D-St rallies for 5th consecutive day; financials lead the charge

Indian market started on a muted note but closed in the green for the fifth consecutive day in a row on July 7. The S&P BSE rallied nearly 200 points while the Nifty50 closed just a shade below 10,800 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 187 points to 36,674 while the Nifty50 closed with gains of 36 points to 10,799.

Sectorally, the action was seen in IT, Banks, Finance, and consumer discretionary stocks while profit-taking was seen in oil & gas, metals, energy, telecom, and public sector. The NiftyBank closed nearly 2 percent higher at 22,628.

Banking stocks led the rally from the front as a concern of moratorium was overhyped. The rally was led by gains in ICICI Bank, IndusInd Bank, Bandhan Bank, and RBL Bank, etc. among others.

‘Strong buying interest in financial stocks led today’s market rally as traders have now started realising that the concern of moratorium was overhyped. Apart from financial stocks, select private sector banks, metals, and auto stocks witnessed a sharp rise in buying interest by FPI on Tuesday,” Rahul Sharma, Market Strategist & Research Head, Equity99 Advisors told Moneycontrol.

“The overall mood of the markets remains positive led by hopes of a Covid-19 vaccine, improving macroeconomic conditions and improvement in manufacturing activities and car sales, indicating early signs of normalcy. We believe Nifty to holds above 10,821 and then move up to 10,950-11050 in the coming days,” he said.

On the broader markets front – the S&P BSE Mid-cap index rose 0.58 percent while the S&P BSE Small-cap index rose 0.57 percent – in line with benchmark indices.

Top Nifty gainers include names like Infosys, Bajaj Finserv, IndusInd Bank, and Bajaj Finance.

Top Nifty losers include names like Power Grid, ITC, NTPC, and Aani Ports.

Stocks & Sectors:

Sectorally, the S&P BSE IT index rose 2.1 percent, followed by the S&P BSE Finance index which was up 1.7 percent, and the S&P BSE Consumer Discretionary index gained 0.57 percent.

Profit-taking was seen in stocks like BSE Oil & Gas index that fell 2.4 percent, followed by the S&P BSE Utilities that was down 2.2 percent, and the S&P BSE Metal index fell 1.7 percent.

Volume spike of more than 100% was seen in stocks like Bandhan Bank, Dabur India, IGL, Equitas, and NIIT Technologies.

Long Buildup was seen in stocks like Tata Chemicals, Equitas, and Shriram Transport.

Short Buildup was seen in stocks like IGL, Muthoot Finance, and Balkrishna Industries.

More than 100 stocks on the BSE hit a fresh 52-week high that includes names like TCS, RIL, Navin Fluorine, and Aarti Drugs.

Stocks in news:

Camlin Fine Sciences share price gained over 4 percent after Infinity Holdings acquired half a percent equity stake in the company via open market transactions.

Shriram Transport Finance Company stock was up over 3 percent after the company fixed its rights issue price at Rs 570 per share, an 18.3 percent discount to the previous day’s closing price.

Suzlon Energy stock price was down 4 percent after the company reported losses in the quarter ended March 2020.

Bandhan Bank shares were up 10 percent after the private lender reported a deposit growth of 6 percent on a quarter-on-quarter basis to Rs 60,602 crore as on June 30.

Gujarat Pipavav Port stock jumped 6 percent after the company remained operational during lockdown period.

Bajaj Finance stock jumped over 7 percent a day after the company disclosed its June quarter performance. The company said it may consider additional accelerated provisioning for COVID-19 in Q1FY21 as well to further strengthen its balance sheet.

Technical View:

Nifty formed an indecisive formation on the charts | It looks like Nifty awaits a breakout or a breakdown

A close above 10886 could take the index towards 11250 levels

On the down sides a close below 10690 shall confirm weakness there by triggering a fresh leg of a downswing with initial targets placed around 10500 levels.

“Traders are advised to buy only on a close above 10900 levels where as shorting can be considered on a strong weakness below 10689 levels,” Mazhar Mohammad of Chartviewindia.in.