Over 4-month high! Sensex reclaims 38,000; Nifty back above 11,200

Tracking positive trends in global markets, benchmark indices hit over a four-month high to close above their crucial psychological levels–38, 000 for the Sensex and 11,200 for the Nifty—on July 23.

The S&P BSE Sensex rose 268 points to end at 38,140 while the Nifty50 rallied 82 points to 11, 215.

“The benchmark indices ended the day with gains, following positivity in the global markets. Global markets set aside the rising US-China tensions and focused on potential vaccine developments and better than expected earnings numbers,” Vinod Nair, Head of Research at Geojit Financial Services, told .

Except IT, most major indices ended higher. Liquidity seems to be driving the markets. “Any dip looks like it will be bought into and is likely to be short-lived, especially in the current mood of the markets when the negatives are being overlooked,” he said.

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Sectorally, action was seen in energy, healthcare, realty, and auto index while profit-booking was seen in IT and telecom space.

On the broader market front, the S&P BSE Mid-ap index rose 0.98 percent while the S&P BSE Small-ap index closed with gains of 0.61 percent.

Top Nifty gainers included RIL, ICICI Bank, SBI and Eicher Motors.

Top Nifty losers included HUL, Shree Cements, and Axis Bank.

Stocks & Sectors

Sectorally, the S&P BSE Energy index rose 2.3 percent followed by the S&P BSE Healthcare index that was up 1.6 percent and the S&P BSE Realty index closed with gains of 1.5 percent.

The S&P BSE IT index was down 0.6 percent followed by the S&P BSE Telecom index that fell 0.3 percent.

Volume spike of more than 100% was seen in stocks like BEL, Asian Paints, BPCL and Century Textiles.

Long Buildup was seen in stocks like Apollo Hospitals, Eicher Motors, and RIL.

Short Buildup was seen in stocks like Century Textiles, Shree Cements, and Axis Bank.

Rossari Biotech, Dixon Technologies, RIL, PI Industries and JK Cement were among the 100 stocks on the BSE to hit a fresh 52-week high.

Stocks in News

Dilip Buildcon stock price surged over 11 percent after the company received the letter of acceptance for a Rs 4,167.70-crore EPC project in Gujarat.

Rossari Biotech stock jumped 12 percent on debut with a whopping 57.65 percent premium over its IPO price on July 23.

PNB Housing Finance share jumped 5 percent after the company posted 9.5 percent fall in its YoY consolidated net profit for the June quarter at Rs 257 crore versus Rs 284 crore and revenue was down 16.2 percent at Rs 1,870 crore versus Rs 2,231 crore, reported CNBC-TV18.

Future Retail share price was down 5 percent after the company missed paying $ 14 million (about Rs105 crore) in interest dues on July 22 on its offshore bonds worth $ 500 million due in 2025, which the company had raised in January.

Balaji Telefilms stock jumped 10 percent after the company narrowed losses to Rs 19.84 crore in the fourth quarter ended on March 31, 2020.

Hindustan Zinc share price was up over 4 percent. Brokerage firm Prabhudas Lilladher has an ‘accumulate’ call on the stock with a target price of Rs 200.

Technical View

The Nifty formed a bullish candle on the daily charts. The index seems to be moving in a range and a break above 11,238 will take the Nifty towards 11,400-11,500 levels

The Nifty is likely to remain sideways with negative bias for the next couple of trading sessions.

Traders are advised to remain neutral but intraday traders can consider going long if the Nifty sustains above 11,250 level, say experts.

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