The Tuesday’s trading in the Indian equity markets was a volatile session with the markets giving away the initial gap up gains during the day. In the Post noon session, the bulls made a comeback on the back of strong support from the I.T stocks which gained momentum as NASDAQ future was trading with 200 points upside.
Finally, at the closing bell, the Nifty closed strongly above 15000 levels at 15098 levels (+142), the Sensex at 51025(+584) and the bank nifty closed at 35865(+589).
The Stocks of the day where the Private banks which showed tremendous strength throughout the day with ICICI Bank, Axis Bank, Kotak Bank , HDFC bank leading the way.The Psu banks were subdued in today’s trading session.
The I.T. Stocks like HCL Tech, Tech Mahindra, Infosys, and Wipro started to participate in the afternoon to take nifty towards 15100 levels at close.
To sum up , the stocks with bullish sentiments were Kotak Mahindra Bank, ICICI Bank, Tech Mahindra, Mindtree, TCS, Escorts, Cholamandalam Investment, Asian Paints, HCL Technologies, BHEL and Infosys.
On the other hand, weakness was seen in BPCL, NMDC, Tata Steel, Motherson Sumi, Jindal Steel, Sun TV Network, Container Corporation, PVR, Ashok Leyland, Tata Motors, Bank of Baroda and Godrej Consumer Products.
If nifty stays above 15100 levels for some time on the expiry Wednesday session, 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 bought on Friday Rs 2801 Crores whereas Domestic institutional investors bought Rs 1250 Crores.
FII’s resuming buying in such big quantity is a big positive for the bulls and most analysts are expecting FII’s buying to push the nifty towards 15400 levels in the near term.
The US market ended on a green note overall with the Dow Jones 31,832.74 (+30.30), S&P 3,875.44 (+54.09), and Nasdaq 13,073.83 (+464.66).
Most experts expect the indices to continue to trend upwards for the weekly expiry on Wednesday with 15200-250 nifty levels closing expected.
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 strong possibility of the banking and financial sector gaining strength from the Tuesday’s trading session and Bank nifty making a break out above 36400-36600 levels.
The private banks like Axis Bank, HDFC bank, Rbl Bank, Icici Bank, Indusind Bank, Kotak Bank, will look to move further up from Tuesday’s closing.
PSU Banks like Bank of Baroda, Canara Bank, Karnataka Bank; Bank of Maharashtra; Indian overseas Bank did not participant on Tuesday and will look to contribute to the bank nifty moving upwards.
NBFC’S – Mahindra and Mahindra Financial Services, Bajaj Twins, Shriram Transport Finance PEL too will be strong candidates for positive up move.
The I.T Majors like Infosys, Wipro, TCS, Tech Mahindra, and HCL Tech were strong in Tuesday’s late afternoon trading session and the same positive outlook continues for the Wednesday trading day.
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 Tuesday’s session.
Pharma stocks like Dr Reddy’s, Lupin, Divi’s Lab, Cipla, Sun Pharma, and Cadila are expected to do good picks in the near term.
Also Tata Motors, Ashok Leyland, Gujarat Pipavav, had a weak day on Tuesday and they are expected to regain the positive up move 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.
Keep these stocks under your radar for Trading and investments on Thursday.
# 5 Banking Stocks: HDFC Bank, Axis Bank, Icici Bank, Indusind Bank, Kotak Bank.
#5 NBFC Stocks: Bajaj Fin serve, Bajaj Finance, PEL, HDFC LTD, IBull Housing.
# 5 Pharma Stocks: Sun Pharma, Cadila, Cipla, DrReddy’s, Divi’s Lab.
#5 Information Technology Stocks: Tech Mahindra, HCL Tech, TCS, Infosys, Wipro.
#10 Other Main Stocks to watch out for on this Wednesday’s Morning in the Indian Equity Markets:
Reliance, M&M, Deepak Nitrate, Shriram Transport, 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-
10th March Stock Picks — Adani Port, Axis Bank, Bajaj Auto, Bata India, Eicher Motors.
(Watch YouTube Video Analysis here - https://youtu.be/S4HzJHvZ7BY)
After a positive trading day on Tuesday, the view is that the Indian equity Markets will be looking to further move upwards towards 15300-400 Nifty levels in the near term.
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 Cheerful Wednesday in the Indian equity markets!
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