Taking Stock | Pullback rally! Sensex rallies 1,000 pts, but will the rally last?
Tracking strong global cues, both Sensex and Nifty50, rallied to close above crucial resistance levels on Tuesday in a single trading session.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas:
The intraday chart reveals that the rise is a corrective structure & is likely to be followed by the next leg down. Thus the bounce is an opportunity to initiate a fresh short position. On the downside, the swing low of 8244 is the initial level to watch out for below which Nifty can witness a swift fall towards the 8000 mark.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Nifty has formed good support near 8240-8150 zone and if managed to hold above said levels then we may see some more bounce towards immediate resistance of 8700-8800 zone.
S Ranganathan, Head of Research at LKP Securities:
Markets were up today led by key heavyweights and supported by Technology stocks. Auto stocks continued to play spoilsport ahead of the monthly numbers to be released tomorrow which are expected to be weak. Today's trade witnessed spirited buying across sectors like Pharma & FMCG as the street moved funds towards defensives across companies who are likely to navigate through the lockdown with minimum damage.
Vinod Nair, Head of Research at Geojit Financial Services:
Mirroring positive global market, Indian markets also reacted positively on the last day of the financial year. Almost all sectoral indices were up & volatility index was also down by 10%. Chinese economic data, Industrial production numbers improved & helped the global momentum, especially in Metals, Pharma and FMCG. FII selling also slowed down over the last 2 days, although that may not be sustainable. The performance of global market will be the key driver for Indian market in the near-term.
Market Close: Benchmark indices bounced back on March 31 with Nifty ended near 8,600 level but erased some of its intraday gains.
At close, the Sensex was up 1,028.17 points or 3.62% at 29468.49, and the Nifty was up 316.65 points or 3.82% at 8597.75. About 1495 shares have advanced, 767 shares declined, and 150 shares are unchanged.
BPCL, Britannia Industries, Reliance Industries, ITC and Gail were among major gainers on the Nifty, while losers include IndusInd Bank, Eicher Motors, Cipla, Zee Entertainment and Bajaj Finserv.
All the sectoral indices ended in the green led by energy (up 7 percent) followed by FMCG, metal, IT and pharma. BSE Midcap and Smallcap indices rose 2.5 percent and 3 percent respectively.
CRISIL has re-affirmed Crompton Greaves Consumer Electricals' Non-Convertible Debentures rating at CRISIL AA+/stable and Long Term Bank Loan Facilities at AA+/stable.
Morgan Stanley on Financials:
Morgan Stanley expect banks to reduce deposit/lending rates. The lower rates, with slower growth, will impact margins over the next few quarters, reported CNBC-TV18.
The potential partial offset could be lower savings deposit rates. Meanwhile, the medium-term outlook is strong, unless NPLs rise.
The 50 bps rate cut at private banks could help improve margins by 5-15 bps. Structurally, private banks well placed to improve margins over the medium term.
Indian stock market continues trading in the green tracking its Asian peers. Sensex is up 1,137.71 points or 4.00% at 29578.03, and the Nifty up 342.50 points or 4.14% at 8623.60.
Morgan Stanley put Equal-weight call on HCL Tech: Research house kept a target at Rs 525 per share. The company does not expect significant impact from COVID-19 on the current quarter. The exposure to verticals like oil & gas, travel, high end-retail is in single digits, reported CNBC-TV18.
Nifty Energy Index lead the sectors with 7 percent gains:
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Rupee traded positive as the global market witness some respite on corona spread font. The next two days where the currency market will remain close which can see sharp gap opening on Friday which can take rupee weakness to near 76 or above 75.