Podcast | Stock Picks of the Day: These 3 trading ideas could offer up to 5-10%
A volatile day but bulls managed to pull the index around its 100-days exponential moving average (D-E-M-A) helped by a recovery in banking stocks. Even though market reversed losses, both Sensex & Nifty fail to turn positive towards the closing of the trade.
The 30-share BSE Sensex was down 21.04 points at 33,835.74 and the 50-share NSE Nifty declined down 16 points to 10,410.90.
SBI, Axis Bank, ICICI Bank, Yes Bank, Tech Mahindra, Ambuja Cements and Bajaj Finance gained up to 3 percent.
On the other side, Tata Steel, IOC, HDFC, and HPCL were down up to 3 percent.
Banks made a major surge from lows in the 2nd half of the session. The Nifty Bank was back above 200-DMA, recovering 360 points from day’s low.
Market breadth was balanced with advance:decline ratio at 1:1 which means both bulls and bears tried their dominance on D-Street.
On the sectoral front: banks, consumer durables, IT and finance stocks advanced while oil & gas, telecom, energy, and realty stocks closed in the red.
But, it was not a bad day for stocks which hit a fresh 52-week high. Almost 60 stocks on the BSE hit fresh 52-weeks high which include names like Aarti Industries, Vadilal Enterprises, NIIT Technologies, Eris Lifesciences, Jindal Worldwide, Godrej Agrovet, and Tech Mahindra.
Stocks in news:
Public sector banks shares recovered sharply from day's low to gain up to 10 percent, led by short covering. These shares had fallen up to 4 percent in morning after the increase in PNB fraud amount for the second time.
Fortis Healthcare: Shares of Fortis Healthcare advanced 4.1 percent as Yes Bank acquired a stake in the company.
Yes Bank has acquired 89,781,906 equity shares, constituting 17.31 percent of the paid-up share capital of Fortis Healthcare, pursuant to the invocation of pledge on the said equity shares subsequent to default by promoters group companies in the credit facility provided by the bank, company said in a release.
Coal India: Coal India shares slipped by nearly 1 percent towards the closing of trade after brokerage firm Citi downgraded the stock to Neutral from Buy and lowered its target price to Rs320 a share from Rs365 earlier.
In other News
A) Expectation ahead of RBI policy: The Reserve Bank of India (RBI) is expected to cut key policy rates by 25 bps in August, which will lead to lending rate cuts, and in turn, support growth, says a report.
"We continue to expect RBI to cut 25 bps in August, if rains are normal, to cool yields and signal lending rate cuts, BofAML said in a research note.
B) State-owned steel company Mishra Dhatu Nigam (MIDHANI) will open its initial public offering for subscription on March 21, with a price band of Rs 87-90 per share.
C) Markets regulator Sebi is considering linking retail investors' exposure to derivatives with their income, a move aimed at preventing them from taking unreasonable positions in risky instruments.
The issue is expected to be discussed at the board meeting of the Securities and Exchange Board of India (Sebi) this month, officials said.
D) February WPI Inflation eased to 2.48 percent versus 2.84 percent MoM. Manufacturing product inflation was at 3.04 percent and vegetable inflation at 15.26 percent.
E) ICICI Securities, the broking business subsidiary of ICICI Bank, is expected to open its initial public offer on March 21, reports CNBC-TV18 quoting sources.
Asian markets closed lower following the sacking of US Secretary of State Rex Tillerson and amid talk of potential US tariffs against China. Nikkei, Hang Seng, Shanghai, ASX 200 and Kospi were down 0.3-0.9 percent.
European markets recoup opening losses to trade mildly higher. France CAC, Germany DAX, and Britain FTSE are up 0.3 percent each.