RIL at record high; Sensex jumps 600 points, Nifty reclaims 11,400

Indian markets snapped a two-day losing streak on September 10, as S&P BSE Sensex rose 646 points to close at 38,840 while the Nifty50 jumped 171 points to end at 11,449.

Smart rally in RIL and positive global cues helped the bulls take charge of D-Street after two days of losses, experts said.

Shares of Reliance Industries rose more than 7 percent to touch a record high of Rs 2,343.90 and became the first Indian listed company to record a market cap of $ 200 billion.

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“Indian indices again had a strong showing today, backed by strong gains in the shares of RIL, which alone contributed to more than half of the gains seen on the Nifty. Suitors lining up for potential stake sale in Reliance Retail drove its gains today,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

Positive global cues also played a part. European markets turned cautious ahead of the European Central Bank (ECB) policy meeting later in the day.

“Investors seem to have kept the simmering border tensions on the backburner for now and, in the absence of fresh triggers, will look at global markets and stock-specific news for direction,” Jain said.

Sectorally, action was seen in energy, oil & gas, public sector, and capital goods stocks while profit-taking was visible in telecom, and metal space.

Top Nifty gainers included Grasim Industries, BPCL and RIL.

Top Nifty losers included Tata Steel, Hindalco, and Bharti Infratel.

Stocks & Sectors

Sectorally, the S&P BSE energy index was up 6 percent followed by the S&P BSE oil & gas index that rose 3.5 percent and the S&P BSE public sector index closed with gains of 1.5 percent.

Selling pressure was seen in the S&P BSE telecom which slipped 1.4 percent and the S&P BSE metal index fell 0.8 percent.

A volume spike of more than 100 percent was seen in Colgate Palmolive, Asian Paints, and BPCL.

Long buildup was seen in stocks like Adani Enterprises, BPCL and Asian Paints

Short buildup was seen in stocks like Container Corp, Bharti Infratel, and SAIL.

More than 100 stocks on the BSE hit a fresh 52-week high. Among them were RIL, Asian Paints, Tata Elxsi, and Adani Gas.

Technical View:

The Nifty formed a long bullish candle on the daily charts.

The index negated the formation of lower top-lower bottom on a lower time frame and gave the highest daily close in the last five trading sessions near 11,450.

It has again started to form higher lows and reclaimed its position at the highest part of the week towards the last trading session, Chandan Taparia, Motilal Oswal Financial Services Limited told Moneycontrol.

“Now till it holds above 11,333-11,350 zones, the index could head towards 11,550-11,600 zones while on the downside, the medium-term support exists at 11,200-11,180 zones,” he said.