Strong global cues help Sensex reclaims 35,000; IT, oil gas shine

Tracking positive trends in global markets, Indian benchmark indices reclaimed crucial resistance levels to close higher by over a percent for the week ended June 26.

For the day, the S&P BSE Sensex rallied more than 300 points to reclaim 35000 while the Nifty50 was also back above the crucial 10,300.

The Sensex ended the day higher by 329 points at 35,171 while the Nifty50 gained 94 points to close at 10,383.

“The bulls maintained their control today as IT heavyweights rose amidst positive commentary from leading companies. Oil marketing companies, too, witnessed buying interest as the market managed to close the day on the upside,” S Ranganathan, Head of Research at LKP Securities told Moneycontrol.

“Also with a 20 percent excess rainfall, rural themes attracted investor interest in the broader market.”

Sectorally, action was seen in IT, oil & gas, energy, public sector, and capital goods stocks while profit taking was visible in FMCG, realty, healthcare, and auto stocks.

The broader markets underperformed the benchmarks. The S&P BSE Midcap index rose 0.27 percent while the S&P BSE Smallcap index closed with gains of 0.19 percent.

Top Nifty gainers included IOC, TCS, Infosys and BPCL.

Top Nifty losers included Kotak Mahindra Bank, Bharti Infratel, Bajaj Finance and ITC.

Stocks & Sectors

Sectorally, action was seen in the S&P BSE IT index which was up 5 percent, followed by the S&P BSE Oil & Gas index that rose 2.7 percent. The S&P BSE Energy index was down 1.7 percent.

Selling pressure was seen in the S&P BSE Realty index that fell 1.1percent, followed by the S&P BSE FMCG index that was down 1.16 percent. The S&P BSE Healthcare index fell 0.54 percent.

A volume spike of over 100 percent was seen in stocks like JustDial, NIIT Tech, Apollo Hospitals and MindTree.

Long buildup was seen in stocks like Idea, JustDial and MindTree.

Short buildup was visible in Apollo Hospitals, Ashok Leyland and UBL.

Ruchi Soya, Aarti Drugs, IOL Chemicals and Biocon were among more than 100 BSE stocks to hit a 52-week high.

Stocks in news

Camlin Fine Sciences shares were up almost 10 percent after the board gave its nod to raise funds of up to Rs 180 crore.

Indian Overseas Bank stock price jumped almost 10 percent for the second consecutive session following March quarter earnings.

UCO Bank share price surged over 15 percent after the lender reported a net profit at Rs 16.8 crore against a loss of Rs 1,552 crore (YoY).

ITC shares were down over 3 percent ahead of the company’s March quarter earnings. The company is likely to report moderate growth in profit due to lower tax cost but lower volumes in the cigarette business can hit revenue during the quarter.

Oil and gas stocks, including BPCL, HPCL and IOC, gained 4-6 percent as petrol and diesel prices have continued to rise for 20 days.

Prince Pipes stock was up 5 percent after the company reported a 37.8 percent rise in profit to Rs 113 crore in FY20 compared to Rs 82 crore in FY19.

Technical View

The Nifty formed a Doji candle on the daily charts and a spinning top on the weekly charts.

The index starts off the July series on a positive note.

A break above 10,553 (intraday high of June 24) could open up a new target towards 10900 levels, say experts.

A break down below 10,194 will provide a shorting opportunity, with initial targets close to 10k levels, says Mazhar Mohammad of Chartviewindia.in.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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