Kunj Capital Market Roundup

Equity benchmarks clocked their best week since early February as investors weighed global and domestic economic recoveries from the pandemic. Banking stocks witnessed biggest gainer today after the PSU Banking major SBI announced strong quarterly number. Bank Index climbed up over 4%, second biggest gain this year. Moreover, investor sentiment on Friday recovered as COVID-19 cases saw a declining curve in the country. Sensex ended 2% (up 976 points) higher at 50540 after two days of back-to-back losses and gains during the week. Nifty climbed 1.8% (up 269 points) to close at 15175, with both gauges rising the most since March 30. Among the major sectors, Nifty Auto Index gained 1%, Metal and small cap Index advance half percent each while Nifty IT and mid cap Index gained 1% each. PSU Bank Index gained 4% and Private Bank Index advance 3.5%.

 India Vix slipped 3% to 19.08.  Among the global markets, US, Asia and European markets gained on economic optimism and easing concern about the possibility of reduced U.S. stimulus. In the domestic factor, good quarterly results and fall in pandemic cases boosted market sentiment. Covid cases fell to below 3 lakh in the last few sessions. Banking and NBFC stocks like SBI climbed up 4% to close 3-month high of Rs401 amid hefty volume of 19.3cr shares traded on NSE. Indian Bank climbed up 11% to close at Rs140. Bank of Baroda surged 6% to close at Rs81. Private Banks like HDFC Bank gained nearly 5% to close at Rs1497. IndusInd Bank, Axis Bank and ICICI Bank gained 4% each. NBFC stocks like HDFC gained 3% to close at Rs2518. Shriram Transport surged by 4% to close at Rs1478. Metal stocks witnessed fresh buying after a sharp decline yesterday. Tata Steel, JSW Steel and SAIL gained marginally.

Hindalco gained 1% to close at Rs390 after announced Q4 results. Oil & Gas stocks like HPCL gained 4% to close at Rs276 after the company reported strong Q4 results and announced hefty dividend Rs22.75 a share. Auto stocks like M&M surged 2% to close at Rs819 on hope of good monsoon to improve tractors sales. Maruti gained 1% to close at Rs6814. Tech stocks like Infosys gained 1% to close at Rs1354. HCL Tech, TCS, Tech Mahindra and Wipro gained nearly 1% each. 

Technical Outlook:

Nifty index opened positive near to 15000 zones and witnessed sustain buying interest throughout the day. It crossed psychological 15000 marks and headed to 15190 levels after a slight correction of last two sessions. It gave the highest daily close of the last 51 trading sessions and settled with huge gains of around 270 points. Technically, it formed a strong Bullish candle on daily and weekly scale while has been forming higher top – higher bottom from the last three weeks. Now, it has to hold above 15050 zones to witness an up move towards 15300 then life time high of 15431 marks while on the downside support exists at 15000 and 14900 zones.