Mid-Day market watch on April 28, 2016

The flattish Indian markets slipped suddenly owing to weak global cues. No fresh monetary stimulus by Bank of Japan in its recent policy review dragged Nikkei 225 to trade down by 3.7 per cent at 16666 levels. Bank of Japan kept the rates unchanged at -0.1 per cent.

Our benchmark indices are down by 1 per cent each; whereas Nifty hit below 7900 mark. Nifty broke its 2016 high at 7992 but could not sustain at the said level. Sensex broke 26100 on the upside but tumbled down to trade below 25850 levels.

Market breadth turned negative with 842 advances; and 1466 declines at a ratio of 1:1.7. Broader markets are trading in line with the benchmark indices.

On the sectoral front defensives viz; IT and FMCG fell more than 1 per cent each. IT sector dipped, attributed to fall in HCLTECH by 3.6 per cent amid weak Q3 results. On the contrary Realty sector saw an outstanding rise of 2.7 per cent with the proposal of hike in FSI (Floor Space Index) in Mumbai.

Top Nifty Gainers:
Banking stock Yes Bank has surged 2.6 per cent and has grabbed the top position in Nifty50. Telecom majors IDEA and Bharti Airtel follow with 1.7 and 1 per cent rise, respectively. Lupin is the fourth topper with 0.9 per cent gains.

Top Nifty Losers:
After HCL Technologies, BHEL and M&M have fallen the most with more than 2 per cent losses. Tech Mahindra and Hindalco follow with nearly 1.9 per cent losses.

U.S markets remained mixed in yesterday’s session where Dow and S&P closed marginally up while Nasdaq tumbled nearly half a per cent. Federal Reserve left the interest rates unchanged and made vague statements about any rise in June. Low domestic inflation and other economies striving for economic recovery refrained FED from making any hawkish statements.

Buzzer: Indiabulls Real Estate jumped 10 per cent on proposal of hike in FSI (Floor Space Index) in Mumbai.

Nifty is struggling below 8000 mark. Hence we maintain our view of 8040 followed by 8070 as major resistances provided Nifty hits above 8000 on closing basis. On the downside, we hold 7885 followed by 7825 as the supports for now.