Taking Stock: Nifty50 rallies 4% on F&O expiry; falls 25% in March series
The bulls remained in charge of D-Street from the beginning of the session on March 26 pushing the S&P BSE Sensex higher by over 1,400 points while the Nifty50 reclaimed 8,600 levels on the March F&O expiry day.
Nagaraj Shetti, Technical Research Analyst of HDFC Securites:
The short term trend of Nifty continues to be positive. Having moved up sharply in the last few sessions, there is a possibility of minor downward correction from the resistance of around 8750-8850. The anticipated downward correction could halt around 8200-8100 levels over the next few sessions.
Nifty is not expected to decline decisively below 7500 levels in the short term. Confirmation of bottom reversal as per daily/weekly timeframe chart could open upside target for the market.
S Ranganathan, Head of Research at LKP Securities:
The market rally today was broad based led by short covering in financials accompanied by value buying across sectors. Dormant Retail Investors also are seen coming back to our markets seeing attractive valuations on several stocks which are clear signs of maturity.
Jaspal Bindra, Executive Chairman, Centrum Group:
Through today’s announcements the Government has made provisions to ensure that families belonging to poor and lower to middle income are able to carry out their daily lives smoothly. However, we await relief measures for corporate India as well as small entrepreneurs, start ups, etc.
The move to lockdown is well acclaimed, the measures announced today are timely and appropriate. We anticipate the rest of the economic packages and hope they are designed to overcome the disruptions in the rest of society.
Market Close: Benchmark indices ended higher for the third consecutive session on March 26 as the Nifty ended the March series above 8,600 level.
The Sensex was up 1,410.99 points or 4.94% at 29946.77, and the Nifty was up 323.60 points or 3.89% at 8641.45. About 1483 shares have advanced, 766 shares declined, and 164 shares are unchanged.
IndusInd Bank, L&T, Bajaj Finance, Bajaj Auto and Hero MotoCorp were among major gainers on the Nifty, while losers were Yes Bank, GAIL, Sun Pharma, Maruti Suzuki and Adani Ports.
All the sectoral indices ended in the green. BSE Midcap and Smallcap indices rose over 3 percent each.
Santosh Meena, Senior Analyst, TradingBells: FM comes out with some announcements in terms of relief package which was majorly attributed to poor people and farmers who are facing major problems during lockdown but there was no major thing which can boost market sentiments while the market has already rallied significantly in last 2-3 days in anticipation of some kind of announcements. There are some signs that we have made a probable bottom around 7500 level as the market has discounted almost worst-case scenario but volatility will continue in tandem will global markets where the trend in coronavirus cases globally and locally will dictate the further direction of the market.
Technically 8900-9000 will act as an immediate supply zone; above this Nifty can head towards 9500-10000 zone. In the downside 8100- 8000 has become an immediate and strong support area.
Most active securities on NSE in terms of value
SEBI: Defers penalties for non-compliance of standard operating norm. Internal panel minimum meeting norms compliance deferred 3 months. Last date for companies to hold AGMs extended to September 30 from August 31
Suman Chowdhury, President – Ratings at Acuité Ratings & Research: The announcement of the Rs. 1.7 lakh crore stimulus package under Pradhan Mantri Gareeb Kalyan (PMGK) is the right step to address the needs of the vulnerable segments of the population who will be severely impacted by the ongoing lockdown and economic disruption triggered by COVID-19. The government has tried to ensure food security for the poor through the additional free supply of cereals via PDS for the next 3 months which should benefit a large section of the domestic population. One significant initiative is the decision to pay the statutory PF dues for those SMEs who have up to 100 employees with average monthly salaries less than Rs 15,000.
The additional expenditure of Rs 1.7 lakh crore will clearly intensify pressures on the fiscal deficit which can climb above 4 percent in FY21. However, repair and revival of the economy through public expenditure is a priority in today’s scenario where the slowdown in demand has been further hit. We also are of the view that over and above the current package, special regulatory dispensation for NPA recognition or loan restructuring may need to be considered to address the challenges in the financial sector arising from the likely spurt in delinquencies from all asset classes in the short term.