Technical charts suggest +ve momentum: Some technical analysts believe a pullback rally might be on the cards. “The bulls have entered the lower band of the current consolidation zone of 7,700-7,900 for the near term. A harami pattern and a bullish reversal pattern formed in a downtrend preceded by a big red candle indicate that the bulls are not letting the current momentum to be in favour of the bears. We expect the market to sustain the support zone of 7,700 and may see consolidation to continue with a strong resistance at 7,900,” said Mustafa Nadeem, CEO, Epic Research.
“A buy signal will be generated if we have confirmation of breach of the upward resistance line at 7,770, as we have already closed above the 50-day SMA,” said Nadeem.
NEW DELHI: The S&P BSE Sensex slipped over 100 points in trade on Monday led by losses in index Reliance Industries, HDFC, ITC, HDFC Bank and ONGC.
The Nifty50 was trading around its crucial resistance level of 7,900 weighed down by losses in power, oil & gas, and metal stocks.
The broader market outperformed the benchmark indices with the BSE Midcap and smallcap indicies climbing 0.25 and 0.30 per cent, respectively.
Reliance Industries fell over 2 per cent in trade. The company reported earnings ahead of market expectation on Friday, but lacked clarity on Reliance Jio. There were concerns that delay in key projects might keep the upside limited for the stock.
Cairn India tumbled over 5 per cent in trade on Monday as the fourth quarter results of the energy company failed to lift the investor sentiment. The stock sank 5.11 per cent to hit a low of Rs 146.65 on BSE, before paring some of the lost ground.
Select midsized IT firms came under pressure after companies such as Persistent and Zensar reported less-tha-expected results for the March quarter.
Continuing its losing streak for the third day, the rupee fell 19 paise to 66.68 against the US dollar in early trade on Monday, a day ahead of the kick start of two-day the US Federal Reserve policy review.
The domestic currency had declined 9 paise to close at 66.49 on Friday on persistent dollar demand from banks and importers for the US currency.
Markets @ 9:20
The 30-share index was trading at 25,826, down 12 point or 0.05 per cent. It touched a high of 25,891.03 and a low of 25,824.68 in morning trade.
The Nifty50 was trading at 7,896 down 2 points or 0.03 per cent. It touched a high of 7,911.00 and a low of 7,892.60 in the first 30 minutes of trade.
Bharti Airtel (up 1.5 per cent), Bajaj Auto (up 1.05 per cent), Adani Ports (up 1.04 per cent), L&T (up 0.8 per cent), and Dr Reddy’s Laboratories (up 0.7 per cent), were the major Sensex gainers.
NTPC (down 1.4 per cent), Tata Steel (down 1.1 per cent), RIL (down 1.06 per cent) and HDFC (down 1.05 per cent) were the only Sensex losers.
Seven things traders are talking about on Dalal Street this morning
Cues from Singapore negative:At 07:45 am, Nifty50 futures on the Singapore Stock Exchange were trading 14.50 points lower at 7,900.50, indicating a negative opening for the domestic market.
RIL results to influence stock:Reliance Industries on Friday reported 15.9 per cent year-on-year increase in net profit at Rs 7,398 crore ($1.1 billion) , including exceptional items, for the quarter ended March 31, compared with Rs 6,381 crore reported for the corresponding period of the previous year.
“The results announced by RIL were above market expectations and we expect an upside of 2-4 per cent in the stock on Monday . But the upside is capped as the stock has a tough resistance in the Rs 1,070-1,090 range,” said Nirdosh Gaur, Managing Director and CEO, Moneypalm.
Market expert Sudip Bandyooadhyay said: “The profit number is definitely much better than expectations. However, the long-term improvement in the stock price will depend on management commentary on Reliance Jio, KG-D6 and other matters. We will have to wait and watch if there is something substantial and positive pertaining to these issues. Only then, may we see a sustained uptrend. Otherwise, beyond a small pop, nothing is going to happen.”
Technical charts make bearish pattern:The Nifty50 has made a bearish candle on the weekly charts and the opening of Monday will be very important, said Mustafa Nadeem, CEO, Epic Research.
“If we close below 7,850 on a spot basis, then we may see correction towards the 7,750 level, where we may fill the gap. Open interest data indicates indecisiveness in the market and we will have to look at writers’ action in the coming week to have a mandate on Nifty levels,” the expert said. April futures and options contracts will expiry on Thursday.
Earnings to trigger stock-specific action:A handful of companies are going to announce their March quarter earnings during the day. The list includes UltraTech Cement, ABB, Indiabulls Realty, Welspun India and Delta Corp, among others.
Over the week, we would seen results by frontline companies such as Maruti Suzuki, Bharti Airtel, ICICI Bank and Axis Bank . A couple of cement stocks such as Ambuja Cement, ACC and UltraTech Cement, and others such as IDFC Bank, Yes Bank, Idea Cellular and HCL Technologies will also announce their quarterly results in the coming week.
Budget session begins today: The second half of the Budget session will kick off later in the day. The government is unlikely to push its labour reform bills during this Parliament session as protests over proposals to tax and restrict PF withdrawals has put it “on the back foot”, a trade union leader told PTI last week.
“The recent events in Uttarakhand could cast a shadow on the business in both Houses,” Pankaj Sharma, Head of Equities, Equirus Securities told ETMarkets.com.
Asian markets stay negative: Most Asian markets were trading lower this morning. Japan’s benchmark Nikkei was trading 0.76 per cent lower at 17,439.62. China’s CSI300 dropped 0.78 per cent to 3,150.25. Other Asian indices, including Hong Kong’s Hang Seng (down 0.53 per cent), South Korea’s Kospi(down 0.13 per cent) and Taiwan’s TWSE (up 0.12 per cent), were trading mixed.
US market inched up on Friday: The Dow Jones industrial average rose 21.23 points, or 0.12 per cent, to settle at 16,703.40 in Friday’s trade. The S&P500 settled 0.10 points, or 0.01 per cent, higher at 2,091.58