Historic day on D-St! Here#39;s what is driving the rally

Bulls pushed the S&P BSE Sensex to a fresh record high of 40,816 on November 20 while the Nifty50 had a touch-and-go moment with 12,000 levels.

Selling pressure was seen at higher levels as investors preferred to book profits near 12,000 on the Nifty50.

The final tally on D-Street – the S&P BSE Sensex rose 181 points to 40,651 while the Nifty50 closed 59 points higher at 11,999 on Wednesday.

Sectorally, the action was seen in energy, healthcare, oil & gas, and capital goods index while profit-taking was seen in realty, consumer durables, telecom and power stocks.

In the broader market space – the S&P BSE Midcap index rose 0.25 percent while the S&P BSE Smallcap index closed with gains of 0.07 percent.

No major negative surprises from Q2 results, divestment buzz and fierce rally in RIL which is now closer to hitting Rs 10 lakh crore mark in terms of market capitalisation, highest among the BSE-listed companies drove much of the gains.

“Market traded higher ahead of the cabinet meeting due today to discuss on divestment and continued strong buying in index heavyweights lead by pharma and banking stocks,” Vinod Nair, Head of Research, Geojit Financial Services Ltd.

“Fresh worries surfaced over US-China trade tensions but domestic market maintained positive momentum. Government’s plan to divest PSU stake to help maintain the fiscal deficit target in check,” he said.

Market breadth was a tad in the negative but nothing alarming. The overall structure remains positive and the rally is getting broad-based, and it is just a matter of time when the Nifty50 also starts trading in the unchartered territory.

“We continue to remain overall positive on the index and believe the index is poised to hit fresh all-time highs above 12,100 zone,” Amit Shah, Technical Research Analyst with Indiabulls Ventures Ltd told .

As many as 50 stocks hit a fresh 52-week high on the BSE which include names like Bharti Airtel, RIL, BPCL, Divi’s Laboratories, DLF, Sanofi, VST Industries, etc. among others.

Nifty gainers: IndusInd Bank, Sun Pharma, and ZEE Entertainment rose 5-7 percent respectively

Nifty losers: Kotak Bank, IOC, and Bharti Infratel dropped 1-4 percent respectively

Stocks & Sectors:

Sectorally, the S&P BSE Energy index rose 2.1 percent followed by the S&P BSE Healthcare index which rose 2.01 percent, and the Oil & Gas index was up 1.4 percent.

Profit-taking was seen in sectors like Realty index which fell 1.3 percent followed by the Consumer Durable index which was down 0.58 percent, and the Power Index which fell 0.29 percent.

Volumen spike of 200-400 percent was seen in stocks like Biocon, Dr Reddy’s, OIL, BPCL, Torrent Pharma, and Sun Pharma.

Long Buildup – Dish Tv, Container Corp, HPCL, Shree Cement

Short Buildup – Torrent Pharma, IOC, TCS, CESC, HUL

Stocks in news:

Reliance Industries: Reliance Industries share price touched fresh record high of Rs 1,571, ending over 2 percent higher on November 20 after foreign broking house Credit Suisse raise the target price. Credit Suisse has maintained a neutral rating on Reliance Industries, while raised the target price.

UCO Bank: UCO Bank share price zoomed 20 percent on November 20 after it said that the Supreme Court’s ‘landmark’ judgment on the supremacy of financial lenders above operational creditors will help bleeding banks recover thousands of crore rupees from defaulting companies in the coming quarters.

J Kumar Infraprojects: J Kumar Infraprojects share price gained 3 percent on November 20 after company promoters acquired an additional stake in the company.

Reliance Capital shares were locked in a 5 percent lower circuit on November 20 after the company delayed payment of interest on non-convertible debentures.

Technical View:

Nifty closed a shade below 12,000 levels. It formed a Doji kind of pattern on the daily charts which suggest indecisiveness among the bulls as well as the bears

This is the second time when Nifty50 witnessed selling pressure around 12040. The last time when Nifty50 touched 12,034 was on 8 November and since then it witnessed profit taking which took the index towards a low of 11800 before bouncing back.

Three levels to watch on Thursday would be 11,966, 12034, 12103

Max Call OI: 12000, 12200

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