Stock Market Highlights: Indian equity indices, Sensex and Nifty ended at record closing highs Tuesday led by buying in FMCG and private banks and realty stocks. Broader markets supported the rally with the midcap and smallcap indices closing over half a percent higher each. Gains were seen in private banks, financials, FMCG, realty and IT stocks, while Nifty Pharma and Nifty Metal indices ended in the red.
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Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The market is trading at the highest point of the current up move and we are witnessing mixed reaction in the market. The stock-specific activity is increasing day by day, which is an indication of a "cautiously optimistic" approach from the traders. As the market has closed above the level of 15,850/52,750, we could see indices breaching the levels of 16,050/53,300 in the near term. Supports for the market exists at 15,800/52,600 and at 15,750/52,300. The strategy should be to buy indices only on dips. The Bank-Nifty is heading towards the level of 35,700 and corporate facing banks should do well.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty continues to be positive with range bound action. The overall chart pattern of Nifty indicate a chances for further consolidation or minor weakness from the highs in the next 1-2 sessions. Immediate support is placed at 15,700.
Sumeet Bagadia, Executive Director, Choice Broking
Shrugging off the higher inflation, Indian equity bourses surged over expectation of economic revival with declining covid-19 cases and vaccination pace. Technically, the nifty is in a bullish trend from the last many trading sessions and making higher highs. In the recent session, it has breached an immediate resistance of 15,835.55 and settled above it, which indicates bullish strength in the counter. On the daily chart, the index has been hovering above 200 & 100 days Simple Moving Averages. Moreover, an oscillator Stochastic has also suggested positive crossover, which indicates bullish strength for the near term. At present, the nifty seems to have resistance at around 16,000 levels while immediate support comes at 15,650 levels.
Ajit Mishra, VP - Research, Religare Broking
Markets edged marginally higher in a range-bound session, taking cues from stable global indices. After the initial uptick, the benchmark hovered in a narrow band however movement on the stock-specific front kept the participants busy till the end. Nifty has been trading in an uptrend channel on the intraday chart and currently hovering around the upper band of the same. We’re seeing an early sign of a rebound in the banking index which could trigger a further surge. Traders should continue their focus on the selection of stocks and avoid contrarian bets.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty finally managed to hit the 15,900 levels but ended up closing a tad below. The zone of 15,900-16,100 is a resistance block and traders should be cautious around these levels. A buy-on dips approach would be a prudent form of trading this patch. 15,700-15,750 is good support for the index and as long as that does not break, we are in the territory of the bulls!
Manish Shah, Founder, www.Niftytriggers.com
Nifty saw a positive close for the day and the pattern in play was a small bodied candle which is a Doji. By itself Doji has little relevance. The market gapped open for the day and remained at elevated levels through the day. Nifty moves along in a well-developed channel and currently it trades above the resistance at 15,750 points. The channel points out towards targets of 16,000-16,100 over next several days. The question is if we will hit 16,000 before the end of the current expiry. International equity markets have a bullish undertone and the overall trend in Nifty is up. Bank Nifty has also started to look up so most likely Nifty should end higher than today’s close. Oscillators are also bullish with MACD in a buy mode and moving averages pointing up. We can expect to show a steady bullish undertone towards 16,000 over next couple of days.
Market At Close | Market breadth favours advances; advance-decline ratio at 3:2
Market At Close | ICICI Bank contributes 131 points to Nifty Bank’s gain of 297 points.
Market At Close | Market continues to post record close; Banks lead market gains today.
Rupee At Close | The Indian rupee ended lower at 73.31 per dollar on Tuesday. The local currency opened marginally higher at 73.19 per dollar against the previous close of 73.27 and traded in the range of 72.16-73.34.
Market At Close | Here are the highlights from today's market session
- Market Continues To Post Record Close; Banks Lead Mkt Gains Today
- Nifty Rises 57 Points To 15,869 & Sensex 198 Points To 52,750
- Nifty Bank Gains 297 Points To 35,248 & Midcap Index 166 Points To 27,364
- ICICI, HDFC Bank & Asian Paints Lift While TCS & Bajaj Fin Drag
- ICICI Bank Contributes 131 Points To Nifty Bank’s Gain Of 297 Points
- Info Edge, Adani Ent & GMR Infra Amongst Top Midcap Contributors
- Gujarat Gas Moves 9% Higher On Nomura’s Increase In Target Price
- NMDC Falls Over 2% On Rpts Of Govt’s OFS Plan At A Discount To CMP
- Asian Paints Top Nifty Gainer On Reports Of Hike In Some Pdt Prices
- Jubilant Food Slips While Whirlpool gains after Jan-March Earnings
- Coal India Closes 1% Lower Despite Better-than-expected Q4 Earnings
- Market Breadth Favours Advances; Advance-Decline Ratio At 3:2
Closing Bell | The Indian benchmark equity indices ended at record closing highs on Tuesday led by buying in FMCG and private banks and realty stocks amid positive global cues. The Sensex rallied 221.52 points, or 0.42 percent to end at record closing high of 52,773.05, while the Nifty ended 57.40 points, or 0.36 percent to 15,869.25. Broader markets supported the rally with the Nifty Midcap100 and Nifty Smallcap100 indices closing over half a percent higher each.
Among sectors, gains were seen in private banks, financials, FMCG, realty and IT stocks, while Nifty Pharma and Nifty Metal indices ended in the red. On the Nifty50 index, Asian Paints, HDFC Life, Axis Bank, ICICI Bank and HUL were the top gainers, while Divi's Laboratories, Adani Ports, Coal India, Tata Motors and Bajaj FInserv led the losses.
Market Watch: Mehraboon J Irani, MD & CEO, Gini Gems Consultants
On Adani Ports & Adani Enterprises | I am quite comfortable with Adani Ports certainly. As far as Adani Enterprises go, I still believe that a lot of value unlocking will happen. As far as Adani Ports goes, I think business is good. I think this company can scale only upwards.
On Jubilant FoodsWorks | For the people who are holding it, this will remain a good story for a long time to come but valuation wise I don’t see any triggers at this moment to go ahead and tell people that they can go on adding on to their positions. So at this present level, I think it is richly valued.
HDFC Bank says Mobile App glitch is resolved
HDFC Bank has said that the issues around mobile banking app has now been resolved. In a statement, the private lender said, “Please note the issues around mobile banking app is now resolved. Customers can now use NetBanking and mobile banking app for transactions. We regret the inconvenience and thank you for your patience.”
Average FY22 inflation at 6% a possibility; rate hike in Aug policy unlikely: SBI’s Soumya Kanti Ghosh
Inflation has risen to its highest level in six months. Retail inflation in May accelerated by 6.3 percent which is above the RBI target range of 2 to 6 percent. Further, the rise in core inflation has also touched 6.6 percent. In an interview with CNBC-TV18, Soumya Kanti Ghosh, group chief economic advisor at State Bank of India (SBI), and Lakshmi Iyer, CIO-debt & head product at Kotak Mahindra AMC, spoke at length about the numbers. First up, Ghosh said, “We are still working out the intricacies of annual inflation, but now the annual average rate for full FY22 should be closer to 6 percent. Yesterday’s number, which has come out, is not related to statistical base because the core inflation is highest since June 2013, the momentum in core inflation month-on-month and overall headline inflation is the highest since April ’20.” Read here,
Find out why Credit Suisse bets on HCL Tech; Citi neutral on Coforge
IT sector is in focus on the back of a few brokerage notes. According to Credit Suisse, HCL Technologies is now trading at a 29-year high valuation discount to Wipro. HCL Technologies has outperformed Wipro in terms of its growth metrics for the last 10 years and is likely to do so for the next two years, which is why Credit Suisse believes that this valuation discount to Wipro is unwarranted. Citi has initiated coverage on two midcap IT names, Coforge and L&T Technology. Citi believes, well-managed tier-II and mid-tier Indian IT companies will perform better than the largecap names in terms of growth metrics for the next two years. However, the upside potential remains limited because valuations are close to 31 times forward, which is much higher than the mean valuation. Citi has initiated a ‘neutral’ rating on Coforge with a target price of Rs 4,165 and, a ‘sell’ rating on L&T Technology with a target price of Rs 2,635. Read here.
Gujarat Gas hits 52-week high as Nomura raises price target
Shares of Gujarat Gas company jumped over eight percent to hit its 52-week high after global brokerage house Nomura remained upbeat on the stock. The brokerage reiterated a buy call on the stock and raised its target price to Rs 875 from an earlier Rs 400. It also increased the stock's FY22-23 EPS by 35 percent/42 percent. The stock rose as much as 8.6 percent to its 52-week high of Rs 653.30 per share on the BSE. Earlier this month, the firm reported a strong set of numbers for the quarter ended March (Q4FY21). The city gas distribution company posted a consolidated profit of Rs 350.86 crore in Q4FY21, registering a growth of 40.1 percent over Rs 250.46 crore reported in the year-ago period. The company’s revenue jumped 28.2 percent to Rs 3,489.31 crore from Rs 2,722.17 crore, YoY, and average gas sales volume for the quarter was at 12.13 mmscmd, up by 22 percent compared to the corresponding quarter previous year. Read here.
All FPIs in focus are 'active', don't seek clarifications from individual shareholders: Adani Group
Jugeshinder (Robbie) Singh, Group CFO of Adani Group, in an exclusive interaction with CNBC-TV18, said that they did not seek clarification from Foreign portfolio investors (FPIs) on the freezing of three foreign funds. However, the regulator and Registrar and Transfer Agent (RTA) confirmed to them that these funds (FPIs) are not frozen. "There has been a malicious attempt to push a patently false story," he said. Read here.
Spencers Retail Q4FY21 | The company's consolidated net loss narrowed to Rs 34.5 crore from Rs 49.3 crore, YoY. Consolidated revenue fell 7.6 percent to Rs 592.4 crore from Rs 641 crore, YoY.
Bull market won’t be impacted with rise in interest rates, says Marcellus’ Saurabh Mukherjea
The bull market will not be impacted due to the rise in interest rates, said Saurabh Mukherjea, founder of Marcellus Investment Managers. Mukherjea also said that the global equity markets will not get derailed by higher interest rates. Speaking in an interview with CNBC-TV18, he said, “I do not think this bull market will suffer because the rate starts rising. I think this notion that people keep raising, that interest rates will go up, and that will challenge the bull market is rubbish. We have seen repeatedly recoveries sustain through interest rate cycle moving up, and that is the signature of a strong recovery.” “Over the next 12 months, globally, bond yields and rates should start rising, given that this is the sheer strength of economic recovery across the world, allied to Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation - it does suggest that the rate cycle will go up,” Mukherjea said. Read here.
Shrikant Chouhan, Kotak Securities
- Buy SBI Life with a stop loss of Rs 980 and a target of Rs 1,040.
- Buy India Cements with a stop loss of Rs 180 and a target of Rs 210.