Nifty50 reassemble 4% on FO expiry
The bulls remained in charge of D-Street from the beginning of the session on March 26 pushing the S&P BSE Sensex higher by over 1,400 points while the Nifty50 reclaimed 8,600 levels on the March F&O expiry day.
Let’s look at the final tally on D-Street – the Nifty50 rose 323 points to close at 8641, but for the March series, it fell 25.6 percent, worst fall in percentage terms since 2008 financial crisis. The S&P BSE Sensex also dropped 25 percent in the March series.
The S&P BSE Sensex closed with gains of 1,410 points to end at 29,946, just a shade below 30,000.
The government responded with a relief package for the poor in the first 36 hours of the lockdown which is a welcome step, however, it is not enough, and a much detailed package for the sectors could be announced later.
The market saw a swift short-covering move on the expiry day largely supported by global cues. The $2 trillion package from the US government also lifted sentiment.
“Domestic markets zoomed for the second day on the trot driven by optimism on $2 trillion package to US economy and also in anticipation of an economic package for the Indian economy,” Paras Bothra, President of Equity Research, Ashika Stock Broking told Moneycontrol.
“Finance Minister announced Rs 1,75,000 cr package for the poor and needy. However, measures for corporate or SMEs are still missing. Perhaps this will be followed by monetary stimulus by RBI along with forbearance on loan repayments,” he said.
Sectorally, the action was seen in telecom, capital goods, banks, finance, FMCG, IT, and consumer durables.
On the broader markets front – the S&P BSE Midcap index was up 3.4 percent while the S&P BSE Smallcap index gained 3.7 percent.
Top Nifty gainers: Bajaj Auto, L&T, Bharti Airtel, IndusInd Bank
Top Nifty losers: Maruti Suzuki, Sun Pharma, Adani Ports, GAIL India
Stocks & Sectors:
Sectorally, the action was seen in the S&P BSE Telecom index which rallied by 10 percent, followed by Capital Goods (up 7.2 percent), and the S&P BSE Bankex (up 6.6 percent).
Volume spike of more than 100% was seen in Jindal Steel, Adani Power, Exide Industries, and JustDial.
Long Buildup was seen in Bharti Infratel, Shriram Transport, Motherson Sumi, and Adani Enterprises.
Short Buildup was seen in Exide Industries, Shree Cements, and Cadila Healthcare.
At a time when Sensex rose more than 1,400 points, there are more than 400 stocks which hit fresh 52-week low. These include AU Small Finance Bank, MAS Financial Services, CESC, Cummins India, and JustDial.
Stocks in news:
JK Tyre: JK Tyre and Industries share price jumped almost 10 percent after the company board approved raising stake in subsidiary.
Ashok Leyland: Shares of Ashok Leyland surged over 29 percent, a day after the company said it acquired an additional stake in its subsidiary Hinduja Leyland Finance.
India Cements: The share price of India Cements jumped almost 7 percent, a day after billionaire Radhakishan Shivkishan Damani bought 16 lakh shares of the company through a bulk deal.
Delta Corp: Delta Corp share price was locked in 5 percent upper circuit after the company said its board was to consider a proposal to buyback equity shares.
Nifty formed a bullish candle on daily charts.
In the next trading session if the index manages to sustain above 8,749 levels then it can head to test its 13-Day EMA placed at 8,978
Contrary to this a close below 8,304 levels can kick in some sort of profit booking as Nifty is almost up by around 15 percent in last three sessions from the lows of 7,511, say experts.
In such a scenario a dip between 8,000 – 7,800 can be a good opportunity to create fresh longs.
Positional traders who are sitting on long positions if any shall consider booking profits close to 8900 whereas fresh buying shall be initiated only on the correction, they say.
Three levels: 8304, 8749, 8900