It was a terrific Tuesday for D-Street as Sensex rallied by nearly 500 points while Nifty50 reclaimed 11,300, registering a fresh 6-month closing high.
Fireworks were seen in the banking space as NiftyBank hit a fresh record high of 28,488 led by gains in IndusInd Bank, ICICI Bank, HDFC Bank, Kotak Bank and Axis Bank.
The rally was broad-based across all sectors barring IT which closed mildly in the red weighed by a rise in rupee against the USD. The rupee gained strength, past 70 per dollar, thanks to the increase in foreign inflows and drop in yield.
All the other sectoral indices witnessed healthy buying and ended in green. Telecom, Realty, and Capital Goods were the top gainers in the range of 2.2-2.6 percent.
In terms of specific stocks, many big large-cap names hit their fresh 52-week high which is a bullish sign. Stocks which hit a fresh 52-week high on the BSE include names like Bajaj Holdings, Divi’s Laboratories, Bata India, RIL, Titan Company, Ipca Labs, UPL, Havells India, Axis Bank, ICICI Bank etc. among others.
Amongst the broader market indices, the BSE Mid-cap ended with 0.7 percent gains while the BSE Small-cap closed in-line with the benchmark.
The market has been moving in one direction and that is up so far in March. The S&P BSE Sensex has already rallied 1668 points while Nifty surged 509 points in the same period.
The next big question is where should investors put their money? Well, experts suggest that momentum is likely to continue in stocks which have been hitting 52-week highs.
“The way breakout happened in the index we expect action in HDFC Bank, RIL, IndusInd Bank, as well as ICICI Bank. These are my top Nifty50 names where a clear strong trend can be seen. The near term target for HDFC Bank is Rs 2240-2260, for RIL we see a target of Rs 1360-1400. For IndusInd Bank, we see a target of Rs 1680-1700,” Ashish Chaturmohta, Head of Technical and Derivatives at Sanctum Wealth Management told Moneycontrol.
“In the Mid-cap space, we see a strong trend in Voltas and we see a 7-8% kind of uptick. One interesting trend which we have tracking is in hotel space. Indian Hotels can deliver strong performance. It has already given a massive breakout and we expect 18-20% kind of uptick from current levels,” he said.
Stocks in news
KEC International shares rallied 6 percent after the company received orders worth Rs 1,323 crore across its various segments.
Shares of Sharon Bio Medicine up 5 percent after the withdrawal of closure notice by MPCB.
Deep Industries gained more than 15 percent after the company received a contract from ONGC.
Shares of Bharti Airtel surged 5 percent after a news report said the company will slash its stake in Bharti Infratel.
HDFC Life Insurance Company shares tanked more than 4 percent as the offer for sale by joint venture partner opened for subscription on Tuesday.
European markets are trading flat on Tuesday ahead of crucial Brexit vote in the UK Parliament.
Asian markets ended higher as US stocks jumped on Monday breaking the five-day losing streak. Nikkei added 1.79 percent to close at 21,503.6 and Shanghai Composite gained 1.1 percent to close at 3,060.31.
Hang Seng index rose 1.46 percent to end at 28920.87. Kospi jumped 0.89 percent to close at 2,157.18.
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