Market closes flat! Nifty above 11,200; mid small-caps shine

Indian markets rose for the fourth consecutive day on August 7 but ended flat, with the Nifty staying above the crucial 11,200-mark and small & midcap stocks generating interest.

The S&P BSE Sensex rose 15 points to close at 38,040 while the Nifty50 ended 13 points higher at 11,214.

For the week ended August 7, the Nifty rose 1.2 percent while the Sensex closed with gains of 1.1 percent.

“Friday’s price action was characterised by robust activity in select high-quality midcaps as well as smallcaps as a lower interest rate cycle benefits many such stocks,” S Ranganathan, Head of Research at LKP Securities told Moneycontrol.

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Sugar sector and stocks with a rural focus like roofing and seeds saw heightened activity, he said.

Sectorally, action was seen in power, telecom, utilities, industrials and auto index. Some profit-taking was seen in consumer durables, IT, healthcare and realty.

The broader markets outperformed the benchmark indices. The S&P BSE Midcap index rose 1.4 percent and the S&P BSE Smallcap index that was up 0.78 percent.

Top Nifty gainers included IndusInd Bank, UPL, Bajaj Finance and Asian Paints.

Top Nifty losers included Infosys, HCL Technologies, and Titan Company.

Stocks & Sectors

Sectorally, the S&P BSE Power index rose 1.2 percent followed by the S&P BSE Telecom index that was up 1 percent and the S&P BSE Utilities gained 0.9 percent.

Selling pressure was seen in the consumer durables index that was down 1.7 percent. The S&P BSE IT index fell 1.1 percent and the S&P BSE Healthcare index closed 0.3 percent lower.

A volume spike of more than 100 percent was seen in M&M, RBL Bank, Berger Paints and Torrent Power.

Long buildup was seen in stocks like Torrent Power, RBL Bank and Century Textiles.

Short buildup was seen in stocks like Titan Company, MGL and Bata India.

Wabco India, Bayer Cropscience, Dr Reddy’s, Divi’s Laboratories and Alkem Laboratories were among 200 stocks on the BSE to hit a 52-week high.

Stocks in news

M&M slipped on below expectation earnings, with auto business reporting EBIT loss.

Bharti Airtel, Bharti Infratel and Voda Idea closed higher ahead of AGR hearing in the Supreme Court on August 10.

Bajaj Fin & Bajaj Finserv closed with gains of 4 percent and 3 percent,  respectively.

MGL closed 1.5 percent lower after reporting a decline of 73 percent in profit sequentially.

Lupin fell more than 6 percent a day after the pharma company reported a nearly 60 percent year-on-year (YoY) decline in Q1 FY21 net profit.

Deepak Nitrite stock price was down 5 percent after the company reported a quarterly net profit of Rs 63.61 crore in June 2020, down 40.71 percent from Rs 107.28 crore in June 2019.

Adani Transmission stock price rose over 9 percent after Q1FY21 net profit jumped 66.5 percent YoY to Rs 355.4 crore against Rs 213.4 crore in Q1FY20.

Technical View

The Nifty formed a small bullish candle. The index took support near 5-day EMA.

The index opened flat but remained consolidative for the most part of the trading session with buy on decline strategy.

It formed a small bullish candle but an Inside Bar as it traded inside the trading range of the last session.

“The index has got stuck in range but forming higher lows and supports are slightly shifting higher from the last three trading sessions,” Chandan Taparia of Motilal Oswal Financial Services Limited.

“Now, it has to continue to hold above 11,150 zones to witness an upmove towards recent swing high of 11,333-11,350 then 11,500 zones while on the downside, support exists at 11,100 then 110,50 zones,” he said.

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