Market Volatility Increases Tracking Global Cues

IT, Pharma, Metal Stocks Push Markets to New Highs

Our Analysis

The indecisive Indian share market which was in the range bound from last 5 week has been spooked by the tweet of President Donald Trump threatening to more than double the existing tariffs on China. Indeed deteriorated the sentiment of investors all over the globe, As a Result, the Bears got active in D-street and dropped the market below its important support levels. Among all the heavyweight Reliance industries was the one with the sharp sell-off and also one of the reasons to sudden fall in Nifty.

Apart from the worsening trade war scenario, Many other news flows contributed to the swift and furious fall. The FII, in contrast to the mammoth infusion in the month of March and April this year, changed their course and were the net seller. Also, the march result of FMCG firm shows stress on consumption on the rural front, with the most company reporting a subdued number and the concern of slowdown likely to remain in the coming quarters for FMCG.

Going ahead, All the attention will be on the trade talks between US and China, further, the trend of the market is likely to be dictated by the domestic events like Q4FY19 earning session and macro data (IIP, CPI, WPI). Moreover, the market participant will also keenly watch the progress of the general election. We expect the market to remain volatile considering the overall event. The Indices is likely to give a short term pullback but the overall trend remains in the downside and will remain so until the election results.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, After the Gap down opening the index throughout the session witnessed the selling pressure. The consumer durable was the most active space in a days trade. slowdown and the decline in the volume Growth was the key concern for which space remained too much active. The Sensex closed at 38600.34, while Nifty dropped by 114 points closing at 11598.30.

2) On Tuesday, Indian share market had a Gap up opening, however, the closing results were the same Nifty was down by 110.35 points at 11497.90, Sensex closed at 38276.63. The D-street in the last session has witnessed a sharp decline led by the Reliance and the Banking stock namely ICICIbank which were down more than 3 percent. With-the-sharp-fall, the indices have breached the important support levels.

3) On Wednesday, Indian share market closed on the day's low, The heavyweight Reliance which was down 3.41 percent at the closing dragged the Indices lower with Nifty closing at 11359.45 and Sensex declined by 487 points finished at 37789.13 Mark.

4) On Thursday, Sensex was down by 230.22 at 37558.91 While Nifty closed at 11301.80. On the sectoral front, Media, IT & Reality were the top gainer, On the other hand, Energy, Metal & Infra were among the top losers.

5) On Friday, Indian equity benchmarks opened higher after falling for seven consecutive trading sessions.

Broader Index & Global Market:

On the global front, The Indices witnessed the turmoil after president Trump tweeted regarding the trade war escalation, Reacting to the news the Asian market plunged more than 3 percent, the US market also faced high volatility.

In the broader market, The Mid & Small Cap had traded mixed in this week. However, they had shown strength as compared to benchmark indices.With the result oriented action continued to take place.

Movers & Shakers

Shares of Tata Chemical surged nearly 7 percent. the company after several lackluster quarters, it finally churned out a healthy set of earnings, signaling improvement across segments in the March quarter.

Shares of Reliance Industries dropped more than 9 percent in a week after After the brokerage firm Morgan Stanley downgraded the company to equal-weight, maintaining the target at Rs 1,349 per share.

Key Market Drivers

  • President Donald Trump dramatically increased pressure on China to reach a trade deal, saying he would hike U.S. tariffs on Chinese goods this week.
  • The National Highway Authority of India (NHAI) is looking to rope in equity partners for funding highway projects in a bid to raise more funds and get around the problem of muted private investment.
  • India April Nikkei services PMI at 51.10 Vs 52.0 in March.
  • RBI is likely to conduct at least one more swap of rupees for dollars after the general election.
  • 57% down in India's oil imports from Iran in April.
  • Foreign portfolio investors can invest in municipal bonds.
  • The Reserve Bank had warned on the rising risks to fiscal consolidation of the states as the finances are saddled with farm loan waivers, income support schemes and the Uday bonds for their power distribution companies.

Event Watch

International:

  • China Industrial Prod YoY
  • The US-China trade talk
  • Crude Movement

Domestic:

  • India Industrial Prod YoY
  • India CPI YoY
  • India Wholesale Prices YoY
  • India Trade Balance
  • Q4FY2019 Earning
  • INR Price

Stocks To Watch

DCB Bank & RBL Bank On Upside while M&M & Graphite on Downside.

Share Market News 09-May-2019

Sensex falls for 7th day to hit a 2-month low, RIL down 3%

Indian Share markets fell for the seventh straight day, dragged by Reliance industries which have been under selling pressure from the last couple of trading session. In the opening bell, the Sensex was down 150.24 points at 37638.89, While Nifty was trading at 11319.80 . On sectoral level, except metal, all other sectors were trading lower. The US-China trade escalation remains in investor radar as Trump stated that China had broken the trade deal with Washington and would face stiff tariffs if no agreement is reached.

In the afternoon session, The Indian share market had recovered from a day low with Nifty trading at 11,337 and Sensex at 37,713.31. The ICICI bank had helped to do so. Reliance, HDFC Twins had continued to trade in selling pressure. Among sector Media, PSU Bank, Reality & IT was trading in the green, On the flip side, Energy, Metal & Pharma were among the top losers. In the broader market, the Mid & Small- Cap were trading strong as compared to the benchmark and showing positive gains.

Indian benchmark indices from last three consecutive days were dragged lower by reliance industries, the sentiment has been dented by the escalation of the US-China trade deal with nifty closing at 11301.80 and Sensex down by 230.22 at 37558.91. On the sectoral front, Media, IT & Reality were the top gainer, On the other hand, Energy, Metal & Infra were among the top losers. In the broader market, Mid-cap declined by 0.09 percent and Small-cap closed lower by 0.47 percent. In today's trade, The benchmark indices have witnessed a strong buying interest from lower levels indicating some pullback in the coming days, however, the major trend remains in the downside. the macro data (IIP) is scheduled tomorrow which would be on the investors radar.

Top Gainers

ZEEL by 8.40% to Rs 359.45. ,YESBANK by 6.47% to Rs 171.15,BAJAJFINSV by 2.02% to Rs 7,494.20, BAJFINANCE by 1.63% to Rs 2,969.00, HEROMOTOCO by 1.61% to Rs 2,540.00.

Top Losers

RELIANCE By -3.56% to Rs 1,253.15 ,BPCL by -3.19% to Rs 367.70, COALINDIA by -2.65% to Rs 242.50, ASIANPAINT by -2.58 % to Rs 1,350.00., KOTAKBANK by -2.29% to Rs. 1,370.05.

Analysis Of Top Gainer And Loser

ZEEL is the top gainer in today's market session After the Group was quoted as saying: The stake sale process of Zee Entertainment Enterprises Ltd undertaken by Essel Group, is in steady progress and at an advanced stage."

RELIANCE is the top loser in today's market, after brokerage firm Morgan Stanley downgraded the company to equal-weight, maintaining the target at Rs 1,349 per share.

Key Market News

  • Foreign portfolio investors can invest in municipal bonds.
  • The Reserve Bank has warned on the rising risks to fiscal consolidation of the states as the finances are saddled with farm loan waivers, income support schemes and the Uday bonds for their power distribution companies.
  • Foreign portfolio investors (FPIs) sold Rs 701.50 crore worth of domestic stocks on Wednesday, DIIs were net buyers to the tune of Rs 232.95 crore.

Stocks To Watch

VIPIND is on the upside while ASIANPAINT is on the downside.

VIPIND is currently quoting at Rs.432.00 up by Rs 11.20 or 2.66% from its previous closing of Rs.420.80 on the NSE. The NSE stock has touched a 52 week high of Rs.647.00 on 28-AUG-2018 & a 52 week low of Rs.365.10 on 21-MAY-2018. The Stock after the recent correction has witnessed good buying from a lower level in todays trade.

ASIANPAINT is currently quoting at Rs.1,350.00 down by Rs.-35.70 or -2.58% from its previous closing of Rs.1,385.70 on the NSE. The NSE stock has touched a 52 week high of Rs 1,529.85 on 03-APR-2019 & a 52 week low of Rs 1,118.00 on 23-OCT-2018. The stock after posting its Q4 results slide in the negative territory and likely to remain in a downtrend in the coming days.

Share Market News 08-May-2019

Heavy selling drags Sensex 487 pts, Nifty ends around 11,350; ZEEL tumbles 10%

Indian share markets fell in opening bell, as the fears of an escalation in the trade war between the US and China continued to reverberate through global markets. Sensex opened at 38037.41, While Nifty was trading at 11432.70. The broad-based selling was visible in metal, FMCG, auto, bank, energy, pharma, and IT sectors.

In the afternoon session, the Indian share market was trading at day's low, The Heavyweight Reliance which was down by 2.22 percent dragged the Nifty towards 11,400 level, The Sensex declined by 248 points trading at 38028.25. There was a complete blood bath as all the sector were trading in red with most pain seen in Media, reality, and Pharma. In the broader market, The Mid & Small -Cap were down more than 0.80 percent.

Indian share market closed on the day's low, The heavyweight Reliance which was down 3.41 percent at the closing dragged the Indices lower with Nifty closing at 11359.45 and Sensex declined by 487 points finished at 37789.13 Mark. Besides that foreign institutional investors also turned the net sellers over the past few trading sessions in Indian markets indicating the negative outlook moving ahead. On the sectoral front, All sector had closed in red with Media, Reality & Bank Nifty were the top loser. The biggest causality for the day was the ZEEL which was down more than 10 percent. In the broader market, The Mid-cap was down by 0.98 percent and small-cap was closed lower by 1.20 percent.

Top Gainers

HINDALCO by 1.15% to Rs 202.75. ,UPL by 1.14% to Rs 962.00,TITAN by 0.95% to Rs 1,096.80, ASIANPAINT by 0.52% to Rs 1,395.00, CIPLA by 0.37% to Rs 560.00.

Top Losers

ZEEL By -10.05 % to Rs 332.05 ,BAJFIANANCE by -3.55% to Rs 2,910.00, RELIANCE by -3.41% to Rs 1,297.75, TATAMOTORS by -3.12 % to Rs 185.00., BAJAJFINSV by -2.87% to Rs. 7,345.00.

Analysis Of Top Gainer And Loser

HINDALCO is the top gainer in today's market session, the company has tied up with two international manufacturers of beverage cans US-based Ball Beverage Packaging AMEA and CAN-PACK India, arm of Poland-headquartered CAN-PACK.

ZEEL is the top loser in today's market, The company has been facing the selling pressure over the concern of the stake sale and the audit of the Q4FY19 financial statements.

Key Market News

  • April trade surplus at USD 13.84 billion, April imports up 4%, while exports down 2.7%, reported CNBC-TV18.
  • RBI is likely to conduct at least one more swap of rupees for dollars after the general election.
  • Foreign portfolio investors (FPIs) sold Rs 645.08 crore worth of domestic stocks on Tuesday, DIIs were net buyers to the tune of Rs 818.84 crore.
  • 57% down in India's oil imports from Iran in April.

Stocks To Watch

HDFCLIFE is on the upside while GLENMARK is on the downside.

HDFCLIFE is currently quoting at Rs.410.50 up by Rs 1.25 or 0.31% from its previous closing of Rs.409.25 on the NSE. The NSE stock has touched a 52 week high of Rs.548.25 on 14-MAY-2018 & a 52 week low of Rs.344.40 on 28-JAN-2018. The stock has shown strength in these weak market after making an upward breakout from a long consolidation and sustaining above that level the stock is likely to move in the upward direction.

GLENMARK is currently quoting at Rs.597.20 down by Rs.-37.65 or -5.93% from its previous closing of Rs.634.85 on the NSE. The NSE stock has touched a 52 week high of Rs 711.90 on 10-SEP-2018 & a 52 week low of Rs 493.50 on 21-May-2018. The stock witnessed a sharp decline in the share price and likely to remain in downtrend going ahead.

Share Market News 07-May-2019

Sensex,Nifty Drop to One-Month Low; Marico surges 8%

Indian market rose in early trade as the fears about trade war escalation between China and the US calmed somewhat after the statement from China's foreign ministry about the visit to the United States for trade talks. In the opening bell, the Sensex was up by 166.55 points at 38,766.89, while Nifty was trading at 11642.30. Among the sectors, except energy, all other indices were trading higher. The US stated that it can't ensure the sale of its crude oil to India on the concessional rate to make up for the cheaper Iranian oil going out the market, turned the negative sentiment for the OMCs.

In the Afternoon session, the Indian share market erased all its morning gains and was trading on the day's low. Reliance, IciciBank was down more than 1 percent. The Indian benchmark indices, Sensex was up by 21.46 points at 38621.80. Whereas Nifty was trading at 11596.60. Among sector, FMCG &Metal was the top gainer followed by a nominal gain in Pharma & Auto, On the other side Media & Energy were the top losers. In the broader Market, The Mid & Small-cap were trading in green with the gain of 0.20 percent each.

Indian share market had a Gap up opening in todays trade, however, the closing results were the same Nifty was down by 110.35 points at 11497.90, Sensex closed at 38276.63. The D-street in the last session has witnessed a sharp decline led by the Reliance and the Banking stock namely ICICIbank which were down more than 3 percent. With-the-sharp-fall, the indices have breach the important support levels and likely to continue the downtrend in the coming days. The X-factor for the breach of the elongated Rangebound market were the US-china trade escalation which spooked the investor's sentiment. In today's trading session, Media sector was in focus as Zeel, DishTv has been in selling pressure and witness a sharp decline in share price, While the outperformer was the Marico who had posted a strong result as compared to the peers. On the sectoral front, Except IT all other sectors were closed in the color of blood. In the broader market, The same pattern was followed by the Mid & Small- Cap which was down by 1.16 and 0.98 percent.

Top Gainers

HIDNUNILVR by 1.71% to Rs 1,679.50. ,INFRATEL by 1.38% to Rs 268.00 ,LT by 1.17% to Rs 1,368.50, HINDALCO by 1.06% to Rs 201.00, WIPRO by 0.91% to Rs 293.50.

Top Losers

TATAMOTORS By -4.90 % to Rs 190.00 , ZEEL by -4.33% to Rs 370.95, ICCIBANK by -3.76% to Rs 386.20, RELIANCE by -3.17 % to Rs 1,341.00., JSWSTEEL by -2.98% to Rs. 287.85.

Analysis Of Top Gainer And Loser

HIDNUNILVR is the top gainer in today's market session, After the continuous fall in the last 3 trading session the stock witness good buying from lower levels in todays trade.

TATAMOTORS is the top loser in today's market after the news came that the company phase out small diesel cars from its portfolio as demand is expected to slow down due to upcoming BS-VI emission norms that shall make such vehicles expensive.

Key Market News

  • Not going to allow trade deficit with China any more: Trump
  • Foreign portfolio investors (FPIs) sold Rs 948.98 crore worth of domestic stocks on Monday, DIIs were net buyers to the tune of Rs 89.89 crore.

Stocks To Watch

INFY is on the upside while M&MFINis on the downside.

INFY is currently quoting at Rs.724.40 up by Rs 6.00 or 0.84% from its previous closing of Rs.718.40 on the NSE. The NSE stock has touched a 52 week high of Rs.773.00 on 09-APR-2019 & a 52 week low of Rs.580.53 on 08-MAY-2019. The stock has shown strength, On the daily chart pattern, the stock is likely to give upmove.

M&MFIN is currently quoting at Rs.382.95 down by Rs.-12.60 or -3.19% from its previous closing of Rs.395.55 on the NSE. The NSE stock has touched a 52 week high of Rs 526.85 on 27-JUL-2018 & a 52 week low of Rs 342.65 on 05-Oct-2018. On the daily chart, the stock has made marubozu candlestick which is negative for the stock.

Share Market News 06-May-2019

Global Cues, Rising VIX drags Markets By A Percent

Tracking the selloff in the global market after President Trump threatened to hike tariff on Chinese import, The Indian share market reacted with a broad-based decline. The Sensex was down 380.44 points at 38582.82, While Nifty dropped nearly 1 percent to open at 11600.40. All the sectoral indices were trading in red led by metal, IT, infra, bank, auto, pharma, and FMCG. The optimism was only visible in the OMCs as the Brent crude fell 2.6% to $69 per barrel.

In the afternoon session, The Nifty was hovering around 11,600 Mark. The BankNifty which was the biggest loser continues to remain under pressure. Auto Metals & FMCG was the other losers down by more than a percent. Overall market sentiment during the session was negative which was also observed at India VIX which surged to 25.75 certainly. IT was the only sector to trade in the green, with TCS gaining by around 1.5 percent.

After the Gap down opening the index throughout the session witnessed the selling pressure. The consumer durable was the most active space in today's trade. slowdown and the decline in the volume Growth was the key concern for which space remained too much active. The Indian share market closed with a drop of more than a percent. On the sectoral front, Except IT all other sectors were in red. The pain was visible in metal, reality & banks. On the closing bell, The Sensex closed at 38600.34, while Nifty dropped by 114 points closing at 11598.30. In the broader market, the Midcap was down by 0.74 percent and the Small-cap declined by 0.94 percent. However, continuing its uptrend the India VIX closed at 26.49 up by 9.99 percent.

Top Gainers

BPCL by 2.42% to Rs 389.95. ,TCS by 1.09% to Rs 2,155.20 ,BAJAJFINSV by 0.79% to Rs 7,684.80, ITC by 0.64% to Rs 306.20, BHARTIARTL by 0.54% to Rs 333.25.

Top Losers

ZEEL By -6.42 % to Rs 385.00 , TITAN by -5.47% to Rs 1,082.40, YESBANK by -5.06% to Rs 167.00, TATAMOTORS by -4.46 % to Rs 200.10., JSWSTEEL by -4.05% to Rs. 296.35.

Analysis Of Top Gainer And Loser

BPCL is the top gainer in today's market session, The OMCs were trading in positive gains as the crude has cooled off and was trading below 69$ Per barrel in trading hours.

ZEEL is the top loser in today's market, In todays broad-based sell-off ZEEL had witnessed the maximum selling, The stock was trading weak from many sessions.

Key Market News

  • President Donald Trump dramatically increased pressure on China to reach a trade deal, saying he would hike U.S. tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon
  • The National Highway Authority of India (NHAI) is looking to rope in equity partners for funding highway projects in a bid to raise more funds and get around the problem of muted private investment.
  • India April Nikkei services PMI at 51.10 Vs 52.0 in March.
  • Foreign portfolio investors (FPIs) sold Rs 401 crore worth of domestic stocks on Friday, DIIs were net buyers to the tune of Rs 57.07 crore.

Stocks To Watch

TATACHEM is on the upside while TITAN is on the downside.

TATACHEM is currently quoting at Rs.602.00 up by Rs 45.50 or 8.18% from its previous closing of Rs.556.50 on the NSE. The NSE stock has touched a 52 week high of Rs.787.50 on 04-MAY-2018 & a 52 week low of Rs.550.10 on 15-FEB-2019. The company has posted the result above the street estimate. In todays trade, the stock was trading with heavy volume and seen good price action and may sustain going ahead.

TITAN is currently quoting at Rs.1,082.40 down by Rs.-62.65 or -5.47% from its previous closing of Rs.1,145.05 on the NSE. The NSE stock has touched a 52 week high of Rs 1,165.00 on 25-Apr-2019 & a 52 week low of Rs 732.30 on 09-Oct-2018. On the technical front, the stock has shown the weakness after making an all-time high may certainly witness more selling in coming days.

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ABOUT AUTHOR

Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.

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