March 18th 2024 Stock Market analysis

‍Taking Stock: Sensex up 105 points, Nifty at 22,050 led by auto, metals

The benchmark indices closed positively on March 18, recovering from previous losses, with the Nifty hovering around 22,050, buoyed by broad-based buying across sectors except for IT and FMCG. Despite an initial negative trend, the market traded within a range during the first half, witnessing some selling in the mid-session. However, it rebounded in the second half, erasing earlier losses to conclude with moderate gains. The Sensex ended up by 104.99 points or 0.14 % at 72,748.42, while the Nifty gained 32.40 points or 0.15 % to reach 22,055.70. Notable gainers on the Nifty included Tata Steel, M&M, JSW Steel, Tata Motors, and Apollo Hospitals, while losers encompassed Tata Consumer Products, UPL, Infosys, Adani Ports, and Titan Company. Key sectors such as capital goods, healthcare, auto, realty, metal, and media experienced gains of 0.5-3 %, whereas IT and FMCG sectors witnessed declines of 0.5-1.5 %. The BSE Midcap and Smallcap indices closed flat. Volume spikes of over 100 percent were observed in Coforge, Balrampur Chini Mills, and PI Industries, while Tata Steel, Jindal Steel, and M&M saw long build-ups, and Coforge, Birlasoft, and Persistent Systems witnessed short build-ups.

‍Technical Outlook on 19th March

Nifty may expect an immediate support near 21952 then 21849 and resistances are 22159 then 22262. Now the nifty is looking at a volatility trade.

Bank Nifty may expect an immediate support near 46217 then 45839 and resistances are  46933 then 47291. Now the bank nifty is looking at a volatility trade.

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Derivative Outlook on 19th March

PCR Analysis: Nifty PCR-OI has decreased with nifty has positive which shows CALL BUYING.

Open Interest Analysis: Nifty future March contract OI has increased with flat positive close which shows Long Buildup.

Cost of Carry Analysis: Nifty MARCH month contract has ended in high compare with APR contract and low range compare with previous session which indicates a mixed trade.

India VIX Analysis: India VIX has closed at 13.90 vs 13.69 (DoD) basis which shows increase in volatility.

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Tata Steel Soars Over 4% on Surging Volumes, Fueled by China's Industrial Output Growth and Metal Sector Uplift

Tata Steel's share price surged nearly 5 percent on March 18th amidst substantial trading volumes and numerous significant transactions, driven by the robust growth in China's industrial output. By 12:20 pm, Tata Steel stock stood at Rs 148.6, marking a 4.9 percent increase from the previous day's close. Trading activity saw almost 10 crore shares of Tata Steel exchanged hands, more than double the average of the previous month. Notably, 2.3 crore shares were traded in large blocks. Over the past year, the share price has surged by nearly 40 percent.

The industry anticipates potential restrictions on steel imports following a six-year high in the first 10 months of the fiscal year, largely due to Chinese shipments, as per provisional government data revealed on March 2nd. India, as indicated by the data, has become a net importer of finished steel. Strong steel demand persists in India, with the country remaining a beacon of growth globally, driven by robust demand from its construction and automotive sectors.

China, the world's leading steel producer, exported 1.75 million metric tons of finished steel to India in the first 10 months of the fiscal year, marking a six-year high and an 80 percent increase from the same period last year. In September, India imposed a five-year anti-dumping duty targeting specific types of Chinese steel, a measure taken when a domestic government believes imports are being sold below fair market value.