Indices end mixed as Nifty holds 11,100; metals, auto shine

It was a volatile day for Indian market, but bulls finally managed to push the index back in the green to close above 11,100 levels, but Sensex ended marginally in the red.

Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 24 points to 37,663 while the Nifty50 rose 6 points to close at 11,101.

Profit booking at higher levels, uncertainty regarding MPC decision on Thursday capped the upside for markets.

“Indian benchmark indices were volatile in trade before closing flat with a positive bias. Global cues were also positive while gold again jumped to record highs. Positive earnings reports are driving stocks and markets around the world, and the same trend is visible in the Indian markets too,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“Liquidity is a major driver for the markets and it is chasing companies which are declaring stable earnings or outlook. Uncertainties remain while in the near term markets will look forward to the commentary and RBI actions at the end of the MPC meeting tomorrow,” he said.

Sectorally, the action was seen in the metals, auto, consumer discretionary, consumer durables, and telecom while selling pressure was seen in energy, power, FMCG, IT and healthcare stocks.

On the broader markets front, the S&P BSE Mid-cap index rose 0.39 percent, and the S&P BSE Small-cap index rose 0.8 percent – outperforming benchmark indices.

Top Nifty gainers include names like Adani Ports, Eicher Motors, Tata Steel, and Hindalco Industries.

Top Nifty losers include names like Power Grid, HDFC Life, HDFC Bank, and UPL.

Stocks & Sectors:

Sectorally, the S&P BSE Metal index rose 4 percent, followed by the Auto index gained 1.8 percent, and the S&P BSE Consumer Discretionary was up 1.3 percent.

Selling pressure was seen in the S&P BSE Energy index that was down 0.8 percent, followed by the S&P BSE Power index fell 0.48 percent, and the S&P BSE FMCG index was down 0.2 percent.

Volume spike of more than 100% was seen in stocks like ITC, Sun TV, Hindalco, Bata India, and NALCO etc. among others.

Long Buildup was seen in stocks like MFSL, SAIL, and Hindalco.

Short Buildup was seen in stocks like ITC, Muthoot Finance, and Shriram Transport.

More than 100 stocks on the BSE hit a fresh 52-week high that includes names like Info Edge, Torrent Pharma, L&T Infotech, and PI Industries.

Stocks in news:

Improved China data helped metal stocks gain; Hindalco, Tata Steel were among top Nifty gainers

Autos continue to move higher on-demand recovery; Tata Motors, Eicher were up 4-5% respectively.

Info Edge hits record high after the company launched Rs 1,875 crore QIP

SAIL moves 6% higher after reporting improved volumes in July on a YoY basis

Sun Pharma Advanced Research Company stock price jumped 7 percent after the company reported net profit in Q1 FY21 at Rs 56.69 crore as against a loss of Rs 94.19 crore in the year-ago quarter.

Technical View:

Nifty formed a bearish candle on the daily charts similar to a Spinning Top candle which indicates that follow up is missing even after the recovery

As long as Nifty holds above 11050 zones then buying interest could emerge towards 11250 zones while on the downside support exists at 10900-10880 zones.

India VIX fell down by 1.06% at 23.56 levels. The decline in VIX from its recent bounce of 25.69 suggests that Bulls are using any decline as a buying opportunity and overall trend could remain bullish.

Maximum Put OI is at 11000 followed by 10000 strikes, while maximum Call OI is at 11500 followed by 12000 strike.

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