Closing bell:
The markets today were stressed because of the lockdown extension announcement made on Sunday. The benchmark indices were in red the entire session.
At the close, Sensex plummeted 1,068.75 points to end at 30,028.98. Meanwhile, Nifty tanked 313.60 points to 8,823.25.
Cipla, TCS were the top gainers in the lot. Whereas, IndusInd and Zee Entertainment were the top laggards. Bank, Auto and Financial services lost considerable points today.
Company updates: Pudumjee Paper Products has restarted production of specialty paper products at its Pune plant to meet the rising demand from the packaging industry.
The company had suspended production at its Pune plant on March 23 to ensure the safety of its workers in the wake of the Covid pandemic. Currently, Pune is classified as a red zone.
Rupee close:
Rupee settles 33 paise lower at 75.91 (provisional) against US dollar
NSE Nifty Update:
Dr. Reddy’s Laboratories Ltd has launched FXR a therapeutic equivalent generic version of Ocaliva (obeticholic acid) in India.
Ocaliva is a trademark of Intercept Pharmaceuticals. The drug is indicated for the treatment of Primary Biliary Cholangitis (PBC), in combination with Ursodeoxycholic Acid (UDCA) or as monotherapy in adults.
BSE Sensex update:
World update: SoftBank Group Corp said on Monday that Alibaba co-founder Jack Ma will resign from its board, in the latest departure by a high-profile ally of CEO Masayoshi Son.
The departure of Ma, who retired as Alibaba's executive chairman in September, comes as he pulls back from formal business roles to focus on philanthropy.
Trading pick of the week: Buy Alembic Pharmaceuticals
Investors with a medium-term horizon can buy the stock of Alembic Pharmaceuticals at current levels. The stock took support after recording a 52-week low at ₹25 in late March, following a medium-term downtrend from the key resistance level of ₹64.
Gilt funds:
According to Association of Mutual Funds in India (AMFI) data, net inflows into gilt funds — that invest in government securities — was ₹2,608.84 crore in April 2020. This was more than twice the total net inflows into gilt funds in FY20, of about ₹1,051 crore. This made gilt funds’ assets under management increase 28 per cent to ₹13,066 crore from March 2020 levels.
Stock update:
Shares of Reliance Industries on Monday gained nearly 2 per cent after the company announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore.
The heavyweight stock rose by 1.58 per cent to Rs 1,482 on the BSE in opening session.
Rupee call:
The rupee (INR) has witnessed a gap-down open today against the dollar (USD) as it has begun the session at 75.85 versus Friday’s close of 75.57. The immediate support is at 76 – an important level. A break below that level can invite more bears weighing on the domestic currency.
Blanket one-year ban on fresh insolvency under IBC
In a bid to offer respite to stressed corporates, in particular small businesses, Finance Minister Nirmala Sitharaman, announced suspension of fresh insolvency proceedings for a period of one year. Given that companies have been reeling under the Covid-led crisis and are staring at huge loss in revenues and earnings this fiscal, the Centre’s move undoubtedly offers a big relief to India Inc.
Updates:
Drug major Cipla's shares rose 3.24 per cent as it made the announcement of the submission of an application with the US health regulator for a generic version of GSK’s Advair Diskus, which is used in the treatment of asthma and other respiratory disorders.
HDFC Shares:
Shares of Housing Development Finance Corporation (HDFC) were trading down 2.73 per cent at ₹1,590.95 apiece on Monday at 10.22 am as the Reserve Bank of India (RBI) directed the Corporation to reduce its stake to below 50 per cent in its two insurance subsidiaries -- HDFC ERGO General Insurance Company Ltd and HDFC Life Insurance Company Ltd . Read more about this here.
Open: Rupee slips 30 paise to 75.88 against US dollar in early trade.
BSE Sensex update:
Stock analysis: Sun Pharmaceuticals
The long-term outlook still remains negative for Sun Pharmaceuticals (Rs 448), as long as it rules below Rs 628. However, the medium-term outlook turned positive for Sun Pharma while in the short-term it will move in a narrow range before pursuing a positive journey. The stock finds immediate resistance at Rs 477 and support at Rs 404. A close below the latter would drag Sun Pharma to Rs 365 and even to Rs 332. On the other hand, a conclusive end above Rs 447 has the potential to list the stock to Rs 525 and also to Rs 585.
Read more on this technicals here.
Sectoral index update:
FPIs exit markets:
Foreign portfolio investors (FPIs) have stepped up their selling in India’s equity market since Prime Minister Narendra Modi announced a ₹20-lakh crore economic package on May 12. Till Friday evening, nearly 40 per cent of FPI selling in the cash and derivative segments in May had come in just four trading days that week, data mined from provisional figures given by stock exchanges show.
A break-up of the figures reveals that FPIs sold ₹6,486 crore of cash stocks, ₹2,869 crore worth index futures and ₹737 crore in stock futures in four days. Read more on this report here.
9.30 am
Opening bell:
The markets opened on a negative note today as the country starts its lockdown 4. The NSE Nifty opened at 9,085.50, dropping 51.35 points or 0.56 per cent.
The BSE Sensex opened at 30,935.80, a fall of 161.93 points or 0.52 per cent.
Global market:
Asian shares were led higher by S&P 500 futures on Monday and oil prices hit a five-week peak as countries' efforts to re-open their economies stirred hopes the world was nearer to emerging from recession.
Summer weather is enticing much of the world to emerge from coronavirus lockdowns as centres of the outbreak from New York to Italy and Spain gradually lift restrictions that have kept millions cooped up for months.
9.00 am
Weekly trading guide
RIL (₹1,459.4)
The stock of Reliance Industries declined through last week. It ended the week at ₹1,459.4 after registering an intra-week low of ₹1,415.1 on Friday. At ₹1,415.1 lies the 21-day moving average, which is a key support.
Also, the stock has fallen below the important level of ₹1,500 and there are signs of further weakness. The daily relative strength index, though above the midpoint level of 50, has taken a downward path. The moving average convergence divergence indicator in the daily chart has turned the trajectory downwards, indicating a potential trend-reversal.
But the 21-day moving average at ₹1,415, along with ₹1,400, can be a good support zone that can possibly arrest further decline. So, despite bearish indications the stock can be expected to fall only if it breaks below ₹1,400.
So, traders can initiate fresh short positions with a stop-loss at ₹1,470 if the stock slips below ₹1,400. The nearest support can be spotted at ₹1,365 with the subsequent support at ₹1,320. Read more on this technicals here.