INSUBCONTINENT EXCLUSIVE:
NEW DELHI: A historic collapse in US crude oil prices to below zero level in overnight trade resulted in a knee-jerk reaction in equities
the world over and domestic equities too plunged in tandem.
Sensex lost 1011.29 points to 30,636, wiping off some Rs 3.3
lakh crore in equity investor wealth, while the 50-share Nifty settled 280 points lower at 8,981.
Concerns over mounting Covid-19 cases and
fears of a further extension of the lockdown in some urban areas beyond May 3 kept investors jittery.
Analysts said that investors will keep
a close watch on oil prices, the next batch of quarterly earnings and the rate of spread of Covid19 infection over the next few sessions
Earnings will remains in focus in the immediate future," said Vinod Nair, Head of Research at Geojit Financial Services.
What does it bode
for domestic equities? Will the market begin on Wednesday where it left today? Have a look at what some of the key indicators are suggesting
crude prices to below zero and gloomy quarterly forecasts heralded the biggest economic slump since the Great Depression
Dow fell 285 points, or 1.21%, at the open while the S-P500 slipped 38.35 points, or 1.36%, and the Nasdaq 100 points, or 1.17%.
Oil price
at two-decade lowBenchmark Brent and US oil futures for June delivery plunged to around two-decade lows on Tuesday, a day after US May
futures sank into negative territory for the first time in history as demand tumbled due to the coronavirus crisis
Brent for June delivery, the front-month contract, fell to as low as $18.10, its lowest since November 2001
The June contract for US West Texas Intermediate (WTI) crude dropped 23.7% to $15.59, after hitting its lowest since 1999.
European shares
take a knockAs of 2000 hours (IST) European markets traded sharply lower on Tuesday as oil market volatility and the coronavirus outbreak
The pan-European Stoxx 600 fell more than 2% in afternoon trade, driven lower by basic resources stocks, which plummeted more than 4%
All sectors and major bourses were trading below the flatline
Tech View: Nifty needs to top 9KNifty50 on Tuesday slipped below the 9,000 level in a global selloff triggered by the collapse of crude oil
Analysts said only on a close above the 9,100 level can instill confidence among traders
A fall in the index below the 8,900 mark, they said, could send the index drift towards the 8,550 level.
F-O: Nifty showing bearish
opened gap down from the same previous gap-up area, which had a bearish implication for the market
After positive market breadth in last six consecutive sessions, the market breadth turned in favour of declines.
Stocks showing
bullishnessMomentum indicator Moving Average Convergence Divergence (MACD) on Tuesday showed bullish trade setup on the counters of Omaxe
and One Point One Solutions
The MACD is known for signalling trend reversals in traded securities or indices
It is the difference between the 26-day and 12-day exponential moving averages
When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement
Most active stocks in value termsRIL (Rs 3377.56 crore), Aurobindo Pharm (Rs 2310.02 crore), ICICI Bank (Rs 1682.26 crore), Bajaj Finance
(Rs 1571.14 crore), HDFC Bank (Rs 1529.20 crore), Sun Pharma (Rs 1439.87 crore), Axis Bank (Rs 1416.21 crore), IndusInd Bank (Rs 1208.97
Reddy's Lab (Rs 1134.37 crore) and HDFC (Rs 1106.62 crore) were among the most active stocks on Dalal Street on Tuesday in value terms
Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in
volume termsVodafone Idea (Shares traded: 25.11 crore), YES Bank (Shares traded: 7.61 crore), Tata Motors (Shares traded: 5.82 crore), SBI
(Shares traded: 5.30 crore), ICICI Bank (Shares traded: 5.01 crore), Vedanta (Shares traded: 4.40 crore), Motherson Sumi (Shares traded:
3.90 crore), Ibull HousingFin (Shares traded: 3.77 crore), Aurobindo Pharma (Shares traded: 3.72 crore) and NCC (Shares traded: 3.57 crore)
were among the most traded stocks in the session.
Podcast: How the market is looking on technical charts?Options data indicated an immediate
trading range between 8,500 and 9,500 levels
India VIX moved up 4% to 45.20 level
The VIX is rebounding from the support of its previous swing highs and the 61.80% retracement level of the entire rise.
Stocks seeing buying
interestLaurus Labs, Ruchi Soya Industries, Dr
Reddy's Laboratories, Divi's Laboratories and Sun Pharma witnessed strong buying interest from market participants as they scaled their
fresh 52-week highs on Tuesday signalling bullish sentiment
Stocks seeing selling pressureSpandana Sphoorty Financial, Aditya Birla Fashion and GE Power India witnessed strong selling pressure in
bearish signs on the counters of Sakthi Sugars and Beardsell
Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.