Domestic equity indices snapped the two-day losing streak on Monday and kicked off the new week on a higher note. The positive cues from the global markets and upbeat earnings from the index heavyweights, kept the mood of market on the positive side.
However, majority of the Asian markets remained close on Monday on the account of Lunar New Year. European markets were up during the early trading hours, whereas US stock future traded mildly lower.
For the day, BSE Sensex rose 320 points or 0.53 per cent to 60,941.67, whereas NSE’s Nifty50 Index surged 90.90 points or 0.50 per cent to 18,118.55. BSE’s midcap index rose half a per cent, whereas smallcap index dropped 0.30 per cent during the session. Fear gauge India Vix dropped over a per cent to 13.61-level.
The Nifty traded in a range bound manner; however, the overall structure shows that the index is preparing to start the next leg on the upside. It has started forming higher top higher bottom & once the swing high of 18,184 is crossed then one can initiate a fresh long position, said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
“The daily upper Bollinger Band is set for an expansion, which will create room for the price action on the higher side. In the short term, the Nifty is expected to surpass the key hurdle zone of 18,260-18,300 and head towards 18,500. On the other hand, the level of 18,000 will provide cushion on the downside,” he said.
On sectoral front, only Nifty metal and realty indices disappointed. IT stocks, banks, financials, autos and FMCG counters led the rally for NSE’s barometer on the back of strong Q3 performance and positive outlook.
Sun Pharma, Hindustan Unilever, Eicher Motors, UPL, Tech Mahindra and Bajaj Auto topped among the gainers with a 2 per cent rise each. SBI, Infosys, Apollo Hospitals, Tata Consultancy Services, Divis Labs, Tata Motors, Kotak Mahindra Bank and Coal India added a perc cent each.
UltraTech Cement was the biggest accident among the bluechip peers after muted Q3 performance. The stock was down 4 per cent. Grasim bled 2 per cent, whereas NTPC, Tata Steel, Adani Ports and JSW Steel were down one per cent each.
Market breadth tilted in favour of bulls lifted by financial stocks, amid positive cues from global peers, said Vinod Nair, Head of Research at Geojit Financial Services. “Strong corporate earnings reported by banks boosted appetite for financial stocks. Positive global markets owing to possibility of a less aggressive rate hike, further added colour,” he said.
A total of 3831 stocks that traded for the day on BSE, of which 1,664 settled lower, while 1,976 settled higher. Remaining 191 stocks ended unchanged. A total 291 stocks hit an upper circuit on BSE, whereas 183 stock hit the lower circuit during the trading session.
In the broader markets, Sportking, Manaksia, SVP Gloabl Nureca, Shakti Pump, Dhunseri Ventures surged 11-19 per cent each. Torrent Power, Delhivery, Coforge, CanFin Homes, Bandhan Bank advanced 5-7 per cent each on Monday.
YES Bank plunged 8 per cent to 18.15 on Monday after the Bombay High Court quashed the YES Bank administrator’s March 2020 decision to write-off of additional Tier-1 (AT1) bonds. An 80 per cent drop in December quarter profit due to higher provisioning added to weakness on the counter.
Other losers included, Heritage Foods, Infibeam Avenues, Saregama India and Apar Industries, which also plunged 7-8 per cent each. Meghmani Organics, JSW Energy, Usha Martin, Shree Cement, AGS Transactions Technologies and Rajesh Exports dropped 5-6 per cent each.
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