The bears tightened their grip on Dalal Street on Wednesday as Indian equities were hammered amid rising coronavirus cases. An adverse judgment from the Supreme Court on the AGR issue also didn’t help market sentiment.
Banks and telecom were dealt the biggest blows with Vodafone Idea crashing 35 per cent and IndusInd Bank slumping 24 per cent.
BSE Sensex shut shop at 28,869, down 1,709 points against the previous close of 30,579.09. Likewise, the 50-share Nifty settled 498 points down at 8,468.80.
Arun Kumar, Market Strategist, Reliance Securities said: “Nifty hit a new 52-week low by surpassing last Friday’s low of 8,556. Though the index is highly oversold on the near term basis, the oscillators on the higher time frames are displaying incremental pain. The next significant support falls around it’s historical support zone of 7,890-8,000.”
Here’s what indicators are suggesting for the stock market action on Thursday:
US stocks slump as corporate damage grows
Wall Street’s main indexes sank again, as growing signs of coronavirus damage to corporate America overshadowed a burst of optimism about sweeping official moves to protect the economy, Reuters reported. Boeing took another big hit, falling 16.1 per cent as the planemaker called for a $60 billion bailout for aerospace manufacturers facing the pain of an extended collapse in global travel. At 8.30 PM IST, Dow Jones was down 5.53 per cent or 1,174.49 down at 20,062.89. Nasdaq and S&P 500 indices were up to 4 per cent in the red.
European shares sink again
European shares tumbled as fears over the relentless global spread of the coronavirus overshadowed sweeping stimulus measures to support businesses and contain the economic damage from the pandemic. At 8.30 PM IST, The pan-European STOXX index was down 3.81 per cent, while key indices from Germany, France and the UK were up to 4 per cent in the red.
WTI oil falls to $25 for first time since 2002
Oil prices fell for a third session on Wednesday, with US crude futures tumbling to an 18-year low and Brent hitting a more than 16-year low as travel and social lockdowns to counter the coronavirus raised the prospect of the steepest ever annual fall in oil demand. At 8.30 PM (IST) WTI was trading at $23.81 a barrel, down 11.65 per cent or $3.14.
Tech View: As Nifty breaches 8,555, analysts see more pain
Nifty tumbled over 5 per cent to form a new swing low. The index breached its recent low of 8,555, which analysts had thought would be a short-term bottom for the market. “More pain is in the offing,” they warned. The index has been trading far below its key moving averages and the 14-day RSI at 14 suggests the index is in deep oversold territory. Analysts do not rule out the index falling below the 8,000 level in the short term.
F&O: Nifty Bank in the ‘make or break’ zone
Bank Nifty is hovering around the ‘make or break’ levels in the 20,500 – 20,600 zone on the monthly chart, which is the confluence zone of the previous swing high and the 61.80 per cent retracement level of its previous rally from 13,407 to 32,613 levels. The RSI oscillator has seen a breakdown on the monthly scale (confirmation will come on a monthly closing basis). If Bank Nifty closes below 20,500 level, then we may see an extension of the ongoing fall towards the 18,000 – 17,500 zone. On the upside, resistance is continuously shifting lower and now the immediate hurdles are at 22,500 and 23,500 levels for the banking index.
YES Bank comes out of moratorium
After 13 days of hardship for customers, YES Bank said it has resumed all banking services as the moratorium imposed on the lender was lifted on Wednesday evening. Besides, the lender would extend banking time for three days starting Thursday. Shares of YES Bank jumped 50 per cent in early trade, but pared the gains and closed only 3.67 per cent higher at Rs 60.80.
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Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Wednesday showed bullish trade setup on the counters of Bharat Electronics, CG Power, Gujarat Apollo and SPL Industries. The MACD is known for signalling trend reversals in traded securities or indices. It is the difference between the 26-day and 12-day exponential moving averages. A nine-day exponential moving average, called the signal line, is plotted on top of the MACD to reflect ‘buy’ or ‘sell’ opportunities. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Eicher Motors, Arvind SmartSpaces, Panacea Biotec and Cigniti Technologies. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
IndusInd Bank (Numbers of shares traded: 3670.27 crore), HDFC Bank (2803.13 crore), YES Bank (2494.81 crore), ICICI Bank (2182.17 crore), SBI (2123.53 crore), RIL (2029.06 crore), Bajaj Finance (1732.05 crore), Axis Bank (1655.37 crore), HDFC (1534.78 crore) and Kotak Mahindra Bank (1356.71 crore) were among the most active stocks on Dalal Street on Thursday in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Idea Cellular (Shares traded: 214.75 crore), YES Bank (36.42 crore), ONGC (17.86 crore), SBI (10.14 crore), NTPC (8.87 crore), IndusInd Bank (7.49 crore), Tata Motors (7.01 crore), Power Grid (6.74 crore), IDFC First Bank Ltd. (6.26 crore) and ICICI Bank (6.12 crore) were among the most traded stocks in the session.
Stocks showing buyers’ interest
Ruchi Soya Inds, Geekay Wires and Bafna Pharma witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Wednesday signalling bullish sentiment.