The Fridays trading session in the Indian equity markets was a big relief to the bulls as the market surged upwards towards the closing bell. The markets as anticipated opened in the green but then suddenly gave up all the gains during the first half and drifted towards 14350 levels.
The Bears seem to have hammered the Bulls in the morning session.But then suddenly the bulls took charge and the markets regained strength on sustained buying .
Finally at the closing bell, the Nifty closed above 14700 levels at 14744 levels (+186), the Sensex at 49858(+641) and the bank nifty closed at 34161(+404).
NTPC was amongst the top gainer in the Sensex pack, rallying over 4 per cent.It was closely followed by Reliance Industries , ITC,HUL, PowerGrid, Industries, UltraTech Cement and Bajaj Finance.
On the Weaker side of the markets were L&T, Tech Mahindra, Bajaj Auto and Titan.
It was observed that a sharp recovery in FMCG, Pharma, metals and Reliance Industries helped benchmark indices to recover from initial losses .
The market showed a strong recovery on Friday, but overall the sentiments remained weak and in bear trap for the week ended March 19 .This was on account of the rising fear of the second wave of COVID-19 and the volatility in US bond yields despite the Federal Reserve's dovish stance.
The volatility in FII inflow, too, caused caution in the market and some buying on Thursday and Friday by the Fii’s has brought some relief to the bulls.
Experts expect an interesting week ahead as the monthly expiry is scheduled and hence the volatility is expected to continue in the market. The increasing local COVID-19 cases and US bond yields are expected to remain closely watched by the street.
The U.S. Markets closed on Friday with strong positive cues as Dow Jones closed in at 32,627( -243 ) , S&P at 3913 (-3) whereas NASDAQ closed in at 13215 (+99).
The Foreign institutional investors bought on Friday Rs 1418 Crores whereas Domestic institutional investors bought Rs 559 Crores.
FII’s Buying in such big quantity on thursday and friday is a big relief for the bulls and if the same continues in the coming days then nifty monthly expiry can happen around 15200 levels..
On this Monthly expiry week , most Experts expect an interesting week ahead with increased volatility expected to continue in the market.
The increasing local COVID-19 cases and US bond yields are expected to be a key factor and will be closely watched by the market participants.
There seems to be a possibility of the I.T. Sector & banking and financial sector bouncing back towards higher levels during this expiry week.
The private banks like HDFC Bank , Rbl Bank, Bandan Bank, Axis Bank, Icici Bank, Federal Bank, Indusind Bank, Kotak 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 have seen 10-15 percent corrections from its recent highs and can be accumulated for decent gains in near future.
NBFC’S –Shriram Transport Finance, Mahindra and Mahindra Financial Services, PEL, Bajaj Twins, will under the radar of the traders.
The I.T Mid- caps and 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, TVS Motos had a weak last week 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 friday's session.
Pharma stocks like Sun Pharma , Lupin, Divi’s Lab, Cipla, Dr Reddy's and Cadila are expected to do good in the near term.
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: RBL Bank , Axis Bank, HDFC Bank, ICICI Bank, Indusind Bank.
#5 NBFC Stocks: PEL, HDFC LTD, IBull Housing, Shriram Transport , Bajaj finance.
# 5 Pharma Stocks: Sun Pharma ,Lupin, Cipla, DrReddy’s, Divi’s Lab.
#5 Information Technology Stocks: HCL Tech, Tech Mahindra , TCS, Infosys, Co- Forge.
#10 Other Main Stocks to watch out for on this Monday Morning in the Indian Equity Markets:
Reliance , Bharti Airtel , Hindalco , Deepak Nitrate, Graphite, Mahindra and Mahindra, Tata Motors, Ashok Leyland, Adani Port, Adani Power.
After a Good positive 2 days on thursday and Friday, the view is that the Indian equity Markets will be looking to move upwards in the coming days with an expected nifty monthly closing around 15100-15200.
The positive cues from the US Markets will emboldened the Bulls to take the markets higher on this monday morning.
#Stocks to Watch for Trading from LakshmiShree in-house Technical Expert Ansul Jain-
22th March Stock Picks — Bharti Airtel, Chola Finance ,Hindalco & Tata Motors.
(Watch YouTube Video Analysis here – https://youtu.be/zmO-yVvNzPg )
The Resumption of Buying by the Foreign Institutional Investors in the Indian Equity Markets will act as a positive trigger for the Bulls to take the Nifty towards 15200-15300 levels again.
Most Analysts now expect the markets to reach towards 15200-15300 nifts levels in this March expiry.
We do conduct Pre-Market Analysis webinars daily in the morning. You can join this live webinar of today through our Facebook Page & Youtube Channel.
Cheerful Trading !!
