Bulls push Nifty higher for 6th day; small midcaps under pressure

The bulls were in control again as they pushed the Nifty50 to close above 11,300 on August 11, the sixth straight session of gains for the index, while the S&P BSE Sensex ended the day higher for the fourth time in a row.

Positive global cues including the first coronavirus vaccine getting registered in Russia helped the sentiment in equity markets across the world.

The S&P BSE Sensex ended the day 224 points higher at 38,407 while the Nifty50 closed with gains of 52 points to 11,322.

“Indian markets continued their positive run in spite of intraday volatility and unabated virus infections across the country. It was in sync with positive global cues, on the back of expected stimulus measures from the US, improving economic data points from China and the first coronavirus vaccine getting registered in Russia,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

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Indian markets continued their run on the basis of earnings results and stock-specific news amid hopes of another round of stimulus measures by the government. This expectation should ensure liquidity in the markets in the near term, he said.

Sectorally, action was seen in metals, banks, finance, and oil & gas space, while profit-taking was visible in telecom, healthcare and consumer durables.

The broader markets underperformed the benchmarks. The S&P BSE Midcap index fell 0.2 percent, while the S&P BSE Smallcap index closed with losses of 0.23 percent.

Top Nifty gainers include BPCL, JSW Steel, Axis Bank, and ZEE Entertainment.

Top Nifty losers included Cipla, UPL, Titan Company, and Shree Cements.

Stocks & Sectors

Sectorally, the S&P BSE Metal index rose 1.5 percent followed by the S&P BSE Bankex that was up 1.4 percent and the S&P BSE Finance index rose 1.1 percent.

Selling pressure was seen in the S&P BSE Telecom index that was down 1.4 percent followed by the S&P BSE Healthcare index that slipped 1.3 percent and the S&P BSE Consumer Durables index ended 1.31 percent lower.

Volume spike of more than 100 percent was seen in stocks like ITC, Bosch, Voltas and NIIT Technologies.

Long buildup was seen in stocks like Indiabulls Housing Finance, BPCL and ZEE Entertainment.

Short buildup was seen in stocks like Havells India, DLF and Bharat Forge.

Bharat Rasayan, Dixon Technologies, SRF, Torrent Pharma and L&T Infotech were among more than 200 stocks on the BSE hit a fresh 52-week high.

Stocks in news

Titan Company stock shed over 3 percent, a day after the company reported a net standalone loss of Rs 270 crore for the quarter ended June 2020.

Axis Bank stock jumped 4 percent after the bank raised Rs 10,000 crore via a Qualified Institutions Placement issue on August 10.

Shree Cements was down almost 4 percent after the cement maker reported a 13.5 percent fall in consolidated net profit at Rs 330.35 crore during the June quarter as against a profit of Rs 382 crore in the same period last year.

Capacit’e Infraprojects stock jumped 10 percent after the company reported a consolidated net loss at Rs 43.1 crore against a profit of Rs 23.6 crore YoY.

Bank of Baroda share price was down over 2 percent after the lender posted a net loss of Rs 864.3 crore for the June quarter 2020 due to provisioning on standard accounts.

JSW Steel share price was up 4 percent after the company’s crude steel production for July 2020 stood at 12.46 lakh tonnes up 9 percent from June 2020.

Technical View

The Nifty formed an indecisive candle on the daily charts, which suggests a constant struggle between the bulls and the bears

But, there are no visible signs to suggest that investors should go short.

A close below 11,299 can be considered as an initial sign of weakness, which can drag down the Nifty towards 11,142 but eventual downside target shall remain below 10882 levels.

“As risk-reward ratios doesn’t seem to be favorable for a long-side index trade bulls are advised to remain on sidelines by shifting their focus on stock-specific opportunities,” says Mazhar Mohammad of Chartviewindia.in.

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