March 27th 2024 Stock Market analysis

Market Recap: Bulls Rally as Nifty Surpasses 22,100 and Sensex Surges by 526 Points

The market rebounded today, erasing previous session losses, buoyed by strong buying in heavyweights and sectors such as auto, realty, power, and capital goods on March 27th. Closing figures show the Sensex surged by 526.01 points, or 0.73 %, reaching 72,996.31, while the Nifty climbed by 119 points, or 0.54 %, closing at 22,123.70. Despite mixed global cues, the market opened positively and sustained its upward trajectory throughout the day, supported by a narrowed Current Account Deficit (CAD) at $10.5 billion in the third quarter and robust buying in heavyweight stocks. Notable gainers on the Nifty included Reliance Industries, Maruti Suzuki, Bajaj Auto, Bajaj Finance, and Titan Company, while losers comprised Hero MotoCorp, Tata Consumer Products, Apollo Hospitals, Dr. Reddy's Labs, and Wipro. Sector-wise, auto, bank, capital goods, power, realty, and telecom witnessed gains of 0.5-1 percent, while metal, IT, and media experienced declines of 0.3-0.5 percent.

Technical Outlook on 28th March

Nifty is anticipated to find immediate support levels around 22,052 and subsequently at 21,983, with resistances expected at 22,193 and 22,263. Currently, profit booking is anticipated in Nifty from its elevated levels. Similarly, Bank Nifty is expected to encounter immediate support around 46,629 followed by 46,473, while resistances are projected at 46,942 and 47,098. Profit booking is also foreseen in Bank Nifty from its higher levels.

‍Derivative Outlook on 28th March

PCR Analysis: Nifty PCR-OI has increased with nifty has positive which shows PUT WRITING.

Open Interest Analysis: Nifty future March contract OI has decreased with positive close which shows Short Covering.

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 profit booking from higher level.

India VIX Analysis: India VIX has closed at 12.70 vs 12.82 (DoD) basis which shows decrease in volatility.

‍Coal India's Stock Slides Following Closure of Key Coal Shipping Port Due to Baltimore Bridge Collapse

Intraday trading saw shares of Coal India initially making gains on March 27, only to turn downward later in the session. This movement coincided with news of a significant container ship collision with the Baltimore bridge, the second-largest exit point for US coal shipments, causing its closure. The 1.6-mile bridge collapsed following the collision on March 26, US time. Coal India's share price was impacted as the port of Baltimore serves as a crucial hub for shipping thermal coal, a significant portion of which is imported by India for electricity generation. In 2023, India imported 7.27 million tonnes of coal from the US. By market close, Coal India shares had declined by 1.02%, settling at Rs 431.50 per share. Experts anticipate that the blockade at the port could persist for approximately six weeks, resulting in the withholding of 2.5 million tonnes of coal from shipment. This disruption at a critical supply chain node could have far-reaching consequences on the global coal market.