What a day for Indian markets! The benchmark indices that started on a muted note on account of escalating tensions with China and Fitch Rating’s negative outlook on India failed to dent sentiment.
Banking stocks led the rally after the Supreme Court allowed more time to the Department of Telecommunications (DOT) to review the payment proposals by the telecom companies.
The S&P BSE Sensex rallied 700 points to 34,208 while the Nifty50 reclaimed its crucial resistance level of 10,000 and closed 210 points higher at 10,091.
“In spite of negative global cues, Indian indices ended the day positive with steady gains. With the Supreme Court AGR ruling providing a respite to the exposed banks, the relief was visible in the banking stocks, especially those which had exposure to the telecom companies,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The banking index contributed the most to the positivity and almost all components of the index ended the day in positive. The current geopolitical situation and associated comments also gave some support to sectoral movements. Caution is advised.”
Sectorally, the action was visible in banks, finance, metals, public sector, and power sector indices while some profit-taking was visible in healthcare, and telecom stocks.
The broader markets underperformed the benchmark indices. The S&P BSE Midcap index rose 1.05 percent while the S&P BSE Smallcap index closed with gains of 1.4 percent.
Top Nifty gainers included Bajaj Finance, ZEE Entertainment, Coal India, and Bajaj Finserv.
Top Nifty losers included Bharti Airtel, TCS, HUL, and ONGC.
Stocks & Sectors
Sectorally, the S&P BSE Bankex was up 3.8 percent,the S&P BSE Finance index 3.5 percent and the S&P BSE Metal index closed with gains of 3 percent.
Some profit-taking was visible in telecom and healthcare spaces.
A volume spike of more than 100 percent was seen in Vedanta, NIIT Technologies, Ramco Cements, BHEL, Idea Cellular and Muthoot Finance.
Long buildup was seen in stocks like Muthoot Finance, BHEL, Vedanta, Manappuram Finance, HDFC and Chola Finance.
Short buildup was seen in stocks like Cummins India, NMDC and Bata India.
Nearly 100 stocks on the BSE hit a fresh 52-week high. These included Dixon Technologies, RIL, Vaibhav Global, Muthoot Finance, Escorts and Adani Green.
Stocks in news
Muthoot Finance jumped more than 16 percent after the company posted a better-than-expected set of March quarter numbers on June 17.
Coal India stock price jumped over 6 percent after Prime Minister Narendra Modi launched the auction process for 41 coal blocks for commercial mining.
Indraprastha Gas shares fell over 5 percent after the company reported a 27.5 percent jump in its consolidated net profit at Rs 290.76 crore versus Rs 228 crore in the year-ago period.
Stocks of telecom companies gained up to 20 percent after the Supreme Court hearing in the AGR case. ITI and Vindhya Telelink surged almost 20 percent while MTNL, HFCL and Tejas Networks were the other gainers. Shares of Bharti Airtel and Vodafone Idea, however, ended in the red, down over half a percent each.
Pidilite Industries’ stock price was down over 2 percent after the company reported a nearly 34 percent year-on-year (YoY) decline in consolidated net profit to Rs 156.51 crore for the fourth quarter ended March 31.
Manappuram Finance stock price was up over 4 percent after the company approved the issue of NCDs worth Rs 350 crore.
BEML gained over 4 percent after the state-owned entity flagged off its last train set for Kolkata Metro (East-West) Project.
BHEL gains 17 percent to touch four-month high on Anil Agarwal’s positive comment about the company.
The Nifty formed a strong bullish candle on the daily charts.
It found some resistance around 100-DMA placed at 10,112.
As long as the Nifty sustains above 9845 levels, one should retain an optimistic outlook and look for bigger targets, experts say.
The current breakout itself is projecting 300 points with a target towards 10,300 levels. In between, the Nifty needs to get past its 100-day simple moving average, the value of which is placed at around 10112, says Mazhar Mohammad of Chartviewindia.in.
“However, the Nifty shall witness a sustainable upmove only when it manages a close above 10328 levels, which shall open up bigger targets. In that scenario, the bulls shall march towards initial targets of 10,750,” he said.
For the time, positional traders should remain long for an initial target of 10328, with a stop below 9,840 levels as a breach of 9,845 on a closing basis can dissipate the strength in the current upswing.
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