Sensex rallies nearly 500 points, Nifty reclaims 11,300 levels

Bulls remained in control of D-Street on Tuesday pushing Sensex and Nifty higher by over 1 percent each despite mixed global cues. The S&P BSE Sensex rallied nearly 500 points while the Nifty50 closed with gains of more than 100 points.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 477 points to 38,528 while the Nifty50 closed with gains of 138 points to 11,385.

With the Nifty50 closing above its previous swing high placed near 11,370, experts suggest that the momentum is likely to continue.

“Indian benchmark indices kept gaining strength during the course of the day, as opposed to mixed global market cues. US-China political tensions and the uncertainties over the US stimulus package kept global markets on edge,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“In India, investors took comfort in the expectation of government spending to offset the impact of the lockdown and the progress of the monsoon and its relation to the rural economy also improved sentiments. Gains were led by the banking index,” he said.

Nair further added that with liquidity and expectations overcoming concerns about valuations, any consolidation in the markets has been bought into and this trend is expected to continue.

Sectorally, the action was seen in realty, banks, finance, consumer durables, and metals while mild profit-taking was visible in the healthcare space.

On the broader market front, the S&P BSE Midcap index closed with gains of 1.1 percent while the S&P BSE Smallcap index rose 1.3 percent.

Top Nifty gainers include names like JSW Steel, Kotak Bank, UltraTech Cements, and Grasim Industries.

Top Nifty losers include names like GAIL India, Cipla, Tech Mahindra, and BPCL.

Stocks & Sectors:

Sectorally, the S&P BSE Realty index rose 4 percent, followed by the S&P BSE Bankex which was up 2.1 percent, and the S&P BSE Finance index closed with gains of 1.8 percent.

Volume spike of more than 100% was seen in stocks like DLF, Grsim, Havells India, and Adani Enterprises.

Long Buildup was seen in stocks like Adani Enterprises, Indiabulls Housing, and Wipro.

Short Buildup was seen in stocks like BPCL, Page Industries, and GAIL India.

More than 180 stocks on the BSE hit a fresh 52-week high that includes names like Tide Water, SRF, Alkyl Amines, and APL Apollo.

Stocks in news:

KNR Constructions stock jumped 6 percent after the company announced its June quarter earnings.

Birlasoft share price surged over 14 percent after the company formed a global strategic cloud alliance with Microsoft.

GPT Infraprojects share price jumped over 10 percent after the company bagged a Rs 196.30-crore order for the Metro Railway project in Kolkata.

Vascon Engineers share price fell over 5 percent after the company reported consolidated net loss at Rs 37.3 crore against a profit of Rs 5.7 crore in the year-ago.

Share price of telecom companies ended mixed with the Supreme Court hearing the matter pertaining to the repayment of adjusted gross revenue (AGR) dues by telecom companies.

Technical View:

Nifty formed a bullish candle on the daily charts. The major trend is intact to positive and recent consolidation breakout could start the fresh leg of rally in the market.

It has to continue to hold above 11,250 zones to witness an upmove towards 11,500 and 11,600 levels while on the downside support exists at 11,200-11,150 zone, Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited said.

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