Indian markets remained under pressure on April 13, tracking weak global cues. The S&P BSE Sensex failed to hold on to 31,000, while the Nifty50 breached its crucial support placed at 9,000.
Let’s look at the final tally on D-Street: the S&P BSE Sensex fell 469 points to 30,690 while the Nifty50 closed 118 points lower at 8993.
Sectorally, the action was seen in telecom, capital goods, metals, and infra stocks while profit-taking was visible in realty, consumer durables, finance, auto and banks.
The broader markets outperformed – the S&P BSE Midcap index fell 0.93 percent while the S&P BSE Smallcap index was down 0.46 percent.
The market witnessed last hour selloff ahead of Prime Minister Narendra Modi’s address on April 14, when the 21-day nationwide lockdown ends. He is expected to spell out the plan his government has put in place to curb the spread of the coronavirus.
Markets will be shut on the day on account of a public holiday.
Although D-Street has factored in a possible extension of the lockdown, there are also reports of a restrictions being eased for certain sectors that should support sentiment.
“The market has seen a decent run-up recently led by rising hopes of the stimulus package from the government amid positive global cues. And, now the Prime Minister's speech, which is scheduled tomorrow at 10 am, would also be actively tracked for the roadmap to fight the coronavirus and measures to kick start the economic activities,” Ajit Mishra, VP - Research, Religare Broking Ltd said.
“Besides, we shall be seeing the participants reacting to the CPI number in early trade on Wednesday i.e. April 15. Needless to say, volatility will remain high in the coming sessions, too, and traders have no option but to align their positions accordingly,” he added.
Top Nifty gainers include Adani Ports, Bharti Airtel, Hindalco Industries and L&T.
Top Nifty losers include M&M, Bajaj Finserv, ZEE Entertainment and Bajaj Finance.
Stocks & sectors
Sectorally, the S&P BSE Telecom index rose 4.8 percent, followed by the S&P BSE Capital Goods index that gained 3.6 percent and the S&P BSE Metal index rose 2.09 percent.
Profit taking was seen in the S&P BSE Realty index, which fell 4.9 percent followed by the S&P BSE Consumer Durable index that was down 3.7 percent and the S&P BSE Finance index ended 2.7 percent lower.
Volume spike of 100-700% was seen in Torrent Pharma, Coal India, Wipro, ZEE Entertainment, CESC, and Idea Cellular.
Long Buildup was seen in Ujjivan Financial Services, Glenmark, Idea Cellular, and Cadila Healthcare
Short Buildup was seen in Torrent Pharma, Shriram Transport, Apollo Tyres, and Godrej Consumer Products.
Nearly 200 stocks hit a fresh 52-week low that includes SBI Cards, Phoenix Mills, Inox Leisure, Prataap Snacks, Oberoi Realty, Muthoot Capital and Godrej Industries.
Stocks in news
Zee Entertainment: Share price fell over 8 percent. In a BSE filing on April 9, the company said that the board at a meeting held a day earlier agreed to extend financial and operational support to SugarBox, a company in which Zee acquired 80 percent stake in 2017.
Dr Reddy's Labs: The share gained 3 percent after the company launched blood cancer drug Invista in the country and received Establishment Inspection Report (EIR) from the US health regulator for a Telangana facility.
Lupin: The share gained over 4 percent on after the pharma major’s Nagpur facility received EIR from the US health regulator.
GPT Infraprojects: The Share price rallied 17 percent on after the company received a Rs 114.68-crore road-widening order in Manipur.
L&T: The share price jumped over 6 percent after the company bagged orders for its water and effluent treatment business.
Technical View
The Nifty formed a small bearish candle.
The near-term support appears to be placed around 8,900, whereas critical support on short-term charts is placed at 8,770 in the form of 13-day exponential moving average (EMA)
The strength in the index shall resume on a close above 9,131, which is likely to open doors for the next target at around 9,700-9,900.
Traders are advised to buy only the strength above 9,132 levels and look for bigger targets with a stop below 8,900. For the time, it would be prudent to avoid buying the dip, say experts.
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