Kunj Capital Market Roundup

Equity benchmarks extended gains to a second straight session led by strong buying interest in banking stocks and heavyweights such as IOC SBI, BPCL, SBI and L&T. On the other hand, Shree Cement was the top laggard, ending with a cut of 2.51 per cent. JSW Steel, Tata Steel, Britannia, IndusInd Bank and Tata Consumer were among other losers. Sensex index ended 111 points or 0.22 per cent higher at 50,652 and Nifty benchmark settled at 15,198, up 22 points or 0.15 per cent from its previous close. Equities remained positive despite mixed global cues as persistent decline in daily caseload and improvement in recovery rate in the second wave of Covid-19 continued to lift investors’ sentiments.

Daily additions in Covid-19 infections in the country stayed below the 3,00,000-mark for the eighth day in a row, boosting investors’ sentiment on Dalal Street. Moreover, good quarterly results boosted the market sentiment. Among the global markets, Asian markets witnessed mixed while European markets opened on a positive note amid encouraging PMI data for the UK and eurozone. Both Dow and Nasdaq Future gained over quarter percent each. Among the major Indexes, Nifty Pharma Index gained 0.3%, Nifty Metal Index slipped half percent, both Nifty Mid-cap and small cap Index gained nearly 1% each. India Vix ended flat at 19.13. Among the banking stocks, SBI surged 3% to close at Rs412 after announcing strong quarterly results. Both Axis Bank and HDFC Bank gained 1% each. However, Kotak Bank and IndusInd Bank declined from the intra-day high on account of profit booking.

Pharma stocks like Natco Pharma climbed up 10% to close at Rs1086 after it initiated phase-III clinical trials of Molnupiravir capsules to evaluate its efficacy in treating patients with mild Covid-19. Currently stocks are up 10%. Both Dr Reddy and Cadila gained nearly 1% each. Metal stocks recovered partially from the intra-day low. However, China roiled metals by saying it has “zero tolerance” for violations in the commodities market. Tata Steel slipped 2% to close at Rs1092. Hindalco, SAIL, NMDC and Vedanta recovered from the intra-day low. PSU stocks like Container Corporation climbed up 8% to close at Rs634. Company says it plans to sign a 35-year contract to use Indian Railways’ land and will raise as much as Rs3500cr to fund the proposal. IOC surged 5% to close at Rs109. HPCL gained 3% to close at Rs285.

Technical Outlook:

Nifty index opened positive but remained consolidative in a range of 100 points in between 15150 to 15250 zones. Even though it was muted for most part of the day, sustained buying interest was seen at every small declines. Technically, it formed a small bodied candle on daily scale while has been forming higher high – higher lows from the last two sessions. Now, it has to hold above 15150 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.