Nifty snaps 4-day losing streak, logs biggest single-day gain in 6-months

Thank God It’s Friday. Finally, there is some green on the trading screen.

Indian market on March 20 snapped a four-day losing streak tracking positive global cues. The Nifty50 rallied nearly 6 percent to post its biggest single-day gain since September 20, 2019 when the index rose 5.3 percent. The S&P BSE Sensex closed a shade below 30,000.

The final tally on D-Street: the BSE rose 1,627 points, or 5.7 percent, to close at 29,915 while the Nifty rallied 482 points to end the day at 8,745.

For the week, the Sensex and Nifty plunged more than 12 percent each to post their worst week since 2008 financial crisis.

The Nifty Bank was down 19.3 percent while the Nifty Midcap 100 fell 13.3 percent. The Nifty Realty tanked 16.7 percent and the Nifty Auto 13.1 percent.

Sectorally, the action was seen in energy, oil & gas, IT, FMCG, metals, utilities, and telecom index. On the broader market front, the BSE Midcap index gained 4.1 percent, while the BSE Smallcap index was up 4.03 percent.

The strong bounce during the day can be seen as a sign of stabilisation but the previous day’s swing low of 7,832 would be an important support for the Nifty in the coming week.

“Tracking positive sentiments in the global markets, Indian indices closed up by around 6%. It was in sync with Asian and European markets and was more of a relief rally driven by technicals rather than any fundamental change in outlook,” Vinod Nair, Head of Research at Geojit Financial Services told .

“Hopes of further stimulus from central banks across the world to contain the economic damage boosted global markets. The broader market indices were also up by around 4%.”

Top Nifty gainers include RIL, HUL, GAIL India, ONGC, and Bharti Infratel, which were up more than 10 percent each.

Top Nifty losers include Axis Bank, Adani Ports, IndusInd Bank and HDFC Bank.

Stocks & Sectors

Sectorally, the BSE Energy index rose 9.9 percent, followed by the BSE Oil & Gas index, which was up 9.05 percent. The BSE IT index was up 8.3 percent.

Volume spike of 100-300% was seen in stocks such as Adani Ports, Wipro, Cadila Healthcare, Adani Power, and Amara Raja Batteries.

Long Buildup was seen in stocks like Manappuram Finance, Escorts, Bandhan Bank, Adani Power, Apollo Hospitals, and Cadila Healthcare.

Short Buildup was seen in stocks like HDFC Bank, IndusInd Bank and InterGlobe Aviation.

Stocks in news

Escorts: The stock shot up over 18 percent after a report said that the US-based Kubota Tractor may acquire 15-20 percent stake in the Indian company.

Wonderla Holidays: The share price touched a 52-week low of Rs 152.25, falling almost 3 percent, after the company closed all its amusement parks.

Godrej Properties: The share rose 5 percent after the Mumbai-based developer announced it was entering Faridabad, expanding its residential portfolio in the National Capital Region.

Biocon: The stock gained over 9 percent after the pharma company received an establishment inspection report from the US drug regulator.

IT stocks rally: IT stocks rallied up to 12 percent, as the rupee hovered around 75.05-mark. Top gainers included Hexaware Tech, Wipro, NIIT Tech, Mindtree, TCS, Tech Mahindra and HCL Tech.

Technical View

The Nifty formed a Long White Day candle on the daily charts.

But, it is yet to close above its 5-day exponential moving average (8,846), a close above which would suggest some technical strength in the near term.

Technically speaking, further strength towards 9,127 can be expected if the Nifty sustains above 8,891 in the next trading session.

A close below 8,263 could trigger further selling pressure.

For the time, traders should wait for at least one more positive close before considering short-term positions on long side, say experts.

Three levels to watch on March 23 are 8,178, 8,883, 9,127 (swing high of March 18).

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