Wednesday At Share Market: HDFC Bank, ICICI Bank, Zomato Show Bullish Signs In A Dull Market

Tuesday did not turn out to be terrific for the share market. After a good opening on Monday, the market declined on Tuesday with both NSE and BSE closing on red. The National Stock Exchange’s Nifty was down by 34 points and closed at 16,951.70, while the Bombay Stock Exchange’s Sensex was down by 40.14 points to close at 57,613.72. Experts have a mixed view of the market today, although some feel that the Indian benchmark indices are likely to open on a positive note. 

The Big Gainers 

Here is a look at some of the big gainers on Tuesday. Vardhman Polytex was in the top gainers list and jumped 10.37 per cent, trading at Rs 22.35. In the last one month, it has seen a gain of 14.62 per cent. 

Shivalik Bimetal Controls witnessed a jump of 8.77 per cent and is trading at Rs 535. Its 52 week high is Rs 541.55 and in the last 5 days, it has gained by 16.44 per cent. 

Tips Films too saw a jump of 6.85 per cent and is available at Rs 424.05. This is a fluctuating stock but has given 9.26 per cent returns in the last one month. 

Surya Roshni gained by 5.85 per cent and is trading at Rs 647. Its 52 week high is Rs 741.35 but this too is a highly volatile share. 

Veranda Learning Solutions saw a jump of 5.23 per cent and is available at Rs 176. This share has been bearish for a while but is now showing bullish signs. 

Bullish Signs In These Shares 

According to the momentum indicator MACD, there are some stocks that are showing bullish signals. These include Zomato, Jaiprakash Power Ventures, ICICI Bank, HDFC Bank and Vedanta. 

Zomato saw a gain of 0.60 per cent and is available at Rs 50.40. Jaiprakash Power is available at Rs 5.25 after a gain of 0.96 per cent. 

ICICI Bank jumped by 0.97 per cent and is trading at Rs 856.90. HDFC Bank saw a gain of 0.90 per cent and is trading at Rs 1,581.60. Vedanta gained by 1.01 per cent and is trading at Rs 275.50. 

Expert Speak 

• Prashanth Tapse, Senior VP (Research), Mehta Equities 

Markets are likely to make a steady positive start amid positive cues from other Asian indices despite a slump in the US markets on Tuesday. Caution is likely to be the buzzword ahead of the expiry of March derivative contracts scheduled for today, a day before the normal expiry day due to holiday on March 30. The positive takeaway however from yesterday’s session was that FIIs turned out to be net buyers to the tune of Rs 1,531 crores. On the technical front, Nifty can enter choppy waters only below the 16827 mark, while smooth sailing could be only above 17221.

• Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One

The Indian equity market had a lackluster day of trade amid the absence of buying interest. Despite a positive start, suggested by the SGX Nifty, bulls lacked the confidence to capitalize on the move and the benchmark index hustled in a slender range throughout the day. Amidst the dull day, Nifty corrected 0.20 percent from its previous day’s close and settled slightly above the 16950 level As far as levels are concerned, 16900 remains the immediate support, followed by the sacrosanct support of the 16850-16800 zone. While on the higher end, 17100-17200 is likely to act as the sturdy wall, and an authoritative breach beyond the same could only trigger some more respite in the comparable period.

Going forward, we would advocate the participants to keep a close tab on the mentioned levels and avoid undue risk in the market. Even though the indices are not doing much, sector churning is visible in the broader market, and hence one should focus on identifying such potential movers. In the meanwhile, stay abreast with global developments.

• Shrikant Chouhan, Head of Equity Research (retail), Kotak Securities
  

On Tuesday, the benchmark indices witnessed narrow-range movement, with Nifty closing down 34 points while Sensex was down 40 points. Among sectors, there was a sharp correction in media and realty indices, with both indices ending over 1 percent lower, while banking and financial stocks saw some buying. Technically, for last three days, the market is taking support near 16900/57450, and at the same time, it is continuously taking resistance near 17100/58100 levels. We believe 16900/57450 will act as a major support level for the bulls. Above that, the index may retest 17050-17100/57900-58000 levels. On the other hand, fresh selling is possible only after breaking below 16870/57450, which may slide the index towards 16820- 16750/57200-57100.  For the bank nifty, 39150 could be level, below that we can expect further weakness.  On the higher side, 39500 and 39750 would be major hurdles. 

NIFTY RESIS - 17050 SUPP 16870. 

SECTORS - BANK AND COMMODITIES

(All views expressed by experts are personal. Investments are subject to market risks and this article suggests to invest wisely)