Strong global cues push Sensex higher by over 360 points; Nifty above 11,450

The week got off to a good start on D-Street as the bulls pushed the two benchmark indices higher by nearly 1 percent each on August 24.

The S&P BSE Sensex rallied 364 points, or 0.9 percent, to close at 38,799 while the Nifty50 ended the day at 11,466, up 95 points, or 0.8 percent.

Strong global cues and buying in banks and financial stocks helped the indices climb crucial resistance levels.

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“The Indian benchmark indices built up on their opening gains, with the support of global cues, and ended the day on a strong note. Following more reopening guidelines by the government, the markets chose to ignore the rising cases of infections,” Vinod Nair, Head of Research at Geojit Financial Services said.

“It…keeps riding the positive momentum brought about by ample liquidity in the markets and expectations of the economy improving,” he said, adding gains were led by the banking index and especially private banks.

Nair, however, asked investors to remain cautious, considering the market run-up, and be selective in their investments.

Sectorally, action was seen in banks, finance, telecom, and capital goods stocks while some selling pressure was seen in realty, utilities and metal space.

The broader markets also had a good day. The S&P BSE Midcap index rose 0.4 percent while the S&P BSE Smallcap index rose 1.5 percent.

Top Nifty gainers included HDFC Bank, Bajaj Finance, Kotak Bank and ZEE Entertainment.

Top Nifty losers included Power Grid, Adani Ports and Hindalco.

Stocks & Sectors

Sectorally, the S&P BSE Bankex was up 2.4 percent followed by the S&P BSE finance that gained 2 percent and the S&P BSE Telecom index closed with gains of 1.6 percent.

Profit-booking was seen in the S&P BSE Realty index, which was down 1.1 percent, followed by the S&P BSE Utilities that fell 0.5 percent and the S&P BSE Metal index closed 0.2 percent lower.

More than 200 stocks on the BSE hit a 52-week high. Among them were Sanofi India, SRF and Aarti Drugs.

A volume spike of more than 100 percent was seen in stocks like Aurobindo Pharma, Jubilant FoodWorks, Sun Tv, Jindal Steel and Idea.

Long buildup was seen in stocks like Idea, Jindal Steel, and Voltas.

Short buildup was seen in stocks like Vedanta, PFC, and TVS Motor.

Stocks in news

Eicher Motors ended in the green after the 1:10 stock split took effect from August 24.

Adani Enterprises stock jumped more than 6 percent after reports indicated that Adani Group may soon purchase a 74 percent stake in Mumbai International Airport for nearly Rs 15,000 crore.

Blue Star share price was up over 4 percent after the company was awarded three patents by the Office of the Controller General of Patents, Designs & Trade Marks.

Zee Entertainment Enterprises share price jumped over 4 percent. GIC Private Ltd on account of government of Singapore (GOS) and monetary authority of Singapore (MAS) sold a total of 93.30 lakh shares, amounting to approximately 0.97 percent stake in ZEE on August 20, the company said in an exchange filing.

Phoenix Mills stock was up more than 4 percent after the government of Singapore invested Rs 450 crore in the recent qualified institutional placement (QIP) offering of the mall developer. The company raised Rs 1,100 crore through its QIP.

Technical View

The Nifty formed a bullish candle on the daily charts and gave the highest daily close since February 27, 2020.

It has been forming higher lows and immediate supports are shifting higher from 11,250 to 11,350 zones.

The major trend is positive and recent consolidation breakout could commence the next leg of rally ahead of its August F&O expiry, say experts.

“It has to continue to hold above 11,350 zones to witness an upmove towards the 11,600 zone while on the downside, medium-term support exists at 11250-11200 zones,” Chandan Taparia of Motilal Oswal Financial Services Limited said.