Mid-Day Market Watch on April 21, 2016

Indian markets saw their second successive gap-up opening on the back of exceptional performance from Banking sector stocks. Banks surged after RBI eased pressure on banks by reducing the number of companies whose loans needed to be against default risks.Currently Nifty is marginally positive with 21 points at Rs. 7935.65; and Sensex is trading at Rs. 25942.63 i.e. 98 points up from the previous close. 

Market breadth remained negative with 1099 Advances and 1225 Declines, majorly because of pessimism in the midcap segment and correction in the Nifty50 index. 

The morning move in the Indian markets was led by a remarkably positive movement in the Banking stocks specifically the PSU Banks viz; PNB and Canara Bank that surged more than 5 per cent. Bank Nifty trailed at Rs. 16705.85 i.e. a rise of 2.18 per cent. PSU Bank sector trailed 4.56 per cent higher at Rs. 2524.60. 

Amongst other sectors Financial Service sector surged 1.65 per cent while Pharma and Metal sectors remained marginally up. Auto was trading flat. On the downside FMCG, IT and Realty tumbled the most with more than 1 per cent loss each.

Top Nifty Gainers: Bank majors ICICI Bank, Bank of Baroda, SBIN and Axis Bank were the top gainers. Coal India and BPCL followed the banks as top gainers with 2 per cent upside.

Top Nifty Losers: Wipro was the lead dragger with 6.7 per cent fall irrespective of its positive results and buy back announcement in the previous day. Infratel, BHEL and ITC were the other top losers in the Nifty50.

Asian markets continued rallying followed by positive closure in the U.S. markets after oil prices jumped higher. Chinese shares remained volatile after Chinese markets faced their biggest daily loss in the in a week in the previous session. However, Nikkei 225 gained amid weakening Yen.

Buzzer: PNB broke the technical resistance level of 90. If it closes above this level it can traded around 95 levels in the coming sessions.

Nifty hit above its 2016 high at 7973 but failed to sustain and dropped. We hold 7950-7975 as the resistances and 7880-7785 as the major support levels in the coming sessions.