Bulls take charge of D-St; Sensex, Nifty close at record high

The benchmark indices touched new highs on June 11 supported by the metal, IT and pharma names. At close, the Sensex was up 174.29 points, or 0.33 percent, at 52,474.76 and the Nifty was up 61.60 points, or 0.39 percent, at 15,799.40.

“Taking cues from the strength of the mother market US where S&P 500 touched record highs, the Sensex rose to record highs, touching 52,641.53 in early morning trade. The rally was led by IT majors TCS, Infosys & HCL Tech, with RIL also contributing to the rally. The banking stocks have been on the backfoot on concerns of rising NPAs,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

The fact that the US markets shrugged off inflation gave ammunition to the bulls but the rally in some mid and smallcaps of unproven track record was a cause of concern, he added.

Among sectors, IT, metal and pharma indices rose 1-2 percent, while selling was seen in the FMCG and banking names. BSE midcap and smallcap indices ended in the green.

Tata Steel, JSW Steel, Coal India, Dr Reddy’s Labs and Hindalco were among the major gainers, while losers included Axis Bank, SBI Life Insurance, IndusInd Bank, L&T and HDFC Life.

Stocks & sectors

On the BSE, the metal index added 3 percent, the IT index rose 1.4 percent, while the realty index shed a percent.

Among individual stocks, a volume spike of more than 300 percent was seen in SAIL, Coal India and Mahanagar Gas.

Long buildup was seen in Mphasis, City Union Bank and Aurobindo Pharma, while short buildup was seen in Pidilite Industries, DLF and Havells.

More than 500 stocks, including NBCC, Tata Coffee and Mastek, hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a Doji candle on the daily scale and a hammer pattern on the weekly frame, indicating that declines were being bought. It continued its higher highs-higher lows formation on the weekly scale for the sixth week.

“The Nifty has to hold above 15,750 zones to witness an up move towards 15,900 and 16,000 zones, while on the downside, support exists at 15,650 and 15,550 zones,” said Chandan Taparia of Motilal Oswal Financial Services.