What Happened With Market Today

Equity benchmarks shrugged off a volatile start and advanced for the second consecutive session, aided by gains in consumer durables, information technology, FMCG, cement, power, realty, and oil and gas stocks. Sensex rose 477 points or 0.80% to 60,546 while touched intra-day low of 59779. The is the highest close for the 30-stock gauge in nearly two weeks. Nifty Index advanced by 151 points or 0.80% similar magnitude to 18,069 while Nifty touched the intra-day low of 17836. This is the first time Nifty 50 closed above 18,000 since October 27.

Titan, UltraTech, Bajaj Finance, Grasim, HDFC, Tata Motor, and NTPC were major gainers in the Nifty stocks. However, IndusInd Bank, Divi’s Lab, M&M, SBI, and Maruti are among the major losers in the Nifty stocks.

Rally in the global markets in the last two days (India market shut), impressive quarterly results, and strong economic data boosted market sentiment. Moreover, Central Government cut excise on petrol and diesel also added fuel to the market. Among the global markets, Asian and European markets witnessed a mixed bag while the US market closed at a record on the previous day on the back of strong earning. US House on Friday passed the biggest U.S. infrastructure package in decades, unleashing $550bn of fresh spending on roads, bridges, public transit, and other projects in coming years

The broader indexes almost mirrored their larger peers with the NSE MidCap and Small Cap Index gaining 1% each. Nifty Bank index slipped 0.3% while PSU Bank Index advanced 2%. Nifty Energy, Realty, Metal, and IT Index gained 1.5% each. Nifty FMCG index gained 1% while the Nifty Pharma Index slipped 1%. India Vix gained 0.3% to close at 16.34.

Cement stocks witnessed a smart rally on the expectation of improved demand in the post-monsoon period. Rising construction, road, and real estate activities are likely to improve demand in cement stocks. Moreover, the central government announced cuts in excise duty on petrol and diesel will be positive for cement stocks. UltraTech surged 4% to close at Rs8214. JK Cement gained over 8% to close at Rs3783 and ACC gained 4% to close at Rs2518.

Banking stocks like IndusInd Bank slipped over 10% to close at Rs1061 after posting their biggest losses in about 18 months following allegations that its unit was providing new loans to customers to keep their existing debt from souring — charges the lender denies. Kotak Bank gained 3% to close at Rs2119. NBFC stocks like Muthoot Finance surged over 8% to close at Rs1659 after the company announced strong Q2 results and gold price surged to a 2-month high. Both Bajaj Finserve and Bajaj Finance gained 4% and 2% respectively. PSU Banks like Union Bank surged 9% to close at Rs54 and Bank of Baroda gained 3% to close at Rs106.

Pharma stocks like Divi’s Lab nosedived 6% to close at Rs4897 after the company reported poor Q2 results. However, Pfizer advance 5% to close at Rs5260. Metal stocks like Vedanta gained 4% to close at Rs325. Tata Steel, SAIL, and Jindal Steel gained 1-2%.

Technical Outlook:

The nifty index opened positive above 18000 levels and after a slight dip in the initial tick, it rebounded to 18087 levels. Buying was seen at declines which strengthened the index and it closed with gains of around 150 points. It formed a Bullish hammer sort of candle on a daily scale with long lower shadow. Now it has to hold above 18000 levels for an up move towards 18150 and 18350 zones. While on the downside, the index has major support at 17850 and 17777 levels.

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