A 1,000-point intraday swing! Sensex closes below 39K, Nifty holds 11,100

D-Street witnessed one of the most volatile sessions in the recent past on March 2. A 1000-point intraday swing which wiped out most of the gains made on the Sensex during the day.

Meanwhile, Nifty50 held onto its crucial support at 11,100 levels.

Bears took control in the last one-hour of the trading session as the S&P BSE Sensex started correcting from its intraday high of 39,083 to close at 38,144, wiping out 939 points in the process. The Nifty50 broke below 11,200 but found support near 11000.

Let’s look at the final tally on D-Street on March 2 – the S&P BSE Sensex fell 153 points to close at 38,144 while the Nifty50 was down 69 points to end at 11,132.

Sectorally, action was seen in IT while selling pressure was visible in the public sector, metals, oil & gas, energy, telecom, and banking stocks.

Broader markets performed in line with benchmark indices as the S&P BSE Midcap index was down 0.65 percent while the S&P BSE Smallcap index fell 0.77 percent.

On a day when Sensex was down more than 150 points, Nifty50 broke below 11200 levels, nearly 400 stocks on the BSE hit a fresh 52-week low that includes names like Gillette India, Hero MotoCorp, ACC, L&T, IndusInd Bank, Thermax, Lupin, M&M, Raymond, etc. among others.

Experts feel that news of two new cases of Coronavirus in India impacted domestic sentiments and Nifty broke below 11200 levels and ended lower by 0.6 percent on Monday.

The Indian markets have outperformed global peers in the recent rout mainly due to lower crude oil prices and no addition in Coronavirus cases in India.

“Indian market outperformed but with two new cases reported today, we believe the outperformance could reduce in the near term,” Ajit Mishra, VP – Research, Religare Broking Ltd told Moneycontrol.

“Globally, market sentiments would be dictated with the news and update on the spread of Coronavirus cases. A prudent approach for investors at this point would be to stick to quality names and invest in a phased manner,” he said.

Top Nifty gainers include names like ICICI Bank, Nestle India, Eicher Motors, and HCL Technologies.

Top Nifty losers include names like GAIL India, Tata Steel, SBI, and YES Bank.

Stocks & Sectors:

Sectorally, the S&P BSE IT index bucked the trend as the index closed with gains of over 1 percent.

On the losing front, the S&P BSE Public Sector index was down 2.4 percent, followed by the S&P BSE Metal Index which fell 2.05 percent, and the S&P BSE Oil & Gas index was down 1.9 percent. The Nifty Bank fell by nearly 1 percent.

Volume spike was seen in stocks like NTPC, PVR, Bajaj Auto, Century Textiles, and Escorts.

Long Buildup was seen in stocks like Naukri, Escorts, MindTree, Indiabulls Housing Finance

Short Buildup was seen in stocks like PVR, InterGlobe Aviation, Jubilant FoodWorks, Bajaj Auto, and NTPC.

Stocks in the news:

Shares of State Bank of India fell more than 5 percent on March 2, the first day of bidding for its subsidiary SBI Cards and Payment Services’ initial public offering.

Escorts: Escorts share price rose over 8 percent after the company reported better numbers for the month of February 2020.

TVS Motor: TVS Motor Company share price shed 4 percent after the company reported 15.39 percent decline in total sales at 2,53,261 units in February on account of BS-IV reduction and impact of parts supply disruption due to coronavirus outbreak.

Indiabulls Housing: Shares of Indiabulls Housing Finance gained over a percent on March 2 after the company informed the exchanges that RBI’s affidavit has mentioned no violations of any nature or kind regarding the company.

Man Industries: Share price of Man Industries gained over 3 percent on March 2 after the company bagged new export order of approximately Rs 450 crore.

Technical View:

Nifty formed a bearish candle on the daily charts as it gave away most of the intraday gains

Critical long term averages are placed around 11,111 levels. Hence, technically speaking, the possibility of this correction getting culminated around the levels of 11k looks higher

In case of a pullback attempt initially, upsides may remain capped in the zone of 11433 – 11536 levels.

For the time being, traders should remain neutral

Three levels to track on Tuesday would be 11036, 11433, 11536 (swing low of Feb 27)

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