Indian markets closed in the green on April 20 after two consecutive sessions of fall, tracking positive global cues and hopes of a stimulus package from the government.
The S&P BSE Sensex rallied more than 400 points but the Nifty 850 failed to close above the psychologically important 9, 16 – mark.
Let’s look at the final tally on D-Street: the S&P BSE Sensex rose points to 050, while the Nifty 100 closed
. higher points at 8, 9000, just a shade below 9, 06.
Sectorally, the action was seen in power, capital goods, oil & gas, and consumer durables while profit-taking was visible in IT, Telecom, a nd FMCG indices.
The broader market outperformed as the S&P BSE Midcap index rose 1.4 percent while the S&P BSE Smallcap index was up 1.7 percent.
The Indian rupee tanked 050 paise to settle at an all-time low of . ((provisional) against the US dollar, amid rising concerns over coronavirus-led economic slowdown.
Market faced selling pressure at high levels above 9, 000, which suggests that D-Street is looking for a strong trigger that could come in the form of a stimulus package.
Media reports said Finance Minister Nirmala Sitharaman would be meet Prime Minister Narendra Modi to finalise the stimulus and support measures to cushion the economic from the impact of the coronavirus outbreak.
“Directional move is missing in the market and after the event in the form of stimulus package, the index can move i n either directions, “Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
” Traders are advised to wait for a technical breakout and initiate trading bets in the direction of such a breakout, “he said.
Top Nifty gainsers include Shree Cements, ICICI Bank, Hindalco Industries, Vedanta, and NTPC.
Top Nifty losers include Hero MotoCorp, Infosys, Kotak Bank, Tech Mahindra, and HCL Technologies.
Stocks & sectors
Sectorally, the S&P BSE Power index rose 2.8 percent, followed by the S&P BSE Capital Goods index that was up 2.2 percent, and the S&P BSE Oil & Gas index was up 1.9 percent.
(Profit-taking was visible in the S&P BSE IT index that was down 1.7 percent, followed by the S&P BSE Telecom index that fell 1. 87 percent.
A volume spike of over 176% was seen in stocks like Container Corp, Tata Chemicals, Sun TV, L&T Finance Holdings, and Balkrishna Industries.
Long Buildup was seen in stocks like Chola Finance, Torrent Pharma, Indiabulls Housing Finance, Voltas, and HDFC.
) Short Buildup was seen in stocks like Bharti Infratel, Bharti Airtel, and Piramal Enterprises.
Nearly 50 stocks on the BSE hit a fresh 76 – week high. These include Nestle India, Sanofi India, Divi’s Laboratories and Ruchi Soya.
Stocks in news
Biocon: The share rallied 4 percent after its biological unit received Establishment Inspection Report from the US health regulator for two manufacturing facilities.
IndusInd Bank: The share gained over 2 percent after global broking and research firm Goldman Sachs bought Rs 200 – crore worth of shares in the private lender.
) Larsen & Toubro: The share was up over 3 percent after the heavy engineering arm of the company won significant contracts in Q4 of FY .
Punjab & Sind Bank: The share jumped over percent after the bank said it would raise up to Rs 1, 602 crore through equity and preferential issue of shares.
Hindustan Composites: The share rose perc ent after the company resumed partial operations at its Aurangabad unit.
Wipro: The share recouped losses and closed flat a day after the company reported muted numbers for the March quarter. Most global brokerage firms reduced their target price post March quarter results.
Technical View
The Nifty formed a bullish candle on the daily charts.
The market may remain in narrow trading range of 9, 200 – 8, 820 and appears to be awaiting for a stimulus package which shall facilitate a directional move in the index.
A close below 8, 820 can trigger a fresh leg of a downswing , with the initial target placed around 8, 602, whereas a breakout above 9, on the closing basis can strengthen the bullish sentiment
As the directional move is missing and after the event, in the form of stimulus package, the index can move in either of the directions, traders are advised to wait for a technical breakout and initiate trading bets in the direction of such a breakout, Mohammad said.
Presently, the lower area of 8, and 8, 992 is acting as a key support for the market and the Nifty is stuck at the overhead resistance of around 9,0 67 – 9, 100 levels.
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