RIL, HUL, Airtel help indices log V-shaped recovery; Sensex ends 21 pts up

Stock market updates: Benchmark equity indices slumped over 1 per cent in Friday's intra-day session but made a sharp V-shaped recovery to end the day little changed. Financials and metals exerted pressure on the bourses, even as gains in Reliance Industries, FMCG and select private bank stocks tried to limit the losses.

The S&P BSE Sensex fell 722 points intra-day but recovered to close 21 points, or 0.04 per cent, higher at 52,344 levels. The broader Nifty50 index, meanwhile, bounced back from the day's low of 15,451 to end at 15,683 levels, down 8 points or 0.05 per cent.

The correction was deeper in the broader markets where the BSE MidCap and SmallCap indices closed 0.70 per cent and 0.89 per cent down, respectively.

Overall, the market breadth was heavily skewed towards bears with the Advance to Decline ratio standing at 1:2. ONGC, Coal India, Power Grid, JSW Steel, UPL, NTPC, M&M, SBI, and Nestle India were the top laggards among the large-cap stocks while Mahanagar Gas, Ashok Leyland, SAIL, Canara Bank, Max Financial Services, Graphite India, HEG, Hindustan Copper, Affle India, and Wockhardt Pharma cracked in the mid-, and small-cap segments.

Sectorally, the Nifty PSU Bank declined nearly 2 per cent while the Nifty Auto, Metal, and Realty indices slipped up to 1 per cent each. On the upside, the Nifty FMCG index ended 0.29 per cent higher.

Global markets

Stocks were stranded just below record highs on Friday, with investors left looking for direction after digesting the US Federal Reserve’s more hawkish stance.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan was flat after falling for four sessions. Chinese blue-chip A shares were also little changed, along with Japan’s Nikkei.

In Europe, a slide in bank and energy stocks hit shares, with a hawkish policy outlook from the US Federal Reserve also casting a dampener. The pan-European STOXX 600 index was down 0.2 per cent while Germany's DAX index fell 0.3 per cent.

(With inputs from Reuters)

5:36 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term trend of Nifty is very volatile. The short term downward correction seems to have completed and the Friday's low of 15450 could be an important support as of now. This swing low is expected to be a new higher bottom formation of larger degree, post confirmation. Hence, Nifty sustaining above 15700 levels by next week is likely to open a way for another new all-time highs-above 15901.

 

 

5:33 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

The week turned out to be volatile for the markets, and benchmark Nifty/Sensex hit the 15900 /52800 mark for the first time and also registered fresh all time highs of 15901.60/ 52869.51. Among sectors, despite tepid market conditions, strong buying was seen in FMCG and IT stocks, whereas sustained selling pressure saw the Metal index shed over 6 percent.

Technically, post the strong uptrend rally, the Nifty/Sensex has formed Hammer candlestick pattern which clearly indicates indecisiveness between bulls and bears. However, the medium term texture of the benchmark indices is still bullish and likely to continue in the short run. We are of the view that post strong uptrend rally the market is hovering in the range of 15450 to 15900/ 51900-52850 levels.

The texture of the chart suggests 15400/51800 should be the sacrosanct level for the bulls and as long as its trading above the same, uptrend is likely to continue up to 15800-15900/52600-52850 levels. Further upside may also continue which could lift the index till 16050-16130/ 53100-53300. On the flip side, below 15400/51800, uptrend would be vulnerable. On the sector-specific front, Capital Goods, infrastructure, and Telecom stocks are likely to outperform in the near future.

5:24 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Nifty halted a four-week winning streak as it ended the week 0.73% lower. Panic selling has been absorbed well so far in the markets and local investors have taken these sell-offs as an opportunity to add to their positions. Absence of a sharp selloff in global markets is helping keep sentiments steady here. Follow through buying however may be selective and index gains from hereon may be relatively slow. On the upside the Nifty could face resistance at  15750 while 15430 could provide support on downmoves.  

5:13 PM

INVESTMENT STRATEGY :: Should you buy entertainment, aviation, hospitality stocks?

Off late, worst-hit sectors such as entertainment, aviation, malls and hospitality & leisure have remained in focus on talks around loosening of restrictions in some states. We suggest investors to maintain a safe distance from these stocks rising on irrational exuberance. It would be prudent for investors to ride the bull wave in fundamental resilient companies only and avoid temptation in fancy fast moving stocks.

Views by: Nirali Shah, Head of Equity Research, Samco Securities 

 

5:03 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

>> The Nifty index has formed a pin bar candle pattern on daily chart which suggests every dip has been used by bulls to enter the market at lower levels.

>> As it managed to close above 15,600, its structure looks positive.

>> 15,750-15,820 will be next hurdle zones on the higher side. Going-forward, fresh move towards 16,000-mark will be possible if the index sustains above 15,820

4:51 PM

TECH VIEW :: Nifty has an immediate support at 15430 levels

The Nifty index has formed a Hammer candlestick pattern in the recent trade on the daily chart, which indicates a further upward move in the counter. Moreover, the index has also tested good support at its prior level of 15431, which suggests immediate support for the near term. In addition, on an hourly chart, the index has turned upward from the oversold zones, which point out positive moves for the upcoming session. At present, Nifty has an immediate support at 15430 levels, whereas 15900 may act as a resistance zone.

Views by: Sumeet Bagadia, Executive Director at Choice Broking

4:40 PM

MARKET STRATEGY :: What will drive the indices next week?

With no major event, global cues will continue to dictate the market trend. On the domestic front, the progress of the monsoon and updates on the vaccination drive will be closely watched. Indications are in the favor of further consolidation in the index but the bias would remain on the positive side till Nifty holds above 15,400. Meanwhile, participants should maintain their focus on the selection of stocks and use dips to gradually accumulate the fundamentally sound counters.

Views by: Ajit Mishra, VP - Research, Religare Broking

4:30 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

The market continued to be in the consolidation phase witnessing broad-based selling, taking cues from the Fed policy and mixed global markets.  US bond yields have cooled off from its high as global markets seem to have digested the latest Fed comments. China’s plan to sell metal reserves to check recent price hikes has pulled down the sector's sentiments. The market is likely to continue in the consolidation phase for a short while, which can be an opportunity for investors to buy on dips.

4:21 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Markets remained weak in morning trade amidst concerns regarding supply of paper from primary markets, corporates, OFS and other issuances at a time when the economy is not yet out of the woods. Metals led the fall today but markets recovered lost ground in afternoon trade as we saw buying emerge in Consumer names as well as Insurers.

4:16 PM

IPO Alert :: Dodla Dairy issue subscribed over 45x till 4:00 PM on Day 3

4:07 PM

IPO Action :: KIMS issue subscribed nearly 4x on final day

3:59 PM

Markets this week :: Top Nifty losers

>> Adani Ports: 17.31%

>> Coal India: 10%

>> JSW Steel: 8.3%

>> Tata Steel: 5.7%

>> Hindalco: 5.5%

3:57 PM

Markets this week :: Top Nifty gainers

>> Infosys: 4 per cent

>> Tata Consumer Products: 3.15%

>> Asian Paints: 3.08%

>> HUL: 3 per cent

>> Britannia: 1.7%

3:56 PM

Markets this week :: Indices snap winning run

>> Sensex, Nifty & Midcap index snap 4-week gaining streak.

>> Nifty Bank index slips for second straight week, down nearly 1 per cent
 

>> Nifty falls 0.7 per cent; Sensex 0.2 per cent; Midcap index 3 per cent.

3:51 PM

Sector Watch :: FMCGs rally in a volatile market; HUL up 3%