Sensex ended at 31,159.62, up 1,265.66 points against the previous close of 29,893.96. While 50-share Nifty settled 363.15 points higher at 9,111.90.
Indian as well as global financial markets will open on Monday after a gap of three days as there was a trading holiday on April 10, on account of Good Friday.
“While the trajectory of Covid-19 infections in India is now getting steeper, there are hopes that lockdown will start to show positive results in the coming days. With the exception of the FMCG sector, valuations have become reasonable for most sectors. Investors should accumulate stocks with strong balance sheets, market leadership and good management quality. Such stocks can deliver good returns when economic conditions normalise,” said Sanjeev Zarbade, VP PCG Research at Kotak Securities.
Here’s what indicators are suggesting for the stock market action on Monday:
Lockdown all set to be extended
India is set for an extended lockdown of two more weeks till the end of April after nearly all chief ministers asked for the same in a meeting with Prime Minister Narendra Modi on Saturday and the Centre said it was considering the request, ET reported. According to market experts, a longer lockdown will further impact the economy and businesses.
Talks to cut oil production drag on
The world’s largest oil producers were still grasping for a deal to rescue energy markets from a coronavirus-induced collapse after three days of talks. Mexico remains the last holdout. An unprecedented reduction of about 10 per cent in worldwide crude output was still being negotiated in bilateral talks Saturday, Bloomberg reported. WTI crude on Thursday plunged 9.29 per cent or $2.33 a barrel to $22.76, while Brent slumped 4.14 per cent to $31.48.
US stocks rise on latest Fed rescue program
Wall Street closed out the trading week on a high note on Thursday as the US Federal Reserve unleashed another program designed to buoy local governments and businesses crushed by massive closures to stem the coronavirus outbreak, Reuters reported. The Dow Jones Industrial Average rose 285.8 points, or 1.22 per cent, to 23,719.37, the S&P 500 gained 39.84 points, or 1.45 per cent, to 2,789.82 and the Nasdaq Composite added 62.67 points, or 0.77 per cent, to 8,153.58.
European shares post best week since 2011
European stock markets gained for a fourth straight day on Thursday with sentiment propped up by the latest round of stimulus from the US Federal Reserve and on hopes the coronavirus pandemic was close to peaking. The pan-European STOXX 600 index closed up 1.6 per cent to end a holiday-shortened week 7.4 per cent higher – its best week since 2011. London’s FTSE led the charge among European majors, up 2.9%.
The man who saw the stock selloff coming now has no time for lockdown
Tech View: Nifty may be headed to 9,300-600
Nifty reclaimed the 9,100 mark in style on Thursday. In the process, the index decisively took out its 20-day moving average and formed a Long Bullish Candle on the daily and weekly charts. Analysts said the index has the potential to move towards 9,300 level, with the 8,800 level likely to offer support in the near term.
F&O: Bulls in charge, but Bank Nifty upside capped
After many weeks of continuous correction, Nifty witnessed emergence of buying interest, which helped Nifty negate lower top and lower bottom of last seven weeks. All sectoral indices participated in the upside momentum. The index has started to form higher highs and lows since last three sessions and managed to close above the 20 DEMA, indicating some stability in the market.
Nifty bank’s medium-term chart structure is negative, but some bounce could be seen with the immediate support at 19,100. Higher volatility and weakness in the overall trading setup suggest that the upside could be capped again.
Podcast: Sectors that may go out of steam if lockdown extends
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) on Thursday showed bullish trade setup on the counters of Future Consumer, RBL Bank, Bank of Baroda, Cholamandalam Investment, Bajaj Finance, Voltas, Bharat Forge, Lakshmi Vilas Bank, DCB Bank, Max India, City Union Bank, The Ramco Cements, Au Small Finance Bank, Bajaj Electricals, Can Fin Homes, Greaves Cotton, Kajaria Ceramics, Varun Beverages, Endurance Technologies, Metropolis Healthcare, Repco Home Finance, Coromandel International, Cigniti Technologies, JK Lakshmi Cement, Vindhya Telelink, Tube Investments, Prataap Snacks, Matrimony.com, Venus Remedies, Nagreeka Capital, Salasar Tech, Somi Conveyor and TCNS Clothing.
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 Amber Enterprises and BASF India. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Stocks showing buying interest
Cipla, Divi’s Laboratories, Ruchi Soya Industries, Alembic Pharma and Abbott India witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Thursday signalling bullish sentiment.
Stocks witnessing selling pressure
Oberoi Realty, SBI Cards & Payment Services and Future Retail witnessed strong selling pressure in Thursday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.
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