The Wednesday trading session belonged to the bears as the Indian equity markets from the morning itself was weak .The markets continuously came under selling especially towards the closing part of the trading day.
Any attempts to take the markets up by the bulls were made unsuccessful with sustained selling by the bears.
Finally, The Indian equity market closed in the red at the closing bell on March 24th with Sensex sliding downwards 627 points to 49509, and the Nifty losing 154 points to end at 14690
The Trading day was a day of range bound trading with the markets opening gap down and bouncing back from 14700 nifty levels quite a few times.
Among sectors, IT, bank, energy and infra sectors fell 0.4-1.7 percent, while PSU Bank index showed strength and gained over a percent. BSE Midcap and Smallcap indices also closed in the green.
It was a day of mixed trend wherein banks, IT and energy were the top losers while Realty, FMCG and consumer durables were the gainers. On the other hand side, the broader markets outperformed wherein midcap and smallcap closed with marginal upside of 0.3% and 0.4%.
Early morning weakness was on account of the global cues like a possibility of an increase in corporate taxes on wednesday. On the positive side will be the details of Joe Biden unveiling his infrastructure package.
To sum up, The HDFC twins and profit booking in IT stocks led the decline today even as cement and real estate stocks saw keen investor interest. The PSU Banks and Select pharma Stocks showed strength in today’s session.
The Foreign institutional investors sold on Wednesday Rs1685 Crores whereas Domestic institutional investors bought Rs2081 Crores.
FII’s selling is a big negative for the markets and the bulls can make a comeback only if the FII’s resume buying in a big way.
The U.S. Markets closed on Friday with strong positive cues as Dow Jones closed in at 32,981( -85) , S&P at 3972 (+14) whereas NASDAQ closed in at 13246 (+201).
For the coming week, most analysts believe that Indian markets will be trending upwards if the Foreign institutional investors continue buying and there is positive global cues.
Most experts expect the indices to continue to be volatile with bearishness of the Wednesday trade overhanging the weekly expiry.
There seems to be a possibility of the I.T Sector going up in the coming days.
The private banks like HDFC Bank , Axis Bank, Icici Bank, Federal Bank, Indusind Bank, Kotak Bank, will look to consolidate and move further up from the wednesday’s levels.
PSU Banks like Canara Bank, Bank of Baroda did see some strength 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.
The I.T Majors like Wipro, TCS, Infosys, Tech Mahindra, and HCL Tech are looking relatively strong and these stocks can move up quickly from here.
Also Tata Motors, Ashok Leyland, Tvs Motors and other Auto Stocks will be in the radar of traders as the Monthly sales data will be released during the day.
Cement stocks like ACC, Ultra Tech Cement, Grasim , Shree Cement , Dalmia Bharat ,Ramco Cement are likely to show strength as the broader market looks to maintain some upwards momentum in the coming days.
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 bearish with traders looking for global cues .
The stocks to keep an eye on in the Indian equity markets will be the Pharma, I.T Sector, Banking Sector, NBFC Sector , FMCG Stocks, and Cement sector Stocks.
# 5 Banking Stocks: HDFC Bank , Federal Bank , Axis Bank, ICICI Bank, Indusind Bank.
#5 NBFC Stocks: , PEL, Bajaj Finance, HDFC LTD, IBull Housing, Shriram Transport.
# 5 Pharma Stocks: Lupin, HCG , DrReddy’s, Divi’s Lab, Sun Pharma.
#5 Information Technology Stocks: Infosys , HCL Tech, Tech Mahindra , TCS, Co- Forge.
#10 Other Main Stocks to watch out for on this Thursday Morning in the Indian Equity Markets:
IRCTC, M&M, Wipro, Ultratech , Aarti Durgs , Deepak Nitrate, Graphite, Tata Motors, Ashok Leyland, Adani Power.
After a weak trading day on Wednesday, the view in the Indian equity Markets is that Positive Global Cues will help the Bulls to regain the momentum in the coming days.
#Stocks to Watch for Trading from LakshmiShree in-house Technical Expert Ansul Jain-
1st APRIL Stock Picks — IRCTC , M&M ,WIPRO .
( Watch YouTube Video Analysis here-- https://youtu.be/af0kN_toL7w )
The cues from the US Markets will decide the direction that the markets takes in the coming days.
The negative cues from the US Markets will help the bears to take the markets downwards below 14500 levels . If there is positive cues from U.S Global Markets, Then the weekly expiry can happen around 14900 Nifty levels.
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 !!
