Mid-Day market watch on April 25, 2016

Indian markets tumbled owing to weak global cues. Markets witnessed a consolidation breakdown after three consecutive lethargic sessions in the last week. Our benchmark indices opened on a flat note but slid gradually making lower tops and lower bottoms to trade in red. Currently Nifty hits below 7850 mark at 7844 levels, a decrease of 0.6 per cent. SENSEX falls by 147 points at Rs 25691.

Market breadth remains highly negative with just 884 advances as against 1378 declines, nearly in the ratio of 1:1.5. Broader markets like Midcap and Smallcap too have fallen, but outperform the benchmark indices.

Almost all major sectors are trading in red whereas Metal is at the forefront of the move with 1.75 per cent loss. Pharma sector follows with 1 per cent downside. Information Technology sector remains flat at 11300 levels.

Top Nifty Gainers:
Telecom major, Bharti Airtel is the only Nifty50 stock trading with above 1 per cent gain at 1.7 per cent. TCS and Bajaj Auto follow with 0.9 per cent gain each. Ambuja Cements and Coal India are the next two in the list of top gainers.

Top Nifty Losers:
Hindalco and NTPC are the top Nifty50 losers with 3.5 and 3.8 per cent losses, respectively. Axis Bank, Maruti Suzuki and Tata Motors DVR are the next top losers losing nearly 2 per cent each.

Meanwhile, the Asian markets also opened weaker following a negative closure in the US markets on Friday. The US markets retreated with technology stocks sliding amid poor quarterly earnings. Europe too closed on a negative note followed by the pessimism in the auto and basic resource sectors.

Spot gold remained stable after one per cent drop on Friday but is likely to remain cautious ahead of Fed meeting to be announced later this week. Fed is expected to remain Dovish on the interest rate hike.

Buzzer: Mahindra and Mahindra Financial Services surged nearly 8 per cent at Rs 297.6 after the company posted strong Q4 earnings with 19 per cent rise in its revenues.

Reliance Industries tumbled 2 per cent irrespective of positive earnings report, amid delay in the launch of its telecom service ‘Reliance Jio’. 

Nifty broke below the previous forecast support level 7880 and is currently hovering around 7850 levels. We hold 7785 followed by 7735 as the next major supports for the Nifty. On the upside, 7910 followed by 7980 levels will act as the resistances in the coming sessions.