Better GDP, auto sales push Nifty above 13,100, Sensex up 506 points

Better-than-expected GDP data and good auto sales in November saw the benchmark indices gain 1 percent each on December 1, with the BSE Sensex closing 505.72 points, or 1.15 percent, higher at 44,655.44, and the Nifty gaining 140 points, or 1.08 percent, at 13,109.

“The markets started December trading on a strong footing, raising the benchmark to a fresh high due to a good GDP data. The Manufacturing PMI released today showed a slight contraction compared to the previous month, though growth remained strong,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Markets across the globe made a positive start to the month expecting an extension of November’s record-breaking gains along with strong hopes of coronavirus vaccine. We believe that this optimism can sustain in the near term with a shift towards mid and small caps led by the lag effect.”

All the sectoral indices ended in the green. The Nifty PSU bank index rose 2.8 percent, while the Nifty pharma, metal, IT and infra indices gained more than 1.5 percent each.

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Broader markets performed in line with the benchmarks. The BSE midcap rose 0.9 percent and smallcap 0.8 percent.

GAIL, Sun Pharma, IndusInd Bank, ONGC and UPL were among major gainers on the Nifty, while losers included Nestle, Kotak Mahindra Bank, Titan Company, NTPC and Bajaj Finance.

Also Read – Gainers & Losers: 10 stocks that moved the most on December 1 

Stocks & sectors

The BSE realty index gained 3.5 percent, while oil & gas and IT indices added 2 percent each.

A volume spike of more than 100 percent was seen in UPL, Bharti Infratel and Sun Pharma.

Long buildup was seen in Canara Bank, Motherson Sumi and Apollo Hospitals, while short buildup was seen in Ramco Cement, Hero MotoCorp and Tata Consumer.

More than 100 stocks, including JK Cement, Punjab Chemicals and APL Apollo, hit a 52-week high on the BSE.

Technical View

The Nifty formed a bullish candle on the daily scale with a long lower shadow, which indicates that any small decline is being bought in the market.

It has given highest daily close above 13,100 and is trading 36 points away from the life-time high of 13,145.

“Now, it has to continue to hold above 12,950 zones to witness an upmove towards 13,250, while on the downside major support exists at 12,800 zones,” Chandan Taparia of Motilal Oswal Financial Services told .

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