Thursday 19 March 2015

Market Outlook for 20 March

The market cracked heavily in late trades on the back of aggressive selling pressure in banking and select index heavyweights like Reliance Industries and ITC.

Banking shares in particular were a cropper, as they led the rally in morning deals, and were also the chief draggers at the end of the day.

The Sensex rallied past the weekly R-2 (29,940) to give a fresh buy signal, but by ending below its weekly closing has neutralised the impact.

As per the weekly Fibonacci charts, the BSE index may now drop towards 28,170-odd levels, which is the weekly S-1 (support).

As per the daily Fibonacci charts, the Sensex on Friday, is likely to seek support around 28,255-28,185-28,120, while on the upside may face resistance around 28,685-28,755-28,820.

The NSE Nifty has ended below the 50-DMA (Daily Moving Average) for the second time in the last five trading sessions.

The Nifty has some crucial support around the lower-end of the Bollinger Band on the daily charts at 8,560-odd level, below the doors for a steeper fall towards the 200-DMA at 8,150-odd level may open.

Among the key momentum oscillators - the MACD (Moving Average Convergence-Divergence) is negative. The ADX (Average Directional Index) has also given a negative divergence. The  14-day RSI (Relative Strength Index) is in neutral mode, while the Stochastic Slow is marginally positive.

On Friday, the NSE Nifty may seek support around 8,570-8,545-8,530, while face resistance around 8,700-8,720-8,740.

The Bank Nifty may seek support around 18,570-18,495-18,420, while on the other hand face resistance around 19,055-19,130-19,205.

Wednesday 18 March 2015

Markets on slippery ground ahead of US FOMC meet

The Indian markets are trading on a soft note ahead of the outcome from today's FOMC meet. The US Federal Reserve is expected to announce its future direction on interest rates.

Analysts around the world are expected the US Fed to drop the word 'Patience' from its statement on interest rates.

The Bombay Stock Exchange (BSE) benchmark index, the Sensex, has so far dropped to a low of 28,600, and is now down 86 points at 28,650.

Mortgage lender, HDFC is the major dragger, down 1.3 per cent at Rs. 1,322. The stock alone has accounted for a loss of 32 points on the BSE index.

NTPC is the biggest per centage loser, down 2.2 per cent at Rs. 154. ONGC has shed 1.7 per cent at Rs. 309.

Hindustan Unilever, Tata Motors and BHEL have declined 1.3 per cent each to Rs. 919, Rs. 564 and Rs. 261, respectively.

On the other hand, Sesa Sterlite is the major gainer in the Sensex-30 stocks. It has rallied nearly 3 per cent to Rs. 198 on reports that the Environment ministry has revoked its ban on mining in Goa.

SBI, Sun Pharma and Hero MotoCorp are the other notable gainers. Tata Motors is trading on a dull note on the BSE in early morning deals, on the back of lower-than-expected global wholesales data.

Among other stocks, Cadila Healthcare surged 4 per cent to touch a high of Rs. 1,745 in early deals on back of new drug launch for treatment of Hepatitis C in India by the Zydus group.

Madhucon Projects has hit the 5 per cent upper circuit at Rs. 58.05 on winning fresh order worth Rs. 397 crore from National Highway Authority of India (NHAI).

VHCL is locked at the 10 per cent upper circuit at Rs. 6.67 after the company fixed the record date for the proposed bonus issue. The company to the BSE, VHCL has fixed 27 March, as the record date for 3:1 bonus issue, three free shares for every shareholder holding a share as per the record date.

Wockhardt is trading in the negative territory after the patent office refused a patent for an oral salt form of diacerein, used to treat osteoarthritis, invented by the company. The stock slipped over 3.5 per cent to a low of Rs. 1,850.

Aegis Logistics is trading at new life-time high, up 12.5 per cent at Rs. 608 on the back of renewed buying interest at the counter.

Sensex, Nifty rally in late trade

The Indian market yesterday ended with a flourish on account of aggressive all-round buying in the last 40-odd minutes of trade.

The Sensex rallied to hit a fresh day's high at 28,784 at the fag end of the day and finally ended with a gain of 299 points at 28,736.

The NSE Nifty touched a high of 8,743 and a low of 8,631 before settling with a solid 90-point gain at 8,723.

Among sectors, the Pharma index surged nearly 2 per cent at 12,717. The Bank Nifty, Auto, Energy, FMCG, Infrastructure and Metal indices also finished with gains of over a per cent each.

Pharma stocks were the major gainers on reports of that National Pharmaceutical Pricing Authority (NPPA) has fixed/ revised the prices for 509 formulation packs. Cadila Healthcare zoomed over 7 per cent to Rs. 1,702, and Piramal Enterprises surged 6.3 per cent to Rs. 888.

IPCA Labs soared over 5 per cent to Rs. 771. Dr.Reddy's rallied 3.5 per cent to Rs. 3,431. Strides Arcolab and Biocon advanced around 2.5 per cent each. Apollo Hospitals, Cipla, Aurobindo Pharma, Divis Labs, Sun Pharma, Ranbaxy and Wockhardt were up -2 per cent each.

Banking shares were the major movers in the late flurry. IndusInd Bank zoomed 3.5 per cent to Rs. 907 and Axis Bank jumped 2.5 per cent to Rs. 583. Federal Bank, Yes Bank, Kotak Bank, ICICI Bank and Bank of India were up 1-3 per cent each.

Among other frontline stocks - Larsen & Toubro, Tata Motors and HDFC advanced around 2.5 per cent each to Rs. 1,722, Rs. 570 and Rs. 1,336, respectively.

Heavyweights Reliance Industries and ITC added 1.5 per cent each to Rs. 856 and Rs. 341, respectively.

Jindal Steel & Power was the major loser. The stock tumbled over 8 per cent to Rs. 175 on news reports that the government is expected to reject two bids from the company for its Gare Palma and Tara coal fields.

HCL Technologies and Infosys declined a per cent each to Rs. 2,037 and Rs. 2,245, respectively.