NEW DELHI: Stock bulls lifted the domestic equity indices even higher on Monday riding on some solid March quarter earnings and hopes of recovery, in contrast with the health concerns as India reported a record over 40,000 new cases in a day.
Sensex jumped about 400 points to end a fourth consecutive session close in the green, while its NSE peer Nifty reclaimed the 11,000 mark after over four months. IT, bank and financial services stocks were in big demand.
Nifty continued its momentum and closed above the 11,000 mark despite a major spike in virus infections. The earnings declared so far have been positive, as sectoral leaders, especially in the IT and banking sectors have put up a better-than-expected show for a quarter that was thought to be a washout,” said Vinod Nair, Head of Research at Geojit Financial Services.
Here is a lowdown on what happened in Friday’s session:
Telcos gain despite SC snub
Shares of telecom companies gained despite the Supreme Court suggesting it was not willing to relent on the AGR issue. Bharti Airtel advanced 1.48 per cent to Rs 575.75 while its rival Vodafone Idea, which said its entire net-worth has been destroyed in the last 15 years, creeped up 1.8 per cent to Rs 9.04.
IT index extends rally
Nifty IT index, riding on a superior earnings performance by IT companies, gained for the fourth straight session. It has gained about 5 per cent in last four sessions. The index added 2.6 per cent, thanks to up to 6 per cent gains in Info Edge, Wipro, Infosys and Tech Mahindra.
Pharma index snaps 8-day winning streak
Nifty Pharma index snapped an eight-day winning streak as its constituent stocks saw profit booking. The index dipped 1.6 per cent dragged by up to 4 per cent cuts in shares of Sun Pharma, Lupin, Cipla, Aurobindo Pharma and Cadila Healthcare.
Insider trading: ZEE, GKB Ophthalmics
Pledges on over 18 lakh shares of Zee Entertainment were invoked following which the stock fell 1.68 per cent to Rs 154.75. On the other hand, Krisha Gopal Gupta & Sons, promoters of GKB Ophthalmics bought 200 shares of the company. The stock prices rose 3.32 per cent to Rs 67 following the transaction.
Stocks at 52-week highs
With sustained rally, the number of stocks hitting 52-week high levels also rose. They included APL, Britannia, Cadila Healthcare, Dhanuka Agritech, Coromandel International, Dixon Tech, Granules India, Infibeam Avenues, Jubilant Life Sciences and MCX, among others.
Stocks that hit upper circuits
Nearly 400 stocks hit their daily upper circuit limits on BSE. They included General Insurance, Hathway Cable, Tata Communication, Va Tech Wabag, Quess Corps, AU SFB, IDBI Bank, Omaxe and Edelweiss Financials, among others.
Stocks that gave ‘buy’ signals
As many as 66 stocks flashed ‘buy’ signals as the price crossed above the signal line of MACD indicator. They included Marksans Pharma, HPCL, PTC India, NMDC, Muthoot Finance, JM Financial, Voltas, VIP Industries, Thomas Cook and Bajaj Electricals and Hero Moto, among others.
Where is Nifty headed?
Nifty opened with a gap up and scaled the 11,000 mark on a closing basis. The index formed a small bullish flag pattern on the intraday chart and broke out on the upside towards the end of the session. “Going ahead, the 20-month moving average i.e. 11,090, will be a key hurdle to watch out for. Overall, the Nifty is set to test its weekly upper Bollinger Band, which is near 11,280. On the flip side, 10,950-10,930 will act as a near term support zone for any minor degree dip,” said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
Source: ET Markets