A break above 9,350 will open doors for 9,450–9,533 and a breach of 9,100 shall see the Nifty resuming a downswing with an initial target of 8,900.
It was yet another weak session for Indian markets on May 7, as the Sensex plunged more than 200 points and the Nifty50 slipped below 9,200, wiping out most of the gains made the previous day.
The final tally on D-Street: the S&P BSE Sensex slipped 242 points to 31,443 while the Nifty50 closed 71 points lower at 9,199.
Sectorally, some rally was seen in the energy sector while profit taking was visible in power, utilities, consumer durables, telecom, and public sector stocks.
In the broader market space, the S&P BSE Midcap index fell 0.53 percent and the S&P BSE Smallcap index was down 0.14 percent.
The Nifty held on to 9,100 levels on another volatile day of trade. Bluechip financial stocks contributed most to the losses due to an anticipated increase in NPAs during this period.
Global cues and coronavirus cases will give direction to the market. Any sign of extension of lockdown could be taken negatively by the Street.
“There is no respite in the number of domestic virus infections and markets are worried about a further extension in lockdown, which could severely impact already weak corporate earnings and the economy. With increasing crude oil inventories and countries struggling to implement supply cuts, crude oil price also dropped,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“This indicates that the global economy is still not on the recovery path yet, in spite of many countries beginning to emerge from lockdowns. Indian markets are expected to remain volatile, tracking domestic news regarding the spread of infections.”
Top Nifty gainers included M&M, Adani Ports, JSW Steel, IndusInd Bank, and Bharti Infratel.
Top Nifty losers included NTPC, BPCL, ONGC, Kotak Bank, and GAIL India.
Stocks & Sectors
Sectorally, the S&P BSE Energy index rose 1.8 percent while selling pressure was seen in the S&P BSE Power Index, which fell 2.4 percent. The S&P BSE Utilities was down 2.2 percent and the consumer durables index also fell 2.24 percent.
A volume spike of more than 100 percent was seen in stocks like Shree Cements, HCL Tech, Berger Paints, YES Bank and HUL.
Long Buildup was seen in stocks like Escorts, M&M, Jindal Steel, and IndusInd Bank.
Short Buildup was seen in stocks like HUL, Asian Paints, Tata Chemicals, UBL, and Apollo Hospitals.
Stocks that gave a bearish signal based on MACD include Alkem Laboratories, Balmer Lawrie, Bombay Dyeing, HPCL, DHFL and Sobha, according to data collated from StockEdge.
More than 130 stocks hit a 52-week low on the BSE. These include AU Small Finance, Birla Corp, SIS, Sunteck Realty,and Mahindra Holidays.
Stocks in news
Yes Bank share price gained nearly 7 percent even though the bank reported a net loss of Rs 3,668 crore in the quarter ended March 2020.
HCL Technologies ended 1.5 percent lower despite the company reporting a 3.8 percent QoQ jump in profit at Rs 3,154 crore.
Persistent Systems rose 5 percent after the company expanded partnership with Dassault Systèmes to strengthen digital transformation capabilities in Europe.
Solara Active Pharma declined 12 percent after the company reported 32.3 percent fall in its Q4 consolidated net profit at Rs 17.8 crore against Rs 26.3 crore, YoY.
Salasar Techno Engineering share price rose nearly 4 percent after the company got an order for 220 and 66 KV transmission lines in Yamuna Nagar and Ambala from the Haryana Vidyut Prasaran Nigam Limited.
Astec Life was up for the third straight day on Q4 earnings
OMCs slipped for the second day after government left fuel price unchanged after the excise hike.
The Nifty formed a bearish candle on the daily charts with an indecisive pattern.
For a while, the index may continue to consolidate in the 9,350–9,100 range, unless it registers a breakout in either direction.
A break above 9,350 will open doors for 9,450–9,533 levels, similarly a breach of 9,100 shall resume the downswing with an initial target of 8,900.
On an intraday basis, if the Nifty manages to sustain above 9,270, then it should be considered an initial sign of strength, say experts.Traders are advised to wait for a minor breakout in either direction before initiating trading bets, they say.