Bulls in party mood on Friday, Sensex back above 34,000

Indian shares staged a smart recovery after trading was halted for 45 minutes in the morning when both the Sensex and the Nifty hit the lower circuit. Markets turned around quickly after trading resumed, thanks to positive global cues.

After falling more than 3,000 points in the early trade, the S&P BSE Sensex staged a smart bounce back by rallying over 1,300 points. The Nifty reclaimed 9,900 levels, staging its biggest intraday recovery since September 2019.

On a weekly basis, the Sensex was down 9.2 percent, while the Nifty fell nearly 9 percent. The week ending March 13 will go down as one of the worst weeks for Indian markets.

“This week will go down in history as one of the worst weeks for global markets. Consider this, the US market had declined 18% in just the first four days of trading. The Sensex closed 9% lower for the week but not before being locked in the lower circuit on Friday,” Sanjeev Zarbade, VP PCG Research, Kotak Securities, said.

“Markets have been battered by the potential economic impact on account of various preventive travel measures by major countries. FPIs sold equities worth $ 2.3 billion over the past five trading sessions while DIIs bought $ 1.8 billion worth of equities in the same period.”

The final tally on D-Street: the S&P BSE Sensex rose 1,325 points to close at 34,103 while the Nifty50 ended 365 points higher at 9,955.

Sectorally, the action was seen in the public sector, telecom, metal, oil & gas and banking stocks. The NiftyBank rose 5 percent to close at 25,166.

Hopes of stimulus measure from the US and Indian government helped the sentiment. But, the large movement seen in Indian markets gave long term investors a golden opportunity to pick stocks.

“Indian markets reached capitulation today amidst mayhem as exchanges were forced to shut down markets on hitting the circuit filter. Markets after reopening displayed a highly spirited recovery in anticipation of a stimulus today post market by the GoI,” S Ranganathan, Head of Research at LKP Securities, said.

“The intraday swing in indices witnessed today was truly unnerving but provided a tremendous buying opportunity for those under-allocated towards equities.”

Also ReadFrom freaky Friday to TGIF, markets take a U-turn: 4 factors fuelling the rally

On the broader markets front, the S&P BSE Mid-cap index was up 2.09 percent while the S&P BSE Smallcap index closed with gains of 1.26 percent.

Top Nifty gainers include HDFC, Tata Steel and SBI, which were up more than 10 percent each.

Top Nifty losers included Asian Paints, Nestle India, ZEE Entertainment and UPL, which were down 2-7 percent.

Also read: Here are 10 biggest single-day falls

Stocks & sectors

Sectorally, the action was seen in the S&P BSE Bankex which was up 4.68 percent, followed by the S&P BSE Public Sector that gained 6.8 percent and the Telecom index was up 6.39 percent.

Volume spike was seen in stocks such as SBI, Adani Ports, HDFC Life, IOC, Bharti Airtel and Idea Cellular.

Long buildup was seen in HDFC life, Chola Finance and Tata Chemicals among others.

Short buildup was seen in stocks like PVR, Titan Company, UPL, Naukri and Shriram Transport Finance.

More than 1,300 stocks on the BSE hit a 52-week low. These included 3M India, Bosch, P&G, Polson, Bajaj Finserv, Maruti Suzuki, Gillette and Bajaj Auto.

Stocks in news

YES Bank: Shares of the private lender ended 2 percent in the green after the cabinet approved the Draft Resolution Scheme for the bank on March 13.

Alkem Labs: The share price was up almost 4 percent after the US drug regulator issued an establishment inspection report (EIR) for its unit in Himachal Pradesh’s Baddi.

Telecom stocks gain: Bharti Airtel and Vodafone Idea share prices rose 5-34 percent after media reports said the government may come out with a relief package for the telecom sector.

Sun Pharma: The share price rose 8 percent after the company said it would consider a buyback of shares.

Technical factors

The Nifty formed a bullish candle on daily charts.

It hit a panic bottom around 8,555 levels, from where a sharp rally was seen.

It is too early to say that these gains will sustain, as similar rallies have failed to kick in sustainable moves in DOW recently.

In the best case scenario, the market should remain range-bound between 9,500– 10,150.

Some strength can be expected if the Nifty manages to close above 10,160, with an initial target of 10,300. A close below 9,500 can induce some weakness, with downside targets of 9,100.

Three levels to track: 8,555, 10,159, 10300

Max Call OI: 12,000, 10,000

Max Put OI: 9,000, 9,500

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