Market recovers most previous day losses amid positive global cues

Indian market closed with wholesome gains on September 26, mirroring the trend in other major markets in the world.

Investor sentiment got a fillip after positive comments from China on a trade deal with the United States. As per Reuters, the Chinese commerce ministry said Beijing is in close communication with Washington and is preparing to progress trade talks in October.

Softer crude oil prices and stronger rupee also influenced the mood.

“Markets regained momentum and surged over a percent on the F&O expiry day. Fall in the crude oil prices combined with firm global cues helped the index to make a strong start which further strengthened with noticeable buying interest in index majors from across the board,” said Ajit Mishra, Vice President- Research at Religare Broking.

“We reiterate our bullish view on the Nifty and advice continuing with ‘buy on dips’ approach. Nifty has the potential to test 11,700-11,800 in the near future, so any intermediate dip should be considered as a buying opportunity. We still see limited participation so suggest caution while choosing stocks,” Mishra added.

The Sensex index closed 396 points, or 1.03 percent, higher at 38,989.74, with 23 stocks in the green and 7 in the red.

Vedanta, Mahindra & Mahindra, ONGC, ICICI Bank and Tata Steel ended as the top gainers in the Sensex index, while Yes Bank, Infosys, Hindustan Unilever, HCL Technologies and HDFC finished as the top losers in the index, in that order.

The Nifty index logged a gain of 131 points, or 1.15 percent, settling at 11,571.20, with 41 stocks up and 9 down.

BSE Midcap and Smallcap indices underperformed benchmark Sensex, finishing with gains of 0.92 percent and 0.42 percent, respectively.

Among the sectoral indices on the BSE, only IT (down 0.55 percent) and Teck (down 0.26 percent) fell as the rupee strengthened against the US dollar.

BSE Metal index, with a gain of 4.20 percent, closed as the top gainer, followed by Realty (2.69 percent) and Oil & Gas (2.53 percent).

The overall market capitalisation of BSE-listed firms jumped to Rs 1,48,45,854.70 crore from Rs 1,46,88,763.39 crore on September 25, making investors richer by Rs 1.57 lakh crore in a single day.

Top news of the day:

The National Company Law Appellate Tribunal (NCLAT) has allowed the Dutch court administrator of Jet Airways to attend the Committee of Creditors (CoC) meetings of the debt-ridden carrier, reported PTI.

The government will make a decision on raising the income tax exemption limit at an appropriate time, Minister of State for Finance Anurag Singh Thakur said today.

The government has approved the construction of 1.23 lakh houses under the Pradhan Mantri Awas Yojana (Urban), taking the total number of houses sanctioned under the scheme to over 90 lakh, PTI reported.

Japan’s central bank governor signaled on Thursday readiness to ease monetary policy further, vowing to guide policy appropriately “without any preset conditions in mind”, reported Reuters.

The Managing Director of Punjab & Maharashtra Cooperative Bank (PMC), Joy Thomas, was suspended. The RBI has raised the withdrawal limit to Rs 10,000 from Rs 1,000 for PMC bank account holders.

Stocks in news:

Extending their losses into the second consecutive session, shares of Yes Bank declined 4.93 percent to Rs 51.05 on BSE. CNBC TV18 reported that a promoter released pledge on 2.75 percent equity on September 18.

Shares of Dewan Housing Finance Corporation (DHFL) fell 8.93 percent to Rs 42.85, a day after Catalyst Trusteeship, the debenture trustee, said DHFL defaulted in payment of interest and principal due on September 20 in respect of non-convertible debentures (NCDs) of private placement bearing.

Shares of Zee Entertainment Enterprises jumped 5.44 percent to Rs 286.70 after research house CLSA maintained a buy rating on the stock. The brokerage is positive on the scrip due to growing business and compelling valuation.

Shares of Larsen & Toubro gained 2.77 percent to settle at Rs 1490.20 after global research firm Credit Suisse maintained its outperform rating on the stock with a target at Rs 1,750 per share.

Shares of Dilip Buildcon (DBL) climbed 2.03 percent to end at Rs 448.35 after the company said it has emerged as L-1 bidder (lowest bidder) for a project in Madhya Pradesh.

Shares of DIL gained 3.06 percent to settle at Rs 940 after the National Company Law Tribunal (NCLT) approved the scheme of amalgamation of Fermenta Biotech with DIL and their respective shareholders.

Shares of Vedanta closed with a healthy gain of 6.47 percent at Rs 166.15 after reports emerged that the government looks for selling residual stake in Hindustan Zinc.

Global update:

European shares moved higher on Thursday, with technology shares leading the charge after encouraging comments from China on trade with the United States soothed sentiment that was rattled by growth worries and political turmoil, reported Reuters.

Asian stocks ended higher as hopes the United States and China may soon end their year-long trade war boosted demand for riskier assets while worries about a US presidential impeachment bid ebbed.

Technical view on the market:

Nifty ended September series with a gain of nearly 6 percent, forming a bullish candle after forming red candles in the last three consecutive expiries, which indicates that bulls are trying to take charge from the lower end.

“For the coming expiry, highest open interest (OI) concentration is placed at 11,000 PE, followed by 11,500 PE. On the higher side, the highest OI is placed at 12,000 CE, followed by 11,700 CE. The immediate range for coming series is 11,500-11,700 zone and overall range for October series is 11,000- 12,000 zone as per derivative data,” said Rohit Singre, Senior Technical Analyst at LKP Securities.Get access to India’s fastest growing financial subscriptions service Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the website or mobile app.