What was looking like another freaky Friday, turned out to be a fabulous one as the bears were beaten back on a volatile day of trading. The S&P BSE Sensex recovered more than 1,400 points and closed in the green while the Nifty reclaimed 9,900 levels.
The Sensex ended the day 242 points higher at 33,780 while the Nifty50 was up 70 points up at 9,972.
A strong opening of European markets gave bulls the confidence to push bears out of D-Street. Top index weights such as RIL, HDFC Bank, M&M and Bajaj Finance led the rally.
“A volatile day came to an end with the Nifty recovering around 300 pts from the day’s low. The major contributor to this gain was Reliance Industries which was also supported by technical bullishness,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“Markets tracked the positive opening in the European markets, post the sell-off seen yesterday. Except for IT, which was impacted by H-1B visa news, all the other sectors traded positive. Currently, markets seem to be driven by global cues and stock-specific action will be the norm.”
Sectorally, the action was seen in auto, energy, telecom, consumer discretionary, and realty stocks while profit-booking was seen in IT, power, and capital good stocks.
The broader markets also ended in the green. The S&P BSE Midcap index was up 0.96 percent while the S&P BSE Small-cap index closed with gains of 0.13 percent.
Top Nifty gainers included Bajaj Finance, Shree Cements, Bharti Infratel, and M&M.
Top Nifty losers included Power Grid, Tech Mahindra, ONGC, and ZEE Entertainment.
Stocks & Sectors
Sectorally, the S&P BSE Auto index was up 2.9 percent, followed by the S&P BSE Energy index which was up 2.4 percent, and the S&P BSE Telecom index rose 2.2 percent.
Profit-taking was seen in sectors like IT index that fell 1.4 percent followed by the S&P BSE Power index, which was down 0.6 percent. The S&P BSE Capital Goods index closed with losses of 0.33 percent.
A volume spike of more than 100 percent was seen in stocks like Page Industries, SBI Life, Jubilant FoodWorks, HDFC Life, Shree Cements, Idea Cellular and NCC.
Long Buildup was seen in stocks like Idea Cellular, SBI Life, Chola Finance, NCC, and M&M.
Short Buildup was seen in stocks like Bharat Forge, Page Industries, Kotak Mahindra Bank, and ZEE Entertainment.
More than 60 stocks on the BSE hit a 52-week high. These included Vaibhav Global, Ruchi Soya, Dhanuka Agri, Adani Green, and Granules India.
Stocks in news
Mahindra & Mahindra’s share price jumped more than 7 percent after the company declared its Q4 results. It posted a massive Rs 3,255 crore of loss in the quarter ended March 2020, impacted by write-down of investment in Ssangyong and other international subsidiaries. Profit in the year-ago quarter was at Rs 969.2 crore.
Tata Power Company gained over a percent after the company’s arm completed the sale of three capsized ships to a German company for $213 million. The sale proceeds will be used for reducing debt.
Caplin Point Laboratories stock jumped over 6 percent after subsidiary Caplin Steriles was granted the final approval from the United States Food and Drug Administration for a blood pressure drug.
Salasar Techno Engineering share price gained over 4 percent after the company entered into a supply agreement with American Tower Corporation (ATC) to provide steel telecommunications structures and telecommunication structures accessories that all African ATC entities will utilize.
The IT companies ended with 1-3 percent losses amid reports that US President Donald Trump was considering suspending a number of employment visas, including the H-1B.
Maruti Suzuki stock was up over 2 percent, with the company rolling out Bharat Stage-VI compliant S-CNG variant of Celerio.
The Nifty closed above its 50-Days EMA placed at 9642 and formed a bullish candle on the daily charts but a bearish one on the weekly scale.
It now faces resistance near its 5-day EMA placed near 10,000.
The index is likely to consolidate near current levels, and the upsides still remain capped towards its 100-day moving average, which is around 10,206.
“A break above 10,328 levels is required for the bulls to take control. On the downside, 9,544 shall remain sacrosanct support in the short-term, a breach of which on a closing basis shall be read as a trend reversal sign in favour of bears,” Mazhar Mohammad of Chartviewindia.in said.
“For the time, short-term traders are advised to remain neutral on the index for the next session by shifting focus on stock-specific opportunities,” he said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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Published at Fri, 12 Jun 2020 11:21:41 +0000-Taking Stock: Bears take a U-turn! Sensex reclaim 33K; telecom, energy stocks lead rally