INSUBCONTINENT EXCLUSIVE:
Domestic stocks continued to be hammered amid fears about the spread of coronavirus and back home concerns over possible cascading effect of
Domestic equity benchmark Sensex fell 720 points, or 1.88 per cent, for the week to close at 37,576, while Nifty dropped 212 points, or 1.89
per cent, to 10,989.
While the YES Bank fiasco came in as an out-of-syllabus question for Dalal Street, it also raised questions over the
While the global markets are struggling on the back of coronavirus worries, the Yes Bank fiasco has come as a major setback
There is a need for some clarity on both domestic and global fronts for the market to witness any pullback; otherwise the pain will
in Washington state, bringing the nationwide toll to 19, while the number of confirmed cases in New York rose to 89
Italy announced lockdown of the entire region of Lombardy and a number of provinces in other regions, affecting a quarter of the Italian
World Health Organization said there were at least 103,168 cases till now while global deaths were pegged at 3,507.
Oil war breaks outSaudi
the most in at least 20 years, offering unprecedented discounts in Europe, the Far East and the United States to entice refiners to
purchase Saudi crude at the expense of other suppliers
The nation also plans to increase oil output next month, going well above 10 million barrels a day, as the kingdom responds aggressively to
the collapse of its Opec+ alliance with Russia.
While those factors set the stage for global equity markets for the week ahead, the YES Bank
crisis will also add to investor anxiety in the domestic market, which will operate a day less next week because of the official Holi break
falling knifeThe week gone-by was majorly dominated by bears as we witnessed selling pressure at higher levels
Nifty continued to make lower highs - lower lows for third consecutive week and closed below its crucial support of 100 EMA and rising trend
The RSI oscillator also gave trend line breakdown on weekly chart, indicating further weakness in the index
Resistance is gradually shifting lower and now 11,250 and 11,433 levels would be immediate hurdles for the index.
Supports are placed at
11,800 and then 11,650 levels
On the options front, maximum Call open interest was at 12,000 and then 11,500 levels while maximum Put OI was at 11,000 and then 10,500
There was Call writing at 11,000 and 11,500 levels and Put unwinding at all immediate strike prices
Option data indicated a shift in trading range to 10,600-11,333 zone
Tech view: Nifty tech charts indecisiveNifty formed an indecisive 'Spinning Top' on the daily chart on Friday
It is in the oversold zone and levels around 10,800-900 could offer some support
On the upside, the index should face resistance around the 11,100-11,200 zone, analysts said
In terms of the price pattern, Nifty has broken down from a multi-month Ending Diagonal pattern, which suggests it is in a downtrend, not
only for the short term, but also for the medium term.
Stocks showing bullish biasMomentum indicator Moving Average Convergence Divergence
(MACD) on Friday showed bullish trade setup on the counters of Syndicate Bank, Biocon, Pidilite Industries, Future Enterprises, Asian
Paints, SMS Pharmaceuticals, J B Chemicals - Pharma, SMS Lifesciences, Gateway Distriparks, Venus Remedies, PI Industries, Vidhi Specialty
Food, Biofil Chemicals, Astec Lifesciences, Finolex Industries and Pearl Polymers.
The MACD is known for signalling trend reversals in
traded securities or indices
It is the difference between the 26-day and 12-day exponential moving averages
When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement
and vice versa.
Stocks signalling bearish biasThe MACD showed bearish signs on the counters of YES Bank, Zee Entertainment, Suzlon Energy,
NLC India, Ajanta Pharma, Ipca Laboratories, Omaxe, Vivimed Labs, Mukand, Responsive Industries, Star Cement, SORIL Infra Resource, BF
Investment, Ortin Laboratories, Sutlej Textiles, The Mandhana Retail, Ravi Kumar Distiller, Hatsun Agro, MPS, Gandhi Special, Asahi Songwon
Colors and PDS Multi Fashions
Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey
traded: 10.60 crore), Tata Motors (Shares traded: 8.40 crore), Ibull HousingFin (Shares traded: 4.32 crore), GMR Infra (Shares traded: 4.31
(Shares traded: 3.71 crore), ICICI Bank (Shares traded: 3.10 crore), IDFC First Bank (Shares traded: 2.78 crore) and ITC (Shares traded:
1960.36 crore), YES Bank (Rs 1865.32 crore), IndusInd Bank (Rs 1662.02 crore), ICICI Bank (Rs 1510.52 crore), Bajaj Finance (Rs 1372.92
crore), HDFC Bank (Rs 1295.77 crore), HDFC (Rs 1143.95 crore), Indiabulls Housing Finance (Rs 1090.17 crore) and Tata Motors (Rs 964.70
crore) were among the most active stocks on Dalal Street on Friday in value terms
Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Stocks seeing buying
interestPidilite Industries, Divi's Laboratories and Sanofi India witnessed strong buying interest from market participants as they scaled
their fresh 52-week highs on Friday signalling bullish sentiment.
Stocks seeing selling pressureYES Bank, United Bank, Allahabad Bank,
Other sectoral indices that ended lower included Auto ( down 0.88 per cent), IT ( down 1.39 per cent), Bankex ( down 3.46 per cent),
Consumer Durables ( down 1.37 per cent), Capital Goods ( down 1.72 per cent) and Power (down 2.49 per cent).
European markets in deep
depressionEuropean stocks fell sharply Friday as the coronavirus outbreak continues to impact businesses worldwide
The pan-European Stoxx 600 closed 3.6% lower provisionally, with oil and gas shares sinking 5.5% to lead losses as all sectors and major
bourses slid into the red
FTSE fell 3.6 per cent on Friday to close at 6,462, Dax lost 3.37 per cent to 11,541 and CAC slipped 4.14 per cent to 5,139.
Downslide
continues in US marketsUS stocks, bond yields and oil prices dropped sharply again Friday, extending a roller coaster week as investors
continued to weigh the global economic disruption from the virus outbreak
Dow dropped 256 points to close at 25,864, cutting losses after briefly sliding nearly 900 points
The S-P500 declined 1.7% to end at 2,972.37, putting the broad index off 12% from its recent high
The technology-heavy Nasdaq Composite fell 1.9% to finish at 8,575.
