Nifty holds 11,100 as D-Street snaps 5-day winning streak; Axis Bank up 7%

The D-Street snapped its five-day winning streak as both Sensex and Nifty closed marginally in the red. The Sensex recovered over 250 points from the lows while the Nifty50 bounced back from 11,050 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex was down 58 points to 37,871 while the Nifty50 fell 29 points to 11,132.

Indian market recouped most of the losses towards the close of the trade which suggests buying at lower levels, but experts feel that the volatility is likely to continue.

“Indian indices exhibited volatility and closed in the negative, in sync with negative global cues. The spike in US-Chine tensions hit the global markets while a surge in virus infections globally also impacted sentiment,” Vinod Nair, Head of Research at Geojit Financial Services told .

“Domestically, the private banking space gained on the back of earnings numbers from Axis Bank. However, Auto, IT and PSU Banks led the losses. Volatility is expected to continue due to expiry day tomorrow,” he said.

Sectorally, the action was seen in consumer durables, power, energy, banks, and telecom stocks while the selling pressure was seen in IT, Auto, capital goods, and realty stocks.

On the broader markets front – the S&P BSE Midcap index was up 0.19 percent, while the S&P BSE Smallcap index fell 0.2 percent.

Top Nifty gainers include names like ZEE Entertainment, Titan Company, and Axis Bank.

Top Nifty losers include names like Tata Motors, HUL, BPCL, and Hero MotoCorp.

Stocks & Sectors:

Sectorally, the S&P BSE Consumer Durable index rose 2 percent, followed by the S&P BSE Power Index which was up 1.2 percent, and the S&P BSE Energy index was up nearly 1 percent. The NiftyBank rose 0.4 percent to close at 22,882.

Selling pressure was seen in the S&P BSE IT index which was down 1.4 percent, followed by the S&P BSE Auto index fell 1.4 percent, and the S&P BSE Capital Goods index fell 1 percent.

Volume spike of more than 100% was seen in Titan Company, Tata Power, PVR, Biocon, GMR Infra, and Idea Cellular.

Long Buildup was seen in Idea, GMR Infra, and Chola Finance.

Short Builup was seen in Canara Bank, Wipro, and Kotak Bank.

More than 100 stocks hit a fresh 52-week high on the BSE that include names like Dixon Technologies, L&T Infotech, RIL, JK Cement, and Escorts.

Stocks in news:

Reliance Industries closed at a record high, as the stock closed above Rs 2,000/share for the first time.

Bajaj Auto down nearly 1% after reporting earnings in-line with estimates.

HUL slips 3% despite the company reporting earnings above estimates.

Axis Bank surges over 7% after reporting moratorium of less than 10%.

M&M Financial gains for the 5th straight day after the announcement of the rights issue.

Bajaj Finance fell more than 1% after the company reported a 19 percent YoY drop in PAT to Rs 962 crore. Total income for Q1 FY21 increased 14 percent to Rs 6,650 crore.

IndiaMART InterMESH share price surged 4 percent after the company reported a more than two-fold jump in its Q1 FY21 consolidated profit at Rs 74.1 crore, backed by strong operating performance.

Technical View:

The Nifty formed a bearish candle on the daily charts. It formed a ‘Hanging Man’ kind of candle pattern on the daily chart which is bearish reversal pattern by nature, and any break below 11,050 can lead in more profit booking.

Support for Nifty is coming near 11,050-11,000 mark, any break below said levels can drag down index more and resistance is still placed at 11,200-12240 zone, said Rohit Singre, Senior Technical Analyst at LKP Securities.

The Nifty Bank closed the day at 22,883 with gains of 100 points, support for Nifty Bank is coming near 22,740-22,550 zone and resistance is near 23,000-23,200 zone.


Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.