The Indian equity markets came under severe selling pressure for the 4th consecutive day on Wednesday.
After initially showing some green in the early morning trade, the Indian equity markets started to slide downwards and didn’t recover till the closing bell.
The sporadic bounces where soon sold into with Reliance, Infosys, HDFC, and HDFC Banks etc- All the heavy weights coming under the bear’s sustained selling pressure.
The Indian Equity Markets ended towards the lows of the day with Nifty closing at 13,967(-271)
Sensex closing at 47409(-937) and Bank Nifty closing at 30284(-913).
In the Evening, Axis Banks results disappointed the Street. Axis bank will be under pressure on Thursday.
The Reliance stock fell nearly (2 to 3) Percent further to the 6 percent fall on Monday after the results on Friday. The reliance stock has now fallen nearly 10% in the last 2 days after the results.
Some of the I.T Stocks like Cyient, LTTS, Tech Mahindra, and HCL Tech showed strength but Infosys, TCS closed in the negative.
The Auto Stocks all were weak through Wednesday on back of disappointment regarding the scrappage policy not being up to the expectation of the markets.
Tata Motors and Ashok Leyland fell nearly 5% whereas Hero Motocorps was down 3 %.
There was weakness in all the sectors from banking to cement to pharma.
Overall, the Indian Equity markets on Wednesday showed weakness across sectors.
Most experts expect the indices on Thursday to be weakness on the back of sell off in global markets. According to Most analysts, the crucial levels of 13700 nifty levels will be decisive support level below which the indices will become weak and selling pressure will follow.
The Foreign institutional investors sold on Wednesday nearly Rs 1688 Crores whereas Domestic institutional investors Sold Rs 4 crores.
FII’s buying towards the budget will be the key to the market slowly but steadily moving upwards.
The U.S. Markets closed very weak on Wednesday with Dow Jones closing at 30,303(-633), S&P closing at 3750(-98) and NASDAQ closing at 13270(-355).
Many analysts believe that Indian markets will be further weakening on Thursday on the back of global weakness in equity markets.
The Selling pressure in U.S Markets and closing of all 3 Indices with nearly 2 percent downside is a big negative to Indian equity markets.
Axis bank results seem to disappoint the street and it will be under pressure on Thursday.
Some of the stocks which can be active on Thursday are HDFC Bank , Icici Bank , Indusind Bank.
The insurance sectors stocks Max financial services and Hdfc standard life did show some strength and will be keenly watched for as defensives bets.
NBFC’S - Bajaj Twins, Shriram Transport Finance too will be keenly watched out on Thursday.
Infosys, TCS came under some selling pressure on Wednesday and will be watched keenly to get an indication of further weakness on Thursday.
Pharma stocks like Divi’s Lab, Sun Pharma, Cadila and Cement stocks like ACC, and Grasim were weak on Wednesday and will be under pressue on Thursday too.
Also Bharat Forge, Bharti Airtel, Maruti, Adani Enterprise, Adani Port, is expected to be keen watched for any trigger by the traders for shorting opportunities.
The general Sentiments in the market have turned bearish with markets falling for 4 consecutive days and the global sell off on Wednesday only adding to the weakness in Indian equity markets.
The stocks to keep an eye on in the Indian equity markets will be the I.T Stocks ,Banks , Pharma Stocks , FMCG Stocks , NBFC Stocks and Cement sector Stocks.
#5 Information Technology Stocks: HCL Tech, Tech Mahindra, Wipro, TCS, L&T Technology.
# 5 Banking Stocks: Axis Bank, HDFC Bank, ICICI Bank, Kotak Bank, Indusind Bank.
#5 NBFC Stocks: Bajaj Finance, Bajaj Fin serves, HDFC, Mahindra and Mahindra financial, Shriram Transport.
# 5 Pharma Stocks: Dr Reddy’s, Divi’s Lab, Cadila, Cipla, Sun Pharma,
#10 Other Main Stocks to watch out for on this Wednesday Morning in the Indian Equity Markets:
Tata Motors , Ashok Leyland ,Reliance, Adani Port,Grasim ,Maruti Bharti Airtel , HDFC Standard Life, Bharat Forge, Cyient.
Analysts are guiding for weakness in the Indian equity markets on Thursday.
It will be interesting to watch if the nifty manages to hold on to 13700 levels and can manage to recover from these levels on this Thursday monthly expiry.
To sum up, for this Thursday the Trading view is that the Indian equity Markets is very weak with possibility of further weakness due to global weakness and Monthly expiry.
Best wishes for a Challenging Thursday in the Indian equity markets!
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 - 13th January 2021.
Cheerful Trading !!
