KEY HIGHLIGHTS
Decoding The Week Gone By
Contributors To Nifty's Upside
Closing Bell: Final Hour Surge Leads To Weekly Advance
Indian equity markets ended the truncated week on a high, registering their second successive weekly advance. This is the first instance in two months where benchmark indices have had back-to-back weekly gains.
The S&P BSE Sensex ended 3.2 percent higher at 31,588, ending the week with gains of 1.4 percent. The 30-stock index had advanced over 12 percent last week.
The NSE Nifty 50 index too ended with gains of 3 percent at 9,266. 39 out of the 50 index constituents ended the day with gains. For the week, the index was up 1.77 percent.
Gains were led by private banks with Axis Bank and ICICI Bank ending with gains of 13 and 9.5 percent respectively.
Among sectoral indices, the Nifty Bank ended as the top performer with gains of 7 percent while the FMCG and Pharma index underperformed, ending with losses of 1 and 0.5 percent respectively.
Stock Update: Blue Star
- Among the top 10 gainers on the Nifty Smallcap Index
- Locked in a 10 percent upper circuit at Rs 543.10
- Biggest one-day gain seen by the stock since September 10, 2013
- Up for the second straight day
- Trades at a one-month high
- Today's surge on strong volumes which are 2.3 times higher than its 30-day average
- Up 32 percent from its 52-week high of Rs 408.9 on March 24, 2020
- 16 out of the 26 analysts tracking the stock have a buy recommendation; 3 sell calls
- Return potential of the stock as per Bloomberg data now at 41 percent
Trading Ideas From Sacchitanand Uttekar Of Tradebulls
- Buy Nifty Bank around 20,480 - 20,400 for target of 21,500 and stop loss of 20,140
- Buy ICICI Bank around Rs 370 for target of Rs 395 and stop loss of Rs 362
- Buy Blue Star around Rs 544 - 540 for target of Rs 590 and stop loss of Rs 510
Stock Update: Shalby
The company has informed the exchanges that it has recieved an order from the District Collector of Indore for preparation, availability, screening and testing of suspected cases of Covid-19 at their Hospital.
The suspect cases will be screened and tested at the Indore facility while other units will function as per normal course of operation as per the company.
The stock gained as much as 17.5 percent to Rs 72.95. It was the biggest one-day gain for the stock since listing.
Active Stock Options
- TCS’ 1,900 Call: Premium up 46.5 percent to Rs 37.65. The contract has added 79,750 shares in Open Interest.
- State Bank Of India’s 200 Call: Premium off the day's high; up 2 percent to Rs 7.9. The contract has added 18.4 lakh shares in Open Interest.
- ICICI Bank’s 400 Call: Premium up 65.1 percent to Rs 7.35. The contract has shed 1.33 lakh shares in Open Interest.
Stock Update: Wockhardt
- Gained as much as 4.44 percent to Rs 280; now off the day's high
- Up for the 10th straight session
- Longest winning streak since listing in February 2000
- Gains 60 percent in the last 10 sessions
- Has almost doubled from its 52-week low of Rs 146.7 on March 24, 2020
- Today's volumes are below its 20-day average
- 50-day Moving Average for the stock lies at Rs 273.57 while the 200-day Moving Average is at Rs 282
- The stock trades above its 100-day Moving Average of Rs 267.82
Trading Ideas From Kunal Rambhia Of The Streets
- Sell Reliance Industries futures below levels of Rs 1,190 for target of Rs 1,075 and stop loss of Rs 1,220. Sell 1,100 Put in order to partially hedge your position.
- Sell Maruti below Rs 5,300 for target of Rs 5,000 and stop loss of Rs 5,400. Sell 4,800 Put in order to partially hedge your position.
Markets At 2:10 P.M.
- Benchmark indices holding on to gains
- Nifty up 1.9 percent at 9,164
- Nifty futures trade at a premium of 35 points
- Sensex up 2 percent at 31,203
- Nifty Bank up 3.3 percent at 20,039
- Nifty Midcap Index up 1.7 percent
- Nifty Smallcap Index up 2.5 percent
- India Volatility Index down 6 percent to 43.36
- Nifty FMCG Index (Down 1 percent) is the only sectoral laggard
- Nifty Auto Index (Up 3.5 percent) and Nifty Realty Index (Up 4.4 percent) are holding on to gains
- Eicher Motors is the top Nifty gainer; Up 6.6 percent
- Tech Mahindra remains the top Nifty loser; down 3.3 percent
- 1,319 stocks are advancing while 445 are trading with declines
Money Market Update
The Indian currency managed to snap a three-day losing streak, yet reported its third consecutive weekly drop.
The rupee appreciated over 0.5 percent to end at 76.38 against the U.S. Dollar, as compared to Thursday’s close of 76.79. Today's strength ensured that the currency posted a weekly drop of only 0.1 percent.
Yield on the 10-year bond ended at 6.34 percent compared to today’s start of 6.41 percent after the Reserve Bank of India cut Reverse Repo Rate by 25 basis points and announced a TLTRO 2.0 worth Rs 50,000 crore.
Stock Update: Sundram Fasteners
- Among top performers on the BSE 500 index
- Gained as much as 18.6 percent to Rs 359.3
- Biggest single-day jump since May 2009
- Up for the sixth straight session
- Gains 33 percent in the last six sessions
- Best gaining streak in three months
- Best six-day returns since August 2016
- Trades at the highest level in a month
- Today's volumes are 3.2 times higher than its 30-day average
- 5 out of the 6 analysts tracking the stock have a buy rating
- Return potential of the stock as per Bloomberg data is 44 percent
Stock Update: Orient Refractories
- Top performer on the BSE Smallcap Index
- Locked in a 20 percent upper circuit at Rs 164.80
- Biggest one-day surge since listing in 2012
- Up for the third straight day
- Up 25 percent in the last 3 trading sessions
- Up in 6 out of the last seven sessions
- Gains 48 percent in the last 7 sessions
- Today's volumes are 0.8 times higher than its 30-day average
- All 4 analysts tracking the stock have a buy recommendation
- Return potential for the stock as per Bloomberg data is 57 percent
European Markets Positive
Benchmark indices across Europe have opened with gains, tracking positive cues in the U.S. futures as well as across the Asia Pacific.
All sectors across markets are gaining led by Cyclical miners, travel and auto. Healthcare and F&B stocks are among the key laggards.
Lets take a look at how the benchmark indices are faring in opening trades:
- Euro Stoxx 50 up 2.7 percent to 2,887
- DAX up 2.8 percent to 10,590
- CAC up 2.7 percent to 4,469
- FTSE 100 up 2.7 percent to 5,779
- IBEX 35 up 2.6 percent at 6,938
Stock Update: NBCC
- Gains as much as 8.7 percent to Rs 24.85
- Up for the seventh straight day
- Up 49 percent in the last 7 trading sessions
- Longest winning streak since February 2019
- Today's volumes are 1.3 times higher than its 30-day average
- Breaks above its 50-day Moving Average of Rs 23.73
- 5 out of the 11 analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 19 percent
Stock Update: Kolte-Patil Developers
- Among the best performers on the Nifty 500 index
- Gains as much as 20 percent to Rs 160.35
- Biggest one-day jump since March 2011
- Up for the third straight day
- Longest gaining streak in three months
- Up 26 percent in the last 3 sessions
- Today's volumes are 10.2 times higher than the 30-day average
- Best three-day returns since December 2012
- Return potential of the stock as per Bloomberg data at 88 percent
What Is Saurabh Mukherjea Of Marcellus Betting On
Markets At Noon
- Benchmark indices off day's high
- Nifty up 1.3 percent at 9,114
- Nifty futures trade at a premium of 17 points
- Sensex up 1.4 percent at 31,040
- Nifty Bank up 2 percent at 19,790
- Nifty Midcap Index up 1.6 percent
- Nifty Smallcap Index up 2.2 percent
- India Volatility Index down 4.4 percent at 44
- Nifty FMCG (Down 1.1 percent) and Nifty Pharma (Down 0.7 percent) the only sectoral laggards
- Nifty Realty Index the top sectoral gainer up 4.7 percent
- TCS the top Nifty gainer; up 5.7 percent
- Tech Mahindra the top Nifty loser; down 3 percent
- 1,292 stocks are advancing while 423 stocks trade with losses
Nifty Realty: Top Sectoral Gainer
Active Stock Options
- TCS’ 1,900 Call: Premium rises 56.23 percent to Rs 40.15. The contract has added 66,750 shares in Open Interest.
- TCS’ 1,700 Put: Premium falls 55 percent to Rs 35.9. The contract has shed 71,750 shares in Open Interest.
- TCS’ 1,800 Put: Premium falls 48 percent to Rs 68.35. The contract has added 1.75 lakh shares in Open Interest.
- State Bank of India’s 200 Call: Premium rises 3.2 percent to Rs 8. The contract has added 7.8 lakh shares in Open Interest.
- ICICI Bank’s 360 Call: Premium rises 32.2 percent to Rs 18.25. The contract has added 3.2 lakh shares in Open Interest.
Stock Update: Affle India
- Gained as much as 7.3 percent to Rs 1,374
- Biggest single-day gain in two months
- Up for the seventh straight day
- Longest gaining streak since listing
- Up 40 percent in the last seven sessions
- Was locked in a 5 percent upper circuit for the last six sessions
- Today's volumes are 1.6 times higher than its 30-day average
- Trades at a one-month high
- Still 41 percent below its 52-week high of Rs 2,297 on February 19, 2020
Stock Update: Cadila Healthcare
The drugmaker has informed the exchanges that it has gotten the final approval from the U.S. FDA to market Erlotinib Tablets in strengths of 25, 100 and 150 mg.
The drug is used to stem the growth and spread fo cancer cells in the body, according t the company's press release. The drug will be manufactured at the company's formulation manufacturing facility at the SEZ in Ahmedabad.
Shares fell as much as 3 percent to Rs 333 after rising 2.5 percent in early trade.
RBI Announces Measures For Banks
RBI Cuts Reverse Repo Rate
The Reserve Bank of India announced further measures to strengthen the economy impacted due to the Covid-19 outbreak, by cutting the Reverse Repo Rate by 25 basis points to 3.75 percent.
The rupee which ended near its record low on Thursday, strengthened by over 40 paise to 76.37 against the U.S. Dollar.
Yield on the 10-year bond also fell to 6.29 percent after opening at 6.41 percent.
Some of the other measures announced by the central bank include:
- Undertaking TLTRO 2.0 for Rs 50,000 crore in tranches of appropriate size.
- Funds of TLTRO 2.0 to be invested in bonds, commercial papers and NCDs of NBFCs with at least 50 percent of them going to mid-sized NBFCs and MFIs.
- To provide refinance facility of Rs 50,000 crore to NABARD, SIDBI and National Housing Bank to address the credit needs of the sector. Of the Rs 50,000 crore, NABARD to be given Rs 25,000 crore, SIDBI to be given Rs 15,000 crore while the NHB will be given Rs 10,000 crore.
F&O Snapshot: Active Options Contracts
- Nifty April futures add 8.2 percent in Open Interest and 7.7 lakh shares
- Nifty Bank April futures add 2 percent in Open Interest and 27,000 shares
Nifty: April 23 Expiry
- 9,500 Call: Premium rises 134.3 percent to Rs 104.75. The contract has added 5 lakh shares in Open Interest.
- 9,000 Put: Premium falls 44.5 percent to Rs 106.3. The contract has added 5.44 lakh shares in Open Interest.
- 8,800 Put: Premium falls 46.7 percent to Rs 61.55. The contract has added 2.4 lakh shares in Open Interest.
Nifty Bank: April 23 Expiry
- 19,000 Put: Premium falls 34.2 percent to Rs 284. The contract has added 1.15 lakh shares in Open Interest.
- 22,000 Call: Premium rises 245 percent to Rs 136.25. The contract has added 1.44 lakh shares in Open Interest.
- 21,000 Call: Premium rises 189 percent to Rs 371. The contract has added 1.13 lakh shares in Open Interest.
Stock Reaction: Oberoi Realty
Shares of the real estate player gained as much as 14.8 percent to Rs 391.95. It is also the top gainer on the Nifty Realty Index.
The company informed the stock exchanges that it has pre-paid 125 listed NCDs worth Rs 1 crore each, aggregating to Rs 125 crore along with its interest repayment, ahead of its scheduled date of April 23, 2020.
The stock is up for the third day in a row and has seen its biggest one-day gain since February 2018. The stock has gained over 28 percent in the last 3 sessions.
Market Update At 10:10 A.M.
- Benchmark indices see strong gains
- Nifty up 2.9 percent at 9,256
- Nifty futures trade at a premium of 28 points
- Sensex up 3 percent at 31,525
- Nifty Bank up 4.4 percent at 20,243
- Nifty Midcap and Smallcap Index up 3 percent each
- India Volatility Index down 5 percent to 43.71
- All sectoral indices trade with gains
- Nifty Pharma and Nifty FMCG index underperform (Up less than 1 percent)
- Nifty Auto, Metal and PSU Bank index gain 3 percent
- Bajaj Finserv is the top Nifty gainer; up 8 percent
- Hindustan Unilever is the top Nifty laggard; down 1 percent
- 1,434 stocks are advancing while 211 stocks are trading with losses
Stock Reaction: Graphite India
The stock is locked in an upper circuit of 5 percent, after it informed the exchanges that it has resumed partial manufacturing operations at its graphite electrode plant in Nashik.
The press release stated that it is engaging minimum labour after obtaining requisite permission from the authorities.
Shares are gaining for the 14th straight session and are locked in a 5 percent upper circuit for the 10th straight day. The stock has gained 86 percent during this period.
How Are The Sectoral Indices Faring
Stock Update: Larsen & Toubro
The company has informed the exchanges of its Buildings and Factories business winning ‘significant’ orders.
The factories arm has won a design and build order from a leading cement player to execute and commission a 9,500 Tonnes Per Day cement plant in Madhya Pradesh.
The residential arm has won an order from a reputed developer in Bengaluru while the I.T. and Office spaces business has won an order from a key government organisation to construct its smart data centers at Hyderabad and Chennai.
Shares gained as much as 3.1 percent to Rs 939.55 and are up for the eighth day in a row. This is the longest winning streak for the stock since January 27, 2015.
All Constituents Of The Nifty Bank Index Gain
Stock Reaction: TCS
Shares of Tata Consultancy Services Ltd. surged as much as 6 percent to Rs 1,819 on the National Stock Exchange after its fourth quarter earnings.
The company's fourth quarter performance met analyst estimates even as the Covid-19 pandemic stalled economic activities and spending across the globe.
The I.T. services major has warned of its topline contracting in FY21 with hopes of normalcy returning only in the third quarter, according to CEO Rajesh Gopinathan.
We’re going to see a contraction in terms of demand in the near-term. We cannot predict how demand will pan out in the short-term.V Ramakrishnana, CFO, TCS
Shares snapped a three-day losing streak and are among the top performers on the Nifty 50 index.
Contributing To Nifty's Gains
Opening Bell: Strong Start Cheering Global Cues
Indian equity markets have begun the final trading day of this truncated week on a strong note, tracking positive cues across Asian markets and in U.S. futures.
The S&P BSE Sensex opened 3.44 percent higher at 31,656 while the NSE Nifty 50 index opened at 9,323, higher by 3.7 percent. All constituents of the Nifty and the Sensex opened with gains.
Both benchmark indices are poised to post their second successive weekly gain for the first time in two months.
All sectoral indices opened with gains, led by the Nifty Bank which opened 5 percent higher while Nifty Auto, Metal and the PSU Bank index opened with gains between 3-3.5 percent.
Latest Update On The Coronavirus
- Global cases reach 2.1 million with death toll rising to 1.44 lakh
- China's economy shrinks for the first time since at least 1992
- Wuhan revises its death toll to 3,869 from 2,579
- Cases in Singapore's dormitories intensify
- Shutdown in New York extended to May 15
- Japan expands its state of Emergency while U.K. adds three more weeks to its restrictions.
- Total cases in India rise to 13,387 with the death toll now at 437
Trading Ideas From Shubham Agarwal Of Quantsapp.com
- Buy HDFC's 1,700 Call for target of Rs 80 and stop loss of Rs 40
- Buy State Bank of India's 200 Call for target of Rs 12 and stop loss of Rs 5.5
Key Stocks In Focus
- TCS: Warns of revenue contraction in FY21
- Tata Motors: Fitch downgrades long-term issuer default rating to B from BB- with a negative outlook.
- Aviation Stocks: Ministry of Civil Aviation has asked airlines to refund the full amount for both international and domestic travel without levy of cancellation charges. Refund will be made if tickets are booked during the lockdown period.
- Mahindra & Mahindra: Renewable Energy subsidiary completes sale of its arm Divine Solren to CLP India for Rs 124.47 crore.
- Graphite India: Begins partial manufacturing operations at its Graphite electrode plant in Nashik
- BEML: L&T Mutual Fund reduces stake to 2.69 percent from 5.11 percent
- Reliance Industries: CLSA cuts price target to Rs 1,500 from Rs 2,100; maintains buy rating
For all that you need to know going into today’s trading session, click here.
Your Trade Setup For The Day
How Did Fund Flows Fare On Thursday
A Check On Indian ADRs
U.S. Markets On Thursday
- Benchmark indices rallied as President Donald Trum's team began mapping out a phased reopening plan of the economy.
- S&P 500 ended with gains of 3 percent while the Nasdaq 100 erased its losses for 2020.
- More than 22 million Americans have filed for jobless benefits since the economy came to a halt following the Covid-19 outbreak
- The Bloomberg Dollar spot index rose 0.4 percent
- West Texas Intermediate crude was and is flat around the $20 per barrel mark
Find out what is happening across the Asian markets this morning here.
RBI Governor To Address The Media
Week Likely To End On A High
Indian equity markets are likely to end the truncated week on a positive note with the SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rising 3.3 percent to 9,250 as of 7:10 a.m.
Asian Markets are rising along with futures in Europe and the U.S. amid tentative steps to restart the economy. Treasuries have fallen along with the U.S. dollar while oil remains below the $20 per barrel mark.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
RECOMMENDED FOR YOU
POPULAR