The headline indices BSE Sensex and Nifty 50 managed to cover the lost ground in the last hour of the trade to close flat in Friday's volatile session.
The headline indices BSE Sensex and Nifty 50 managed to cover the lost ground in the last hour of the trade to close flat in Friday’s volatile session. Sensex hit day’s low of 30,770 and ended flat at 31,098, while Nifty 50 index managed to close above 9,100-mark, at 9,137. The gains were capped by M&M which was down 4.70 per cent and select private bank stocks such as ICICI Bank, Axis Bank and HDFC Bank, which were the top contributors towards today’s fall. “The market exhibited volatility before ending flat today following tranche 2 of the stimulus package by the government. Although in the right direction, the package did nothing to enthuse the markets. Without this boost, markets were left to worry about the rising virus cases and lacklustre earnings commentary,” Vinod Nair, Head of Research at Geojit Financial Services, said.
What kept investors on edge
FM presser: Finance Minister Nirmala Sitharaman will announce the third tranche of finer details of the Rs 20 lakh crore stimulus. “Concerns are emerging on the make-up of Lockdown 4.0. It is this uncertainty that is weighing on investors’ minds. The 3rd press conference of the FM today and the new norms of Lockdown 4.0, alongwith global developments will determine market moves for next week,” Vinod Nair added.
Bharti Airtel top Sensex gainer: M&M slipped nearly 5 per cent and ended as the top Sensex loser followed by Axis Bank, IndusInd Bank, Hero MotoCorp and Sun Pharma. While Bhart Airtel gained nearly 3 per cent and was the biggest gainer. Asian Paint, Tata Steel, NTPC, Reliance Industries were other gainers on the Sensex.
Nifty Metal up 1.6%: Except Nifty Metal and Nifty FMCG, all the sectoral indices traded in red. Nifty Metal index gained over 1,5 per cent with Vedanta, SAIL, Hindustan Zinc and NMDC as top gainers. Nifty Bank index dropped 1.23 per cent dragged by Bank of Baroda, Federal Bank and Bandhan Bank.
Technical view: “On the weekly chart the index has formed a Bearish candle with a long upper shadow indicating selling at higher levels. The index is moving in a Lower Top and Lower Bottom formation on the weekly chart indicating sustained down trend. The chart pattern suggests that if Nifty breaks and sustains below 9050 level it would witness selling which would lead the index towards 8900-8700 levels. However if the index crosses above 9200 level it would witness buying which would take the index towards 9400-9600,” Rajesh Palviya, Head Technical & Derivatives, Axis Securities told Financial Express Online.
Market outlook: Analysts expect volatility to continue next week as the k ey economic data releases coming out from major economies of the world, continue to be extremely negative. “Markets are expected to trade volatile in the coming week, as the actual impact of the government announcements made so far and more to come in the weekend, will be deciphered, analysed and then acted upon by the market in the coming week. Also, global markets are in a state of flux, as COVID-19 continues to play havoc on world economies. Caution is advised to traders and investors,” Aamar Deo Singh, Head Advisory, Angel Broking Ltd, said.