Markets witnessed a sharp turnaround on Monday, as a higher opening of 100 points was followed by a sharp decline to breach an intermediate low of 17,255 and settled below 17,200 in the Nifty 50. The selling pressure was mainly felt in the financial sector with Nifty Bank ending lower by more than 2% as a contagion of two failed U.S. banks impacted most of the small and mid-size banks in India.
For Nifty, the support line of the falling wedge placed at 17,205 was pierced on the closing basis and should be seen as a major reversal for an upcoming journey toward 19,500. An appearance of the falling wedge in Sensex 50 at a time of the re-test point of the earlier breakout point should be seen as a welcome sign for a major reversal of a downtrend. We expect the positive momentum to resume above 17,205 with an up move expected to accelerate at 2x speed based on the principle of falling wedge bottoms.
Nifty 50 & Enhanced Nifty
Stocks to watch
Positive Read through
- Aurobindo Pharma gets US FDA nod for Lurasidone Hydrochloride used to treat symptoms of Schizophrenia.
- BL Kashyap Wins an order of 158cr for the Construction of the Business Park Campus and residential complex in Bengaluru.
- Dr. Reddys get a US FDA nod for Icosapent Ethyl used to help control high triglyceride levels in the blood.
- Sona BLW long-term investors like Govt Of Singapore, Fidelity, FMR, ICICI Pru, and HDFC MF buy Blackstones 20.5 pct stake in co.
- Astral Ex-date for Bonus Issue 1 for 3.
- Apollo Pipes to consider the proposal for raising funds.
- Tube Investment- to foray into CDMO business- pharma segment.
- Bharti Airtel- rolls out higher minimum recharge plans.
- GAIL declares an interim dividend of Rs 4 per equity share.
- Lupin- USFDA completes inspection of Lupin’s bioresearch center in Pune with zero observations.
- Asian Paints- crude prices fall, brent below USD 81 a bbl.
- Krsnaa Diagnostic- 100 more pathology collection centers operationalized.
- NTPC- subsidiary to be the nodal agency for 4 GW GBP supply during peak summer.
Negative Read through
- ONGC/OIL- Crude prices fall, Brent below USD 81 a bbl.
- Mahindra CIE- M&M sold a 6.1 pct stake in Co at Rs 357.39 a sh via block deal.
- Mahindra Logistics- First Sentier Investor Fund sold a 1.74 pct stake.
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