The Monday Trading in the Indian equity markets was within a range day with opportunity to buy on dips happening couple of times during the day.
The markets opened gap up due to positive global cues and then did go lower as the down futures started to trade in negative zone.
In the second half session, it did give up some of the gains and came below the crucial support of 15000 nifty levels.
Finally, at the closing bell, the Nifty closed little below 15000 levels at 14956 levels (+18), the Sensex at 50441(+35) and the bank nifty closed at 35275(+47).
Some of the PSU’s like bank of Maharashtra, Indian overseas bank, BEML hit upper circuit on the disinvestment news.
Just Dial jumped 10 percent after the company signed an advertising agreement with Star India for the Indian Premier League (IPL) to be held in April-May 2021, the company said.
Tata Digital, the digital arm of the salt-to-software services conglomerate, has held exploratory talks with Just Dial to strike a strategic alliance or pick up stake, as part of the Mumbai-based group’s push to enter the e-commerce space.
The Bulls will be looking to regain the momentum and push the Nifty above 15100-15200 levels on Tuesday if the global cues are positive.
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 Monday Rs 1494 Crores whereas Domestic institutional investors bought Rs 483 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 Dow Jones ended in the green closing at 31,802.44 (+306.14), whereas S&P and Nasdaq ended on a red note at 3,821.35 (-20.59) and 12,609.16 (-310.99).
Most experts expect the indices to continue to trend upwards for the coming few days with 14925-15000 nifty levels acting as a strong support for the bulls.
The downward movement will happen in case of nifty decisively breaking the 14900 levels and starts to trade for a considerable time below those levels.
The Cues from the global markets in the afternoon session also will be a deciding factor in the closing of Indian equity markets.
There seems to be a possibility of the banking and financial sector bouncing back as some banking stocks like axis bank , icici bank showed some momentum in Mondays trading.
The private banks like HDFC bank, Rbl Bank, Axis Bank, Icici Bank, Federal Bank, Indusind Bank, Kotak Bank, will look to move further up from Monday’s closing.
PSU Banks like Bank of Baroda, Canara Bank, Karnataka Bank; Bank of Maharashtra; Indian overseas Bank did see strong positive movements on Monday and can be accumulated for decent gains in near future.
NBFC’S – PEL, Mahindra and Mahindra Financial Services, Bajaj Twins, Shriram Transport Finance will under the radar of the traders.
The I.T Majors like Infosys, Wipro, TCS, Tech Mahindra, and HCL Tech were 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 Monday’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 be more positive and the traders will be watching keenly the 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: RBL Bank , Axis Bank, Icici Bank, Indusind Bank, Kotak Bank.
#5 NBFC Stocks: PEL, Bajaj Finance, PEL, HDFC LTD, IBull Housing, Shriram Transport.
# 5 Pharma Stocks: Cadila , Cipla, DrReddy’s, Lupin, Divi’s Lab.
#5 Information Technology Stocks: HCL Tech, TCS, Infosys, Wipro, Co- Forge.
#10 Other Main Stocks to watch out for on this Tuesday Morning in the Indian Equity Markets:
M&M, Reliance, Deepak Nitrate, Graphite, Tata Motors, Ashok Leyland, Adani Port, Adani Power, Tata Power, Canara Bank.
#Stocks to Watch for Trading from LakshmiShree in-house Technical Expert Ansul Jain-
9th March Stock Picks — Asian Paints, Bharti Airtel, M&M, Naukri, Titan
(Watch YouTube Video Analysis here - https://youtu.be/hpzL4ZPgzts)
After a range bound trading day on Monday, the view is that the Indian equity Markets will be looking for hints from the Global Markets 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 Profitable Monday in the Indian equity markets!
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