Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
As expected, the same thing happened in the market today. The formation of a Bullish Harami served as a powerful reversal formation for the market. The Nifty crossed the 14750 levels and moved very close to 14900. Today, all sectors except Bank Nifty and Auto performed well. Tomorrow we would see some increase in bank stocks, mainly because the Bank Nifty closed above the level of 33700. Bank Nifty can go up to 34500/34700. If the Bank Nifty performs, the Nifty could move closer to 14900 and 15050 levels.
Ajit Mishra, VP - Research, Religare Broking:
Markets started the week on a robust note and gained nearly two and a half percent. The benchmark opened gap-up led by supportive global cues and continue to inch higher as the day progressed, thanks to healthy buying in sectors such as IT, FMCG, metals and healthcare. Consequently, the Nifty ended near day’s high at 14,845 levels, up by 2.3%. The broader markets too ended in positive with gains in the range of 1-1.3%.
It’s surprising the way the benchmark is showing resilience amid mixed cues. Going ahead, upcoming data viz. Core Sector and auto sales along with global cues will remain on the participants’ radar. Needless to say, the recent deterioration of the COVID situation in India has dented sentiment and will be closely watched by the participants in the coming sessions too. We thus reiterate our cautious stance until we see some decisiveness in the trend.
CapitalVia Global Research:
Indian equity benchmarks began the day with an optimistic start, owing to gains in global peers. The benchmarks continued to trade in high spirits in the morning session. In the late afternoon session, the indexes extended their gains and maintained their momentum. We expect 14900 to act as resistance but if the market breaks the level of 14900, we can expect it to continue till the levels of 15300.
Meanwhile, a meeting with Union Minister of Commerce and Industry, Piyush Goyal, US Trade Representative, Katherine Tai said that India and the US will explore ways to broaden trade ties and cooperate on pending bilateral issues which if resolved can have a positive impact on the market. The RBI is slated to announce its first bi-monthly monetary policy of 2021-22 fiscal on April 7, 2021, after a three-day meeting of the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS:
Indian markets have extended their recovery for a second session, boosted by strength across the board. Global cues have been supportive of the rally since Friday, with both US and European markets advancing to life-time highs. Contributing the most to today's advance were stocks from the metal, IT, and pharma space. Meanwhile, the broader markets have under-performed the large-caps so far, with Midcap and Smallcap index up just a little over 0.7%.
Despite the recovery over the past two sessions, Indian markets have been under-performing their global peers for the past few days. For the short-term, in spite of the generally supportive global cues, we could witness bouts of volatility in the domestic markets. Strengthening dollar and rising US yields, in particular, remain the key forces to watch out for as they could act as headwinds to the short-term recovery. Hence, one needs to trade cautiously and take a sector-specific stance.
Technically, last week's high of 14878 is the immediate hurdle for Nifty. If the index surpasses this level, the recovery could extend towards 14985-15060. Meanwhile, today's low of 14617 now becomes the immediate support to watch out for, break below which is likely to resume the downside pressure on the index.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty has successfully closed past its resistance zone of 14700-14800. However, I would be more comfortable if we can get past 14950 on a closing basis. That would trigger a rally up to levels closer to 15300. Until we do not get past 14950, there is always a chance we take a U turn from these levels and head southwards to 14400. Extreme caution is advised at the current levels.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities:
The Nifty-50 has again gone above the 50 DMA led by gains in high quality stocks. Except for today’s depreciation, the INR has remained quite steady even though the Dollar Index rose. Also when the US 10 Year bond yields has spiked sharply, India’s 10 Year Bond Yield has remained quite stable. These two factors could act in India’s favour and help Indian equities outperform its peers in the emerging markets.
Recent correction could be due to rising Covid cases and year end phenomenon wherein retail and HNI investors would have avoided taking any fresh positions. The start of new settlement for FY22 and forthcoming Q4 earnings seasons could be the reasons for fresh investor interest in stocks. US markets, especially the Dow Jones and S&P 500 are showing firm uptrend due to the ongoing stimulus and faster vaccination drive which could also be one of the reasons for our markets to inch upwards.
S Ranganathan, Head of Research at LKP Securities:
Markets opened firm on strong global cues with Joe Biden slated to announce his USD 3 trillion infra package. Investors shrugged off the rising corona virus cases in few states as the GOI prepares for a vaccine rollout on a larger scale. Steel & IT stocks led the bull charge while FMCG stocks joined the party in late afternoon trade as the Sensex scaled past 50k.
Rupee Close:
Indian rupee extended the early losses andended near the day'slow level at 73.38per dollar, amid buying seen in the domestic equity market with benchmark indices rose over 2 percent each.
It opened lower at 72.81 per dollar against previous close of 72.67 and traded in the range of 72.76-73.46.
Market Close:
Benchmark indices ended higher for the second day in a row with buying seen in the IT, FMCG, metal and Pharma stocks.
At close, the Sensex was up 1,128.08 points or 2.30% at 50,136.58, and the Nifty was up 337.80 points or 2.33% at 14,845.10. About 1529 shares have advanced, 1386 shares declined, and 197 shares are unchanged.
UPL, JSW Steel, HDFC Bank, Tata Steel and HCL Technologies were among major gainers on the Nifty, while losers were Axis Bank, M&M, Hindalco Industries, Bharti Airtel and SBI Life Insurance.
On the sectoral front, Nifty IT, FMCG, metal and Pharma indices rose 2-3 percent. BSE Midcap and Smallcap indices added a percent each.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
After a few days of the lackluster movement, the market witnessed a positive trend in today's market activity. 14,900 (Nifty50 Index level) level is expected to act as resistance. Breakout of the same we may witness the market rally till 15,300. It's going to be crucial for the short-term market scenario to breakout above the 14,900 level.
The market observed that the momentum indicators like RSI and MACD support the upside move and indicate that a fresh breakout's potential is exceptionally high.
BHEL bags major order for a sulphur recovery unit from IOCL:
Bharat Heavy Electricals (BHEL) has bagged a major order for a Sulphur Recovery Unit from IOCL. With this order, BHEL has made an entry into the downstream oil & gas process package business, company said in its press release.
Bharat Heavy Electricals was quoting at Rs 48.90, up Rs 0.20, or 0.41 percent on the BSE.
Anu V Pai, Commodity Research Analyst:
Rising Covid-19 cases, fall in crude oil prices and concerns over the US-China trade relations dampened the sentiments in the natural rubber market last week. The commodity in the domestic as well as in the overseas market edged down, with RSS4 grade rubber in the Indian markets retreating from more than seven year highs, and posted losses for the week.
The lingering uncertainty over demand due to increasing Covid-19 cases and movement in crude oil prices may continue to influence market sentiments in the week ahead as well. However, ongoing lean production phase in some of the key natural rubber producing countries may lend support.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Sharp decline in FII selling coupled with large buying by DIIs can support the market and even take it higher. But there are many concerns like surge in Covid cases, particularly in economically crucial Maharashtra, appreciation in US 10- year bond yield above 1.7% and the dollar index moving up to 92.8 levels.
DIIs and retail investors are likely to be buyers in banking, IT, cement and metal stocks which look attractive at present levels. Year-end considerations also are likely to lead to further DII buying.
ICRA upgrades long-term rating of Tasty Bite Eatables:
Rating Committee of ICRA, after due consideration, has upgraded the long-term rating to ICRAA+ from ICRA A, and has reaffirmed the short-term rating at ICRA A1 for the Rs 77 crore fund based and non-fund based facilities. Outlook on the long-term rating is stable.
Rupee at day's low at 73.29 per dolla:
Indian rupee has extended the early losses and trading at day's low level at 73.29 per dollar, amid buying seen in the domestic equity market.It opened lower at 72.81 per dollar against previous close of 72.67.
Oil gains as focus switches to OPEC+ extending output cuts
Oil prices rose on Tuesday as shipping traffic resumed through the Suez Canal after days on hold and focus turned to an OPEC+ meeting this week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.
Nifty IT jumps almost 4%
Most IT stocks traded with healthy gains in intraday trade on March 30, reaping the gains of the rupee's weakness against the US dollar.
The rupee opened 14 paise lower at 72.81 per dollar against the previous close of 72.67 and breached the 73 mark soon. At 1420 hours, the rupee quoted 73.24 per dollar.
At the current level, the rupee is trading near its three-week low as the dollar rose against its global peers amid rising bond yields.
IT stocks gain on the dollar's strength against the rupee as a major portion of their revenue comes in the dollar.
Nifty IT index jumped almost 4 percent in intraday trade with stocks such as Coforge, Mindtree, Mphasis, Infosys, HCL Tech and TCS gaining up to 6 percent.
At 1435 hours, the Nifty IT index was 3.39 percent up at 26,246 with only shares of Info Edge (Naukri) in the red.
Sensex reclaims 50k mark, still 2,344 points below its all-time high of 52,516
Sensex has touched an intraday high of 50,172 in today's session so far and it is 2,344 points below its all-time high of 52,516, hit on February 16, 2021.
Market analysts expect some volatility in days to come but point out that the long-term outlook of the market remains positive.
"The global equity markets are unlikely to see any significant fall in the short-term as economic conditions are improving and also aggressive vaccination plan is being implemented," said G. Chokkalingam, Founder and MD of Equinomics Research & Advisory Private Limited.
On the front of COVID-19, while the rise in cases is a cause of worry, it is unlikely to impact the economic output substantially like 2020 so its adverse impact on the economy could be at a manageable level, Chokkalingam pointed out.
Sensex is up with gains of over 1,000 points. Only two stocks- Bharti Airtel & Mahindra & Mahindra - are in the red in the 30-share pack.
European Markets trade higher:
Intellect bags a large deal from Concentra Bank:
Concentra Bank has selected Intellect’s cloud-native, digital banking platform to power its exciting new digital banking strategy.
Intellect offers, which are designed and packaged into an API-first, composable, cloud-native digital banking platform that will be deployed on Microsoft Azure.
Intellect Design Arena was quoting at Rs 677.15, up Rs 53.55, or 8.59 percent on the BSE.
Nifty Pharma Index rose 2 percent led by the Torrent Pharma, Cipla, Divis Lab
ICICI Direct on Minda Corporation:
FY21E-23E PAT CAGR at Minda Corporation is seen at ~ 62% (albeit on a low base). Broadbased positivity across served segments domestically, new order wins along with structural margin tailwinds help us maintain buy on Minda Corporation.
We value it at Rs 120, 15x P/E FY23E EPS (previous target price Rs 105) and remain enthused by its long term vision to clock ~12% margins and ~20%+ RoIC.
Tata Power to develop 60 MW solar project for Gujarat Urja Vikas Nigam:
Tata Power has received a Letter of Award from Gujarat Urja Vikas Nigam Limited (GUVNL) to develop a 60 MW solar project in the state of Gujarat.
The energy will be supplied to GUVNL under a Power Purchase Agreement (PPA), valid for a period of 25 years from scheduled commercial operation date.
Tata Power Company was quoting at Rs 104.70, up Rs 1.25, or 1.21 percent on the BSE.
Rupee extends losses, trade at day's low at 73.14 per dollar
Indian rupee has extended the early losses and trading at day's low level at 73.14 per dollar, amid buying seen in the domestic equity market.It opened lower at 72.81 per dollar against previous close of 72.67.
Dilip Buildcon receives LoA from NHAI for a project in Karnataka:
Dilip Buildcon has received a letter of acceptance (LoA) from the National Highways Authority of India (NHAI) for four laning of Sannur to Bikarnakette section of NH-169 under Bharatmala Pariyojana on hybrid annuity basis in the state of Karnataka. The project cost is Rs 1137 crore and to be completed in 24 months.
Dilip Buildcon was quoting at Rs 582.55, up Rs 23.20, or 4.15 percent on the BSE.
Goldiam International receives export orders
The company has received confirmed export orders worth Rs 80 crore from its international clients for manufacturing of diamond studded designed gold jewellery. The aforesaid order will be delivered within coming 3 months, company said in the release.
Goldiam International was quoting at Rs 339.00, up Rs 6.25, or 1.88 percent on the BSE.
Indices near day's high led by metal, pharma stocks
Benchmark indices are trading near the day's high level with Nifty above 14,750.
At 11:53 hrs IST, the Sensex is up 883.12 points or 1.80% at 49891.62, and the Nifty up 266.20 points or 1.83% at 14773.50. About 1517 shares have advanced, 1067 shares declined, and 145 shares are unchanged.
CLSA on steel sector
The recent rally has more steam and see further upside in the steel stocks as risk-reward remains favourable, said research house CLSA.
It maintained buy on Tata Steel and raised target to Rs 950 from Rs 860, while upgraded JSW Steel to outperform from sell and raised the target to Rs 490 from Rs 350.
The current estimates imply Rs 10,000-12,000/t correction in steel prices versus spot, however, the sharp correction is unlikely unless demand drops sharply, CLSA said.
It raised the estimates for Indian steel companies mainly on better realisations, research house added, reported CNBC-TV18.
Rupee Opens:
Indian rupee openedlowerat 72.81 per dollar on Tuesday against previous close of 72.67, amid buying seen in the domestic equity market.
Sectoral Performance
All Sectoral indices traded in the green with Nifty Bank, IT, Pharma, Metal and FMCGrising 1.5-3 percent.
Currency Outlook
"The USD/INR trading at 72.78 and Friday it closed at 72.65, US dollar to appreciate more against most Developed Market and Emerging Market currencies in the coming days due to rise in US Treasury yields further. In the coming months, a higher trade deficit and slower export growth have the potential to sway the rupee's upward trend that began in January 2021,"KshitijPurohit, Product Manager,Currency& Commodities atCapitalViaGlobal Research said.
"Technically, USD/INR moderately strengthened after breaking through the 72.30-50 range on Wednesday, touching a peak of 72.69 and currently trading near the 72.50 mark. Global fund flows are expected to start to reverse in the second week of April 2021, putting pressure on the currency pair to improve and challenge the 73.00 mark even earlier. The 21-SMA level is acting as a resistance level on the hourly chart, if prices give closing above this level and sustain, we may witness bullish momentum in the upcoming sessions. We are expecting prices to test support levels in the range of 72.80-72.70," he added.
Auto Sales Expectations for March Month
"Our interaction with leading channel partners indicate demand sentiments across segments (ex-2W) remains unaffected, despite second concurrent lockdown in certain parts. For PV, we expect healthy demand sentiments as retail volumes are expected to grow 16-18 percentYoYled by strong demand from North, Central and South regions. However short supply both in CVs andPVsare impacting retails to an extent 20-25 percent,"PrabhudasLilladhersaid.
"2Ws demand continues to remain weak leading to further inventory increase across 2W OEMs to 5-7 weeks in March 2021 (versus4-6 weeks in February). Tractor demand was steady for the month with inventory at sub-normalized level of around4 weeks. We do not see any impact of recent price increase announcement inPVswhile for 2Ws it will further dent buying sentiments in price sensitive sub segments," the brokerage added.
Nifty Performance
RBI Policy Expectations
"Markets appear skeptical about whether the RBI can steer a course to policy normalisation without a wrong turn. We believe it can and the MPC meeting on 7 April offers a chance to close the communication gap around how that process may unfold,"RahulBajoria, Chief India Economist at Barclays India said.
"We believe the RBI can maintain its monetary accommodation for a while longer in order to enable the recovery to become entrenched. Recovering output lost to the pandemic could take longer than anticipated, and policy makers will be best served by letting the economy run ‘hot’ for a few quarters, in our view," he added.
"We believe the RBI will likely adopt a very gradual process of normalization, augmented by moral suasion. Communicating an eventual exit from extraordinary accommodation will be a challenging exercise, with multiple stages. CRR normalisation has already begun, and it will be followed up with removal of enhanced forward guidance, increase in reverse repo rates to a ‘normal’ policy rate corridor of +/-25bp, followed by an eventual rate hike in Q2 2022 at the earliest, in our view," he said.
Nifty Bank index rose nearly 2 percent supported by the IDFC First Bank, HDFC Bank, Bank of Baroda
Adani Transmission share price hits 52-week high
Adani Transmission share price touched a 52-week high of Rs 924.40, rising 6 percent on March 30 after the company signed definitive agreements with Essel Infraprojects for the acquisition of Warora-Kurnool Transmission (WKTL).
As per the agreement, WKTL will develop, operate, and maintain transmission lines aggregating to around 1,750 ckt km, the company said in the release.
Indices near day's high; metal stocks in focus:
Benchmark indices are trading at day's high level supported by the metal, bank, FMCG and pharma names.
At 10:19 IST, the Sensex was up 810.92 points or 1.65% at 49,819.42, and the Nifty was up 247.60 points or 1.71% at 14,754.90. About 1628 shares have advanced, 736 shares declined, and 128 shares are unchanged.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments:
The Nifty is currently trading around a resistance patch which is 14700-14800. We need to get past these levels on a closing basis so that we can summarize that the short-term downtrend is over for the time being. If we can keep above this level, we could be headed higher to 15200-15300. If we collapse from the current levels and break 14500 on a closing basis, there is every possibility we go down to retest the recent lows.
Nazara Technologies debuts with 81% premium
Rakesh Jhunjhunwala-backed mobile gaming company Nazara Technologies had a stellar debut as the share price opened with a massive 80.74 percent premium on March 30.
The stock started off the first trade on the National Stock Exchange at Rs 1,990, rising Rs 889 compared to the issue price of Rs 1,101. On the BSE, it began the trade with a 79.02 percent premium at Rs 1,971.
Gold Updates
: Gold prices slipped on Tuesday, around a more than two-week low hit in the previous session, pressured by a stronger U.S. dollar and higher Treasury yields on optimism around a quick economic recovery as vaccinations gain momentum.
Cochin Shipyard delivers vessel to Andaman and Nicobar Administration
Cochin Shipyard Limited delivered the first 500 Pax passengers cum 150 Tons Cargo vessel named “Sindhu” to Andaman and Nicobar Administration on Saturday (27/3/2021).
Cochin Shipyard was quoting at Rs 356.30, up Rs 1.75, or 0.49 percent on the BSE.
Nifty Metal index rose 2 percent led by the SAIL, JSW Steel, Tata Steel
Petrol, diesel prices slashed:
Retail fuel prices were slashed on March 30 for the first time in five days following a decline in international fuel prices. The price of petrol was cut by 22 paise and that of diesel by 22 paise in New Delhi. Prices were earlier slashed on March 25 after remaining unchanged for 24 days.
Gainers and Losers on the BSE Sensex:
Market Opens:
Indian indices opened higher on March 30 with Nifty around 14650 amid mixed global cues.
At 09:16 IST, the Sensex was up 398.91 points or 0.81% at 49407.41, and the Nifty was up 133.60 points or 0.92% at 14640.90. About 1042 shares have advanced, 261 shares declined, and 77 shares are unchanged.
