to keep an eye on in the Indian equity markets will be the Banking Sector, NBFC Sector, Pharma Stocks, FMCG Stocks, and Cement sector Stocks.
# 5 Banking Stocks: Indusind Bank, Axis Bank, IDFC First Bank, HDFC Bank, Bank of Baroda.
#5 NBFC Stocks: Bajaj Finance, Bajaj Fin serves, HDFC Ltd, Mahindra and Mahindra financial, Shriram Transport.
# 5 Pharma Stocks: Lupin, Biocon, Sun Pharma, Dr Reddy’s, Divi’s Lab,
#5 Information Technology Stocks: Tech Mahindra, Co forge, Infosys, TCS, L&T Technology.
#10 Other Main Stocks to watch out for on this Monday Morning in the Indian Equity Markets:
Hero Motocorp, Maruti, Tata Motors, Ashok Leyland, Reliance, Adani Port, Grasim, Bharti Airtel, HDFC Standard Life, Tata Elixsi.
Lincoln Pharmaceuticals - ICRA has upgraded the company's long-term rating to ICRA A and short-term rating to ICRA A1.
Aarti Drugs - The company wound up UAE-based subsidiary Pinnacle Life Science LLC.
NTPC - On successful commissioning, 5 MW last part capacity for 20 MW Auraiya Solar PV Project at Auraiya, UP, has been declared on Commercial Operation w.e.f. 00:00 Hrs. of 20.02.2021.
Jubilant FoodWorks - Wholly-owned subsidiary Jubilant Foodworks Netherlands B.V. has entered into a purchase agreement to fully acquire Fides Food Systems Coöperatief U.A.
Foseco India - Approved the appointment of Mohit Mangal, as the chief financial officer (CFO) in place of R Umesh.
Four stocks - BHEL, Canara Bank, Vodafone Idea and SAIL - are under the F&O ban for February 22.
Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
Stocks to Watch for Trading from LakshmiShree in-house Technical Expert Ansul Jain-
(Watch YouTube Video Analysis here – https://www.youtube.com/watch?v=xeAuObcO_Q0)
After 4 days of weak markets, the Trading view is that the Indian equity Markets will be bearish and depending on global cues try to move upwards towards 15200 Nifty levels.
Most Analysts expect that a breakdown below 15000 nifty levels will bring it to around 14750 nifty levels.
Best wishes for a profitable Trading Day in the Indian equity markets!
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