NEW DELHI: A spectacular rally in some of the blue chip heavyweights pushed the benchmark equity indices to a three-month high on Friday, even as India reported its highest ever single day jump in Covid-19 cases.
Reliance Industries single-handedly contributed more than half of the over 500-point jump in the 30-share Sensex and Nifty’s 150-point rally. Realty stocks DLF, Godrej Properties and Phoenix surged up to 10 per cent.
Despite the secular rally in last two days, analysts advised investors to stay cautious. Vinod Nair of Geojit Financial Services said geopolitical tensions may increase volatility in the market and investors should be watchful.
Here is a lowdown on what happened in Friday’s session:
RIL at record highs
As Reliance Industries Chairman Mukesh Ambani declared his firm net debt free, shares of the company smashed many records. They hit a record high and in the process made RIL the first company to cross the $150 billion or Rs 11 lakh crore mark in market capitalization. The stock jumped 6.23 per cent to Rs 1,759.
TaMo shrugs off downgrade
Shares of Tata Motors jumped 6.28 per cent to Rs 102.45 as investors shrugged off a Moody’s downgrade on hopes that recovery in sales would be a growth driver for the company going ahead.
Nifty above 100-DMA
Nifty finally crossed above the crucial resistance of 100-day moving average (DMA) placed at 10,100 level. The index had come closer to this level on June 8, but closed below it. The index closed at 10,244 on Friday.
VIX drops another 5%
India VIX, also known as the fear gauge of the market, dropped over 5 per cent for the second day on the trot. The volatility barometer slipped 5.32 per cent to 29.78 level, signalling that traders are expecting a relatively less volatile movement in indices going ahead.
Insider trading: Apollo Tyres, Apollo Pipes
Promoters of Apollo Tyres bought nearly 6.65 lakh shares of the company following which the stock climbed 2.69 per cent to Rs 108.90. Similarly, a promoter of Apollo Pipes acquired 1 lakh shares of the company but the stock dipped 1.52 per cent to Rs 324.60.
Stocks @52-week highs
More and more stocks are hitting their 12-month high levels. On Friday, nearly 120 stocks kissed this mark on BSE. They included Adani Green Energy, APL, ITI, Dixon Tech, Network18, Reliance Industries and Muthoot Finance, among others.
Stocks that gave ‘buy’ signals
As many as 90 stocks crossed above the signal line of the MACD indicator to flash ‘buy’ signals. They included GMR Infra, DLF, Jai Corp, Suven Life Sciences, ABB India, Rail Vikas Nigam, Himadri Speciality and Piramal Enterprises, among others.
Where is Nifty headed?
Nifty broke out from an Inside Bar pattern on the daily chart. The weekly chart showed the index recovered sharply during the week gone by after a steep drop in the previous week. “The index is now a stone’s throw away from its swing high of 10,328. Overall, the Nifty is expected to head towards 10,550 i.e. 61.8 per cent retracement of the Jan-March fall. On the flip side, 10,155-10,135 will act as an immediate support zone,” said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
Source: ET Markets