The Indian share market continues trading in the red on April 21 following its global peers after historic overnight plunge in US crude oil that amplified the blow to the world economy from the virus-led lockdowns.
Sensex is down 982.73 points or 3.11% at 30665.27, and the Nifty down 278.95 points or 3.01% at 8982.90.
"On the downside, we believe immediate support is placed at 8800 as it is the confluence of a) 38.2 percent retracement of ongoing pullback (9390 – 8055), placed at 8880 coincided with b) last week’s low is placed at 8822," ICICIdirect said in a report.
All sectoral indices barring the pharma index are trading in the red.
Nifty Auto tanked over 5 percent dragged by Motherson Sumi Systems which cracked 15 percent followed by Ashok Leyland, Bharat Forge, Eicher Motors, Tata Motors and Mahindra & Mahindra.
"Pharma sector is likely to do well. Torrent Pharma is one of the top picks in the model portfolio," said Vinod Nair, Head of Research at Geojit Financial Services.
Nifty Pharma jumped almost 3 percent led by Aurobindo Pharma which surged 20 percent after the US Food and Drug Administration has determined the inspection classification of the company's general injectable formulation facility at Pashamylaram in Hyderabad as Voluntary Action Indicated (VAI), the company said in a filing to the exchanges.
"US business is being driven by new approvals from a large pending pipeline coupled with a diversified product portfolio. With Sandoz deal called off, debt concerns have receded and earnings growth can sustain in high single digit over FY20-22. Key reason for our optimism on the stock is the beaten down valuation at ~9x FY22 PE which is at a large discount to peers even adjusting for the lack of domestic business," said Bhavesh Gandhi, Lead Analyst, Institutional Equities, YES Securities.
The other gainers included Divis Labs, Dr Reddy's Labs, Torrent Pharma and Sun Pharma which added 2-4 percent each.
Among the above names, Divis Labs, Dr Reddy's Labs and Sun Pharma hit new 52-week high on the BSE.
Technical Analyst Ashwani Gujral of ashwanigujral.com has a buy call on Sun Pharma with a stop loss of Rs 465, target at Rs 490.
The metal index tumbles 5 percent dragged by Tata Steel, MOIL, Hindalco Industries, JSW Steel, Jindal Steel & Power, Hindustan Copper and SAIL.
Among the banking names, IndusInd Bank cracked 12 percent followed by Bandhan Bank, ICICI Bank, PNB, RBL Bank and State Bank of India.
437 stocks hit lower circuit on BSE including IDFC, Welspun India, Quess Corp, Edelweiss Financial, PNC Infratech and Indiabulls Ventures
137 stocks hit 52-week low including ABB Power, AB Fashion and GE Power among others.
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