Market movers: key trends from this week’s rally.

Market movers: key trends from this week’s rally.

Though bank, metal and auto stocks did witness some buying, pharma and FMCG continue to remain under pressure. Here are some captures of the key trends from the session that took place earlier this week. 

Pharma sector slides for the third day in a row

Even though Indian companies announced the procurement of licenses for COVID therapy drugs, pharms stocks could not be saved from the battering. Both Sun Pharma and Aurobindo Pharma fell by over 2 percent to INR 453.90 and Rs 676 respectively. Biocon, Divi’s Labs, Lupin, and Piramal Enterprises also dropped by 1-2 percent, which then drove Nifty Pharma 1.07 percent lower. 

Maruti, Kotak, and Nestle

Kotak Mahindra Bank, with its March quarter profit, managed to rise 2.35 percent to INR 1,186.50. Maruti Suzuki had also released its quarterly numbers on Wednesday and gained 1.72 percent to reach INR 5,035.25. On the other hand, Nestle India plunged 5.38 percent to INR 16,518.70.

Meanwhile, realty stocks hit the upper circuit:

Ahead of the announcement of economic stimulus, a lot of realty stocks hit the upper circuit. These include Sobha, Shankara Building Projects, and Indiabulls Real Estate. Other than that, other stocks that hit the upper limits include Lemon Tree, Inox Wind, Edelweiss Financials, SpiceJet, and DHFL among 250 others.

Insider trading

Directors of Sacheta Metals acquired a thousand shares in an open market purchase, after which the stock gained 2.57 percent to reach INR 11.99. Someone at Mindtree bought 2500 shares of the company. As far as other transactions are concerned, a large number of shares of Solara Active Pharma were invoked which caused a 1 percent fall in the prices. Uttam Tibrewal, a director at AU Small Finance Bank, also pledged around 11.3 lakh shares, following which the shares of the company jumped by 5 percent.

Stocks that hit the lower circuit:

200 stocks hit the lower circuit on BSE, including Gayatri Projects, Sadbhav, and Jain Irrigation System and Reliance Capital among others.

Stocks that gave buy and sell signals

75 BSE listed stocks gave a ‘buy’ signal as they crossed the signal line on the MACD indicator. These include Arvind, NMDC, Tata Teleservices, Tata Power, IRCTC, BEML, Ircon International, and SJVN and among others.

Based on the same indicator, 39 stocks gave the sell signals; including Reliance Capital, Karur Vysya Bank, JK Paper, IndiaMART, Godrej Agrovet, and Va Tech Wabag among others.

Where is Nifty headed?

For the medium term, analysts state that we are expecting the index to test 9800 to 10,000 levels. Downside support is seen at 8,900. Energy stocks will possibly remain under pressure, though banking and metal stocks can be accumulated. Options data also proposed a limited downside for the near term, with a high possibility of consolidation for the next week.