Benchmark indices the Sensex and the Nifty ended flat on April 16 as investors remained cautious due to a surge in COVID-19 cases that offset positive global sentiment and a normal monsoon forecast.
India's South West Monsoon for 2021 is expected to be normal at 98 percent of the long-period average, the India Meteorological Department said on April 16.
Global markets and most other Asian peers logged gains on the strong US and Chinese economic data. Positive global sentiment spilled into the Indian market as the equity barometer the Sensex rose 286 points intraday.
However, the 30-share pack remained volatile and eventually settled with a nominal gain of 28 points, or 0.06 percent, at 48,832.03. The Nifty shut shop at 14,617.85, up 36 points, or 0.25 percent.
Action was seen in the broader market as the BSE midcap and smallcap indices closed 1.17 percent and 1.05 percent higher.
For the week, the Sensex and the Nifty fell about 1.5 percent each.
Spiralling coronavirus infections continue to haunt market participants, with India now reporting more than 2 lakh fresh cases a day.
State governments have announced fresh restrictions and hopes of stronger economic recovery in FY22 appear to be at risk.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 80,710.76 | -7.25 | -0.01% |
| Nifty 50 | 24,741.00 | 6.70 | +0.03% |
| Nifty Bank | 54,114.55 | 39.10 | +0.07% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Eicher Motors | 6,580.50 | 155.50 | +2.42% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| ITC | 407.35 | -8.55 | -2.06% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 26320.60 | 325.75 | +1.25% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 34635.80 | -507.30 | -1.44% |
"Strong positive cues from the global market lent optimism to the Indian market leading to robust recovery though volatility and underperformance were noticed at the end of the day due to concerns over lockdown," Vinod Nair, Head of Research at Geojit Financial Services said.
Analysts believe the market will stabilise and witness gains when COVID-19 cases begin to decline.
"As soon as India is able to show a drop in infection rate, due to lockdown and vaccination, market performance will improve," said Nair.
Sectors and stocks
The Nifty PSU bank (down 0.59 percent), bank (down 0.42 percent), realty (down 0.45 percent), private bank (down 0.35 percent) and financial services (down 0.16 percent) ended in the red.
On the other hand, the Nifty Pharma (up 1.90 percent), media (up 1.87 percent), IT (up 1.21 percent) and auto (up 1.21 percent) logged healthy gains.
As many as 156 stocks, including Wipro, Cipla, Coforge, Dabur, Navin Fluorine International, Procter & Gamble Hygiene & Health Care, Laurus Labs and Hindalco hit their 52-week highs on BSE.
Hindustan Copper, Magma Fincorp, Adani Transmission, Tata Steel Long Products and Nureca were among more than 250 stocks to hit their upper circuits on BSE.
Technical view
The Nifty formed a Doji candle on the daily scale and a hammer pattern on the weekly scale, which indicates that declines were being bought but follow-up was missing at higher zones.
Chandan Taparia, Vice President and Derivatives Analyst, Motilal Oswal Financial Services, is of the view that the Nifty has to continue to hold above 14,500 for an up move towards 14,700 and 14,850, while on the downside, support exists at 14,350 and 14,250.
"India VIX fell by 2.33 percent from 20.89 to 20.40 levels. India VIX needs to hold below 20 zones to again attract a bullish stance in the market," said Taparia.
Rohit Singre, Senior Technical Analyst, LKP Securities, said the Nifty has taken strong resistance from 14,700, which will be an immediate hurdle for the coming week as well followed by 14,800. Supports are still placed at 14,500-14,400, he said.
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