The Indian market bounced back smartly on April 20 after a five-day selloff to gain 1 percent, helped by auto, IT, oil & gas and pharma as well as heavyweights like HDFC and Reliance Industries.
At close, the Sensex was up 574.35 points, or 1.02 percent, at 57,037.50, and the Nifty was up 177.80 points, or 1.05 percent, at 17,136.50.
"With support from recovery in beaten-down HDFC stocks and the IT sector, the market countered yesterday’s selloff," said Vinod Nair, Head of Research at Geojit Financial Services.
Foreign investors continue to sell in large quantities but support from DIIs is helping the market partially balance the pressure, he said.
"A similar level of volatility can be expected to continue until global uncertainties settle down leading to a softening of FII selling," Nair said.
BPCL, Tata Motors, Shree Cements, UltraTech Cement and Eicher Motors were among the top Nifty gainers. Bajaj Finance, ICICI Bank, Bajaj Finserv, JSW Steel and ONGC were the top losers.
The Nifty auto index rose 2 percent and pharma, IT and FMCG indices gained a percent each, while some selling seen in metal names.
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Stocks and sectors
On the BSE, auto, healthcare, IT, oil & gas indices jumped 1-2 percent each, while selling was seen in the metal and banking names.
Broader indices underperform the main indices. The midcap index rose 0.45 percent and the smallcap index 0.36 percent.
A long build-up was seen in ACC, Ambuja Cements and BPCL, while a short build-up was seen in the L&T Infotech, Persistent Systems and Cholamandalam Investment and Finance Company.
More than 100 stocks, including Genus Power Infrastructures, Chennai Petroleum Corporation, A2Z Infra Engineering and Mangalore Refinery & Petrochemicals, touched their 52-week high on the BSE.
Among individual stocks, a volume spike of more than 100 percent was seen in Dr Reddy's Laboratories, Cummins India and ACC.
Also Read: PSU Index gains 10 percent in last 9 sessions, outperforms Sensex, Nifty
Outlook for April 21
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty witnessed a bounce back from the daily lower Bollinger Band on April 20. On the daily chart, the Nifty formed an inside bar pattern. Thus the boundaries of the pattern—16,824-17,275—become crucial support and resistance, respectively.
From the short-term perspective, 17,275-17,300 is a key hurdle zone, which encompasses multiple parameters.
As long as the index stays below this barrier, it is expected to trade with a sideways to downward bias.
On the other hand, if the bulls manage to take out this hurdle, the index will be poised for a larger bounce back.
Ajit Mishra, VP-Research, Religare Broking
The Indian market is largely following their global counterparts which are offering mixed cues. Besides, indications from the domestic front are also not very encouraging.
On the index front, 16,800 would continue to act as crucial support, while the 17,250-17,350 zone would be tough to cross.
Keeping in mind the scenario, participants shouldn’t read much into the single-day rebound and stay light.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
The Nifty showed tremendous resilience but banking kept sulking, hence the index couldn’t stay beyond the sturdy wall of 17,200.
We are back above 17,000 convincingly and hence, any positivity from the global peers or our banking space would bring back the strength in our market.
As far as levels are concerned, 17,200–17,300 remains to be a stiff hurdle and only a sustainable move beyond this would result in strong momentum in heavyweights.
On the flipside, 17,000 remain sacrosanct support. Considering the overall tentativeness, we advise traders not to trade aggressively and should continue with a stock-specific approach.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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