Rs 20 lakh cr booster shot helps Sensex climb 32K; Nifty closes below 9,400

The S&P BSE Sensex climbed Mount 32K and the Nifty50 closed just a shade below 9,400 on May 13, riding high on the Rs 20-lakh crore stimulus package announced by Prime Minister Narendra Modi on the evening before.

The bulls, however, failed to keep the momentum going. The Nifty50, which started with a gap on the upside, failed to hold the gain towards the close of the trade and ended near its intraday low, which suggests selling pressure at higher levels.

The final tally on D-Street: the Sensex rose 637 points to close at 32,008 while the Nifty50 ended 187 points higher at 9,383.

“After the stimulus package was announced yesterday, which accounts for around 10 percent of the GDP, markets shot up by around 3 percent before paring some gains by the end of trade. The details are awaited regarding the math and allocation of the announced package and how much will be the fresh stimulus,” said Vinod Nair, Head of Research, Geojit Financial Services.

“If the details match the headline announcements, then this would significantly help allay fears surrounding the economy and businesses and its recovery path,” he said.

Globally, markets were weak, fearing resurgence in virus infections and conflicting opinions on opening up of economies, while number of new infections continued to be a worry for India as well, he said

Sectorally, the action was seen in capital goods, banks, realty, public sector, finance, and power stocks while profit-taking was visible in healthcare, FMCG, and telecom names.

On the broader market front, the S&P BSE Midcap index rose 1.5 percent while the S&P BSE Smallcap index was up 2 percent.

Top Nifty gainers included ICICI Bank, M&M, Adani Ports, UltraTech Cements, L&T, Axis Bank and ZEE Entertainment.

Top Nifty losers included HUL, Sun Pharma, Bharti Airtel and Britannia Industries.

Stocks & Sectors

Sectorally, the S&P BSE Capital Goods index rose 5.08 percent, followed by the S&P BSE Bankex that was up 3.8 percent and the S&P BSE Realty index rose 3.5 percent.

Profit-taking was seen in the S&P BSE Healthcare Index, followed by the S&P BSE FMCG and the S&P BSE Telecom index.

A volume spike of more than 100 percent was seen in stocks like Adani Power, Tata Chemicals, Ambuja Cements, ACC, REC, Godrej Properties and BHEL.

Long Buildup was seen in stocks like Godrej Properties, Voltas, SBI Life, Escorts, NCC, Shriram Transport, and ZEE Entertainment.

More than 40 stocks hit 52-week high. These include Ruchi Soya, Bharti Airtel, IOL Chemicals and Titan Biotech.

Stocks in news

Nestle India declined 5 percent despite reporting better than expected earnings.

Kotak Mahindra Bank was up 3 percent after reporting operationally strong earnings.

Maruti Suzuki slipped from highs after lower-than-expected Q4 earnings.

Jubilant Life advanced 5 percent reaching after an agreement with Gilead for a COVID-19 drug.

Premier Explosives share price was locked in 5 percent upper circuit after the company received a licence to manufacture RDX/RDX compounded products.

Technical View

Consistent selling pressure saw the Nifty50 form a Bearish Belt Hold formation.

If the index Nifty fails to get past 9,585 in the next one or two trading sessions, it will initially slide all the way to the recent lows of 9,043.

A close below 9,240 can be considered as some sort of confirmation for weakness.

“We have had a gap-up opening today but it will not be meaningful unless we trade and keep above 9,600. Until then, the bias continues on the sell- side. A good risk/reward trade is still on the anvil,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

“Traders might like to attempt a short here with 8,750-8,800 targets and a 9,600 stoploss where they will also reverse their trades on the long side,” he said.

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