Today Indian indices started with a negative bias and now slowing moving to the positive territory. Overnight US markets – Dow Jones and Nasdaq closed in deep red due to the increasing spread of corona virus covid-19 and a negative outlook of world economy by IMF.
In the morning trade Gail, Hero Motors, Itc, Upl, Bajaj auto, Vedanta, Indusind bank and grasim are trading in green with more than 1% gains. Stocks like Infratel, Infy, Eicher motors, Hdfc bank, Hcl technologies and Dr reddy are trading in red with more than 1% loss.
In volume front only Gail is in positive territory with 34% extra volume. This volume gain is calculated in minute by minute basis. ie. current volume till 10:36am vs average 2 months volume till 10:36am for that particular stock. Other stocks which are showing a small trend in volume front are Itc, Hero motors, Bajaj auto, Ntpc and Ioc.
In the Buy vs Sell bids section Gail, Bajaj finance, Sbi, Hero motors, Infosys and ultratech cements attract more buy orders – more than 10% than respective sell orders. Stocks like Kotak bank,m Hdfc bank, Eicher motors, Hdfc, Reliance, Ongc, Icici bnak and cipla is with more sell orders – more than 30%. Since more sell bids than buy bids overall still a negativity persists in markets. So if there is not much positive news by Europe market opening today also we can expect a sell of in the afternoon like yesterday.
Buy many stocks recovered a lot in the first hour trading itself and it is a positive sign. Indusind bank ,hero motors, gail, zeel, bajaj finance, upl, tata motors, icici bank, ioc and bajaj auto recovered more than 3% from their respective day’s low value.
Overall Indian and world markets are lacking direction. Most world markets recovered smartly from their respective March month crash but the problems which lead to the crash still persists and in fact in more severe now especially in India. So moving up from this level is difficult and even sustaining at current level also not easy as we have run too much in short period of time irrespective of the current reality. Corona virus numbers are increasing in India every day and market seems ignoring it. Hopefully the corona issue will subside in the coming weeks. I think market also expecting that. That is why it is not reacting to the current increase in number of corona cases.