Traders’ Diary: Long build-up in Cipla, Torrent Pharma, Biocon and Lupin
Sensex tumbled 674 points, weighed by losses in banking stocks as unabated spike in new Covid-19 cases fuelled uncertainty over the economic impact of the pandemic.
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Nifty has immediate support at 8,000. If it fails to hold above that, we may see a sharp cut towards the 7,800-7,500 zone. Resistance for the coming week is seen in the 8,350-8,500 range. Only above the 8,350 level, we may see some relief
- Rohit Singre, Senior Technical Analyst, LKP Securities
Nifty needs to sustain above the 7,800 level in the current leg of fall. In case it closes below 7,610, the weakness will be confirmed, which will open up more downsides. For the time being, traders are advised to remain neutral and wait for stability to emerge
- Mazhar Mohammad, Chartviewindia.in
A formation of the Bearish Belt Hold reinforces the downtrend. The hourly chart showed Nifty has retraced 61.8 per cent of the previous rise from 7,511 to 9,038 level. Going forward, the 8,000-7,920 range will be a key area to watch out for, below which Nifty can tumble all the way down to 7,511 level. On the other hand, the 8,300-8,350 range will act as a crucial resistance zone
Nifty’s weekly setup is negative and small bounces are getting sold off quickly as it is making lower highs from last seven consecutive weeks. Thus, traders should refrain taking long positions. Going forward, resistance for Nifty is placed at 8,350 and 8,555 levels, while support is now placed at 7,700 and 7,500 levels
Indian benchmark indices continued to plunge, after a surge in the number of coronavirus cases in India. We believe the market trend will continue to remain challenging until the fresh cases start to decline. Though the defensive pack is playing saviour, the damage in other sectors is more severe and that would keep the markets under pressure ahead also. In short, traders should continue with short bets while keeping the focus on risk management
Depositories National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) on Friday revised Foreign Portfolio Investment (FPI) limits for all listed stocks on Indian bourses. The move comes in the wake of MSCI’s decision to defer changes to India’s weightage in its global indices, citing lack of implementation of the government decision to raise the statutory FPI limit in domestic companies from 24 per cent to the respective sectoral foreign direct investment (FDI) limits. That FPI limit change was to take effect on Wednesday, April 1, 2020.
The market opened and stayed negative, with reduced volatility. A ratings downgrade for the banking sector, due to the impact of Covid-19 and ensuing stressed asset concerns, impacted the financial stocks. FIIs were net sellers to the tune of Rs 1,100 crore on April 1, and showed no signs of reversal. The market is trading uncertainty, regarding the spread of the virus in India, as hope emerged of infections peaking in some of the worst affected global markets
- Vinod Nair, Head of Research at Geojit Financial Services
The Reserve Bank of India on Friday revised the timing for money markets instruments from 10 am-2 pm.These changes will come into effect on April 7 and will continue up to April 17, the central bank said in a release.
Equity benchmark Sensex tumbled 674 points on Friday, weighed by losses in banking stocks as unabated spike in new Covid-19 cases fuelled uncertainty over the economic impact of the pandemic. After hitting a low of 27,500.79 during the day, the 30-share BSE barometer ended 674.36 points or 2.39 per cent lower at 27,590.95.
How Kenneth Andrade is navigating these uncertain times
After a steep selloff, markets generally go into a consolidation mode, spanning 3-6 months, says the Head of Advisory at Angel Broking.
Brent reverses losses to rise above $30/bbl
Benchmark Brent crude oil futures reversed losses incurred during Asian hours in early European trading on Friday to rise above $30 a barrel, with hopes of a huge global supply cut deal to support prices still alive. Brent crude futures were up 7 per cent, or $2.10, at $32.04 per barrel by 0748 GMT.
RBL Bank, STFC, ICICI Bank among top 10 NSE losers
Price as on 03 Apr, 2020 02:07 PM, Click on company names for their live prices.
S&P BSE Healthcare biggest sectoral gainer, up nearly 4%. Lupin surges 11%, Sun Pharma Apollo Hospitals 9% each. This is how the index stocks are performing.
This is how the aviation stocks are doing today.
Price as on 03 Apr, 2020 01:04 PM, Click on company names for their live prices.
Brent crude back above $30/bbl, rises over 7% from day's low
Bank shares tank after Moody's changes outlook on Indian banks to negative
Price as on 03 Apr, 2020 12:54 PM, Click on company names for their live prices.
Markets @ 12.30pm: Sensex down nearly 500 points, Nifty below 8,150. This is how the Sensex traded in the morning session.
US economy to shrink at fastest rate since 1946: Morgan Stanley
The United States economy will shrink 5.5% in 2020, the steepest drop since 1946, with a huge 38% contraction predicted for the second quarter, Morgan Stanley said on Friday in a new batch of forecasts on the economic damage from the coronavirus outbreak. The U.S. bank said it had cut its first-quarter forecast to an annualised 3.4% contraction from a previous 2.4%, while in the second quarter the economy is predicted to shrink 38%, up from an earlier forecast of a 30% contraction.
Australia shares end lower as pandemic-driven recession fears mount
Tourism and hospitality stocks mixed; IRCTC gains 5%, Lemon Tree plunges 6%
Price as on 03 Apr, 2020 12:11 PM, Click on company names for their live prices.
S&P confirms US AA+ rating with stable outlook
The financial rating agency Standard and Poor's confirmed on Thursday the AA+ rating for the United States' long-term debt despite the recent passage of a historic $2 trillion aid package to combat the novel coronavirus. S&P also indicated that it had no intention of changing the rating for the time being due to a stable outlook.
2020 is shaping up to be a year of Black Swan and I would not rule out the US doing something now. Does it actually join in the OPEC, non-OPEC alliance as a full-fledged non-OPEC contributor, it is hard to say but does it offer some part of a courage that allows Russia and Saudi Arabia to put aside that feeling of pain that they should be doing all of this to throw Shale a lifeline? That could just happen.
- Vandana Hari
Bajaj Auto total sales down 38% in March
Bajaj Auto on Friday reported 38 per cent decline in total sales to 2,42,57 units in March as against 3,93,351 in the same month last year. Total domestic sales fell 55 per cent to 1,16,541 units last month as compared to 2,59,185 units in March 2019, Bajaj Auto said in a statement.
Coronavirus situation may prolong
- Vishwavir Ahuja, RBL Bank
JSPL FY20 crude steel output grows 12% to 8.17 MT
Jindal Steel and Power Ltd (JSPL) on Friday said its annual crude steel production and sales figure for the fiscal year ended March 31, 2020 stood at 8.17 million tonne (MT) and 7.92 MT, respectively. In 2018-19 fiscal, the consolidated steel production of the company stood at 7.30 MT, while, sales were at 7.22 MT, JSPL said in a statement. According to JSPL, this is the "highest annual crude steel production and sales figure".
Opec+ preparing for a meeting, possible next week: Agencies | https://t.co/V2PFWVXLaG https://t.co/885ZgfL2gi
Shares of Aurobindo Pharma tumbled 10 per cent in Friday's trade after it called off the $1 billion Novartis' Sandoz oral solid and dermatology portfolio acquisition due to considerable delays in gaining US FTC approval.
Credit Suisse has downgraded the stock to 'underperform' from 'neutral' with a target of Rs 345. It said that the deal was value accretive and one of the important catalysts.
"Had the deal been successful, it would have added 15 per cent annualized to our EPS estimates and added significant scale, catapulting ARBP as the second largest generic player in the US," said Emkay Global.
"The deal termination will remove a near-term earnings driver given the meaningful $900 million sales accretion to ARBP’s US sales, as well as significant cost synergies, though, conversely, it will also help improve the medium-term growth profile, given our concerns over a slowing growth profile for the combined entity," Kotak Institutional Equities said.
Switch off lights for 9 minutes at 9 pm on Sunday; light a lamp to mark a new beginning: PM Modi
PM Modi praises states, citizens in fight against coronavirus
PM Narendra Modi on Friday praised states and citizens for their discipline in the fight against coronavirus. World is copying India's 'Janta Curfew', he said adding that India may be in lockdown, but none is alone in this fight.
Nifty futures on the Singapore Exchange traded 66.25 points or 0.81 per cent higher at 8,226, indicating a positive start for Dalal Street.
Tech view: Nifty forms Bearish Belt Hold
Nifty on Wednesday tumbled 4 per cent in a session, which was ruled entirely by the bears. The selling kicked off from the word go and ended near the day’s close, as the index formed a Bearish Belt Hold pattern on the daily chart. Analysts said the index needs to defend the 8,250 level to avoid further rounds of selling.
PM Modi to share video message today
Prime Minister Narendra Modi is set to make his first video address following the announcement of the 21-day lockdown on March 24. "At 9 AM tomorrow morning, I will share a small video message with my fellow Indians," the prime minister tweeted, without divulging the subject of his message.
Oil prices pare record gains
Oil prices fell on Friday, coming off their biggest one-day gains in the previous session after US President Donald Trump said he had brokered a deal between Saudi Arabia and Russia to cut output, but made no offer to reduce U.S. production. Brent crude futures fell 3 per cent, or 9 cents, to $29.05, after having soared 21 per cent on Thursday.
Asian shares mixed in early trade
Asian markets on Friday looked to latch onto Wall Street's overnight gains. Nikkei futures edged slightly higher, and Australia's benchmark was up 1.5 per cent in early trade. Hong Kong futures were negative. E-Mini futures for the S&P500 fell 0.04 per cent. A gauge of stocks across the globe advanced 1.24% overnight, adding to modest gains earlier in Europe.
US stocks rose 2% overnight
The Dow Jones Industrial Average jumped 469.93 points, or 2.24 per cent, to 21,413.44. The S&P 500 was up 56.40 points, or 2.28 per cent, to 2,526.90. The Nasdaq Composite Index rose 126.73 points, or 1.72 per cent, to 7,487.31.
March GST collections at Rs Rs 97,597 crore
Goods and services tax collections for March stood at Rs 97,597 crore, falling way short of Rs 1.15 lakh crore target set by the government. Rs 1.05 lakh crore was collected in the month of February.
FIIs sell Rs 1,117 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,116.79 crore on Wednesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 450 crore, data suggests.
Sensex, Nifty on Wednesday
Markets began the new fiscal with yet another bruising selloff on Wednesday as global sentiment remained grim due to the Covid-19 pandemic. Reversing the previous session's gains, the 30-share BSE barometer Sensex slumped 1,203.18 points or 4.08 per cent to finish at 28,265.31. Similarly, the NSE Nifty tanked 343.95 points, or 4 per cent, to close at 8,253.80.
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