Stock market boom before budget

Metal, Realty Weak: Engineers India, IDFC at new highs: Alok Ind., Vodafone at yearly lows; India VIX down 1.3 per cent to 13.61

Strength in IT, Auto, Banking, PSE Amidst strength in global markets, strength was also seen in the Indian stock market. Behind which the Sensex had crossed the level of 61 thousand at one time. However, he failed to lock onto this surface. The Sensex closed at 60,941.67 with a gain of 319.90 points and the Nifty closed at 18,118.55 with a gain of 90.90 points. Broads remained positive due to heavy buying in large-caps. Out of 50 counters comprising the Nifty-50, 34 counters showed positive close. While 16 counter closed negatives were observed. However, the breadth turned negative on the back of sluggishness in the broader market. Of the 3,831 counters on the BSE, 1,977 closed with losses. While 1,666 positives were closed. 141 counters showed their annual peak. While 206 counters had made a low of 52 weeks. Volatility Index India VIX down 1.3 per cent 13.

In the new week, the market opened with an increase on Monday. The benchmark Nifty hit a high of 18,162.60 after opening at 18,118.45 as against last week’s close of 18,027.65. However, it could not sustain at this level and closed up 0.5 per cent, showing range-bound trade during the day. Nifty futures closed at 18,150.80 with a premium of 32 points to Nifty Cash. Which was almost the same as the previous day. Thus, there do not seem to be any major long or short positions in the market. According to market circles, the pre-budget counting session is now pending and this is likely to add to the pre-budget rush. However, according to technical analysts, a major correction is unlikely unless the Nifty crosses the range of 18,200-18,250. While below there is support of 17,900. A long position can be maintained with a stoploss. Hindustan Unilever was on top to support Nifty on Monday. The stock has closed with a gain of about 2 per cent.

 

The company’s stock fell 4 per cent on Friday. The reason for which was to increase the royalty rate to the parent company. Other counters supporting the Nifty include Sun Pharma, Tech Mahindra, Eicher Motors, UPL, TCS, Infsys, Bajaj Auto, SBI, Coal India and Tata Motors. Whereas, weakness was seen in Grasim, NTPC, JSW Steel, Tata Steel, Larsen, Adani Ports, Adani Enterprises. Talking about sectoral performance, strength was seen in IT, Auto, Banking and PSE. The Nifty IT index rose 1.88 per cent to cross the 30,000 mark. In which Koforge was the top improver with 6.3 per cent. Apart from this, L&T Technology, LTI Mindtree, Emphasis, HCL Tech etc. were showing strength. Nifty Auto closed with a gain of 0.83 per cent.

Also included were Bharat Forge, Eicher Motors, Bajaj Auto, Tata Motors, TVS Motors and M&M. Nifty Pharma was pointing to gain 0.9 per cent. Apart from Sun Pharma, Biocon, Lupine, Zydus Life, Divis Labs, Torrent Pharma and Cipla were showing improvement. Nifty AFMCG rose 0.83 per cent. In which the main contribution of Hindustan Unilever was. Bank Nifty closed with a gain of 0.74 per cent. In which Bandhan Bank was the top performer with 4.55 per cent. Apart from this, AU Small Finance Bank, SBI, Federal Bank, Kotak Bank, HDFC Bank were also showing strength. However, PNB and IDFC First Bank remained soft. Nifty Realty closed down 0.6 per cent. On the back of higher interest rates, the impact on housing sales had dampened sentiment. Sobha was the top gainer in realty stocks with 3.22 per cent.

Prestige Estates and Oberoi Realty also declined. Nifty Metal underperformed and fell 0.4 per cent. In which Hindustan Zinc, NMDC, JSW Steel, Tata Steel, Adani Enterprises and Vedanta were the major losers. Torrent Power was the top gainer in the NSE derivatives segment, jumping 6 per cent.

Apart from this, significant improvement was also seen in Coforge, Persistent, Can Fin Homes, Bandhan Bank, Intellect Design, Havells India, AU Small Finance, Birlasoft, GAIL and Mannapuram Finance, L&T Technology. On the other hand, Shree Cement registered a decline of 5.7 per cent. Apart from this, UltraTech Cement, Atul, Dalmia Bharat, India Cements and PI Industries also fell.