NEW DELHI: Domestic equity market halted its two-day rout on Wednesday, but gave up almost all of its gains, as there was no respite from the rapid spread of the coronavirus.
Sensex inched up 62.45 points, or 0.18 per cent to close at 35,697.40, while Nifty ended 2.55 points down at 10,448.90.
Earlier in the day, Sensex had risen as much as 1.08 per cent or 386.56 points, while Nifty gained 0.89 per cent or 93.65 points.Dalal Street has been suffering major damage due to the panic over the economic fallout of the coronavirus outbreak, which has been causing a deep crack in the financial markets globally.Though the market bounced back on Wednesday, it is likely to remain under pressure till the coronavirus spread doesnt slow down.
However, with this correction, the earnings yield have turned higher than bond yields, thus providing attractive entry points into many fundamentally strong companies.
Until we see a semblance of normalcy returning, we would advise traders to stick to selective buying into quality stocks, said Siddhartha Khemka, Head - Retail Research, MOFSL.Heres what indicators are suggesting for the stock market action on Thursday:European shares rise after 5 daysStock markets from the region gained as the Bank of England made an emergency half-point cut to interest rates and launched a package of other measures to combat a coronavirus-driven economic slowdown, Reuters reported.
At 7.30 pm IST, the Euro Stoxx was 0.77 per cent higher, while Germany's DAX was up 0.52 per cent and France's CAC 40 was 0.76 per cent in the green.
The UK's FTSE 100, however, was 0.12 per cent lower.Wall Street resumes selloffUS stock indexes fell sharply at the open on Wednesday as investors were skeptical about President Donald Trump's stimulus plan to combat the coronavirus epidemic.
At 7.30 pm IST, the Dow Jones Industrial Average was down 3.05 per cent at 24,254, while S-P 500 and Nasdaq Composite were 2.76 per cent and 2.14 per cent lower, respectively.F-O: Dont buy till strong buy signal emergesOn the options front, maximum Call open interest is at 12,000 and then 11,500, while maximum Put open interest is at 10,000 and then 10,500.
There was Call writing at 10,900 and then 10,700 while Put writing was seen at 10,000 then 10,200.
Options data indicated a shift in lower trading range between 10,200 and 10,800 levels.Tech View: Nifty may test 10,000 levelNifty on Wednesday halted a falling spree and formed a bullish candle on the daily chart.
During the day, the bulls managed to defend the recent low of 10,294.
Analysts said sustainability of this level would be crucial for the market bias to turn positive.
A up-move above the 10,550 level could trigger more upside, they said.Podcast: Top Nifty stocks to buy after correctionStocks showing bullish biasMomentum indicator Moving Average Convergence Divergence (MACD) on Wednesday showed bullish trade setup on the counters of Bharti Infratel, Welspun Enterprises, A2Z Infra Engineer, Gujarat Pipavav Port, Dixon Technologies and Khadim India.
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.
A nine-day exponential moving average, called the signal line, is plotted on top of the MACD to reflect buy or sell opportunities.
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 Power Grid, Syndicate Bank, Bandhan Bank, Lupin, Havells India, Jump Networks, Ipca Laboratories, Colgate, UFO Moviez India, Music Broadcast, Thirumalai Chemicals, Shree Digvijay, Aavas Financiers, CSB Bank, Kajaria Ceramics, Dr.
Lal Pathlabs, Digicontent, SMS Pharmaceuticals, 3M India Ltd., Lotus Eye Hospital, The Grob Tea Company and Rajdarshan Indus.
Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.Wednesdays most active stocks in volume termsVodafone Idea (shares traded: 72 crore), YES Bank (shares traded: 41.34 crore), Tata Motors (shares traded: 11.11 crore), SBI (shares traded: 9.08 crore), ONGC (shares traded: 6.35 crore), Indiabulls Housing Finance (shares traded: 5.56 crore), GAIL (shares traded: 4.95 crore), NCC (shares traded: 3.92 crore), RBL Bank (shares traded: 3.69 crore) and SAIL (shares traded: 3.65 crore) were among the most traded stocks in the session.Wednesdays most active stocks in value termsRIL (Rs 3,153.54 crore), SBI (Rs 2,276.94 crore), HDFC Bank (Rs 1,964.75 crore), ICICI Bank (Rs 1,443.00 crore), HDFC (Rs 1,426.71 crore), TCS (Rs 1,331.61 crore), Indiabulls Housing Finance (Rs 1,147.23 crore), Bajaj Finance (Rs 1,132.64 crore), Tata Motors (Rs 1,132.19 crore) and YES Bank (Rs 1,128.59 crore) were among the most active stocks on Wednesday 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 and Suven Pharmaceuticals witnessed strong buying interest from market participants, as they scaled their fresh 52-week highs on Wednesday, signalling bullish sentiment.Stocks witnessing selling pressureGAIL, Apollo Tyres, Corp Bank, Tata Steel and Oil India witnessed strong selling pressure in Wednesdays session and hit their 52-week lows, signalling bearish sentiment on these counters.Buzzing sectors in Wednesdays tradeAmong the sectoral indices on BSE, the Metal index settled 1.63 per cent down at 7,297.19 .
Other major sectoral indices, which closed lower included Auto (down 0.94 per cent), IT ( down 1.53 per cent) and Power (down 0.02 per cent).
While Bankex ( up 0.23 per cent), Consumer Durables ( up 0.97 per cent), Capital Goods ( up 0.38 per cent) and Capital Goods (up 0.38 per cent) ended with gains.