Some stability on D-Street after manic Monday; Yes Bank rallies 35%

Indian market closed with a positive bias on March 11, after manic Monday giving, some hopes to the bulls. The S&P BSE Sensex rallied more than 60 points while the Nifty50 held on to 10,450.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 62 points to 35,697 while the Nifty50 closed with a gain of 7 points to 10,458.

Indian markets saw some green light largely in line with global peers after the Bank of England joined other central banks in cutting interest rates by 50 bps.

The BoE did not announce any new quantitative easing but it did launch a new scheme to support lending to small businesses, said a Reuters report. “The cut raised hopes for more co-ordinated monetary and fiscal stimulus to counter the economic shock from the coronavirus outbreak,” it said.

Sectorally, the rally was seen in energy, telecom, finance, capital goods, FMCG, and banking stocks while profit-taking was seen in oil & gas, realty, public sector, and IT.

The broader market underperformed frontliners. The S&P BSE Midcap index fell 0.89 percent while the S&P BSE Smallcap index was down 0.36 percent.

Indian markets sold off from the highs which might not spell good news for the bulls, but it held onto crucial support levels is a positive sign. D-Street will track macro data around inflation and global cues which are likely to dictate the trend in the near term.

“Global impact of coronavirus which is still spreading at a high rate in countries other than China, and the collapse of oil prices are having a catastrophic effect. Rate cuts and stimulus measures are not working at the time being,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“Even though risk concerns continue to remain elevated, inflow into domestic equity mutual fund surged to the highest level in 11 months indicating investor confidence on a long term perspective,” he said.

Nair further added that going ahead rate-sensitive stocks are likely to remain in focus as consensus estimates show CPI inflation for the month of February eased to 6.80 percent. But the market expects RBI to cut rate in the next policy.

Top Nifty gainers: Coal India, Bharti Infratel, ZEE Entertainment, and YES Bank.

Top Nifty losers: BPCL, Tata Motors, Tata Steel, and GAIL India.

Stocks & Sectors:

Sectorally, the action was seen in the S&P BSE Energy index which was up 2.1 percent, followed by the S&P BSE Telecom index (up 0.76 percent), and the S&P BSE Capital Goods (up 0.38 percent).

On the losing front, the S&P BSE Realty index fell 2.03 percent, followed by the S&P BSE Public Sector index that (down 1.9 percent), and the S&P BSE Oil & Gas index (down 1.89 percent).

Volume spike was seen in stocks like Tata Steel, TCS, Biocon, PVR, Apollo Tyres, and GAIL India.

Long Buildup was seen in stocks like Pidilite Industries, Sun TV, Petronet LNG, Torrent Pharma.

Short Buildup was seen in stocks like TCS, PVR, MindTree, Infosys, and Chola Finance.

More than 500 stocks on the BSE hit a fresh 52-week low. These include Future Retail, Apollo Tyres, GAIL India, Corporation Bank, Oil India, Tata Steel, among others.

Stocks in News

YES Bank: Share price of YES Bank zoomed over 36 percent on reports that State Bank of India could soon submit a resolution plan to the cabinet committee on economic affairs.

Lakshmi Vilas Bank: Share of Lakshmi Vilas Bank rose nearly 5 percent after Kotak Mahindra Bank entered the race to acquire a majority stake in the company.

Raymond: Raymond share price touched a 52-week low, falling 6 percent on March 11 after the company’s lifestyle business CEO decided to step down. Sanjay Behl has decided to step down from his current role after serving for 7 years in the company, Raymond said in a press release.

Granules India: Granules India share price gained 5 percent on March 11 after the company’s shareholders approved buyback worth Rs 250 crore.

Tata Steel: Share price of Tata Steel ended over 7 percent lower after the company plans to cut 1,250 jobs as it faces challenging circumstances and needs to urgently improve profitability, Chief Executive Officer Henrik Adam said.

GAIL India: Shares of GAIL India fell 10 percent after global brokerage Credit Suisse downgraded its rating on the stock to underperform from outperform earlier, citing a sharp fall in oil prices.

Technical View:

Nifty formed a bullish candle on the daily charts.

Nifty respected Monday’s low of 10,294 levels which is a positive sign.

In case Nifty manages to trade above 10,550 levels consistently in next trading session, then eventually in the next couple of days, it can aim to test the bearish gap, registered on March 9, present in the zone of 10,751 – 10,827 levels.

If Nifty breaches 1,0295 levels, then it can head towards its critical supports placed in the zone of 10,100 – 9,850 levels, suggest experts.

Traders can avoid directional bets but investors are advised to nibble into selective stocks to build a long term portfolio, they say.

Three levels: 10,294, 10545, 10800

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