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Podcast | An evening walk down Dalal Street: Good News! Sensex just 200 points away from record highs

July 10
19:06 2018

Bulls took charge of D-Street from the word go and pushed the S&P BSE Sensex above 36,000 on Tuesday and is now just 204 points short of its record high of 36,443.98 recorded on 29 January 2018.

The Nifty was not far behind, it witnessed a breakout above 10,930. Bulls pushed the index above 10,900 levels for the first time since February 2018. The index surged past its crucial resistance level of 10,930 which was acting as a crucial resistance level for the index in the near-term.

The S&P BSE Sensex closed 304 points higher at 36,239.62 while the Nifty50 rose 94 points up at 10,947 on Tuesday.

Short covering helped along with long positions helped the index staged a smart rally in the Indian market which was led by gains in energy, realty, telecom, metals, as well as oil & gas stocks.

After registering a breakout above 10,930, the next logical target for Nifty is placed around 11,000, suggest experts. Investors should keep a stop loss below 10800 for all long positions.

“The Nifty opened gap up today & traded with positive bias throughout the day. With the opening gap, the Nifty crossed a falling trendline as well as a swing high of 10,893. It went on to cross the May high of 10,929 as the day progressed. The Index also managed to surpass 78.6% retracement of the fall from 11,171 to 9,951 on a closing basis,” Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.

“The key Fibonacci level was placed at 10,910. Thus the bulls seem to be pushing the index for higher levels. The index now looks set to test its weekly upper Bollinger Band, which is close to 11100. On the other hand, the level of 10800 shall act as a crucial support,” he said.

On the sectoral front, the S&P Energy index rose 2 percent, followed by the S&P BSE Realty index which was up 1.79 percent, the Telecom index gained 1.75 percent, and the Metal index rose 1.58 percent.

The S&P BSE Midcap index rose 1.01 percent, and the S&P BSE Smallcap index rose 1.04 percent.

Top Sensex gainers include names like RIL (up 3%), Yes Bank (up 2.5%), Coal India (up 2.5%), Bajaj Auto (up 2.3%), and Wipro (up 2.2%).

Top Sensex losers include names like Sun Pharma (down 1.2%), IndusInd Bank (down 1.05%), Kotak Mahindra Bank (down 1%), and TCS (down 0.56%). TCS closed with a negative bias ahead of results.

Tracking the momentum, as many as 40 stocks on the BSE hit a fresh 52-week high which includes names like Bharat Rasayan, Britannia Industries, HEG, Tata Elxsi, Asian Paints, Graphite India, Persistent Systems, Bandhan Bank etc. among others.

Stocks in news:

IndusInd Bank fell over 1% after it reported stable earnings for the quarter ended June 2018. The private sector lender has reported a net profit of Rs 1,035.7 crore for the June quarter, a growth of 24 percent compared to Rs 836.5 crore reported in same period last year.

Shares of HCL Technologies rose 1.8% higher as investors reacted to the news of buyback by the firm. “A meeting of the board of directors of the company is scheduled to be held on July 12 to consider a proposal for buy-back of the equity shares of the company,” the IT services company said in its filing.

Reliance Industries, Aegis Logistics, GAIL and Gujarat Gas rallied 2-4 percent intraday on Tuesday as the bidding for the ninth round of City Gas Distribution Scheme closes later today.

Oil marketing companies (OMCs) has put their bids aggressively under 9th round of City Gas Distribution (CGD) Scheme and 10 new companies have also shown interest in city gas distribution, reports CNBC-TV18 quoting unnamed sources.

Shares of Larsen & Toubro Infotech gained 2.3 percent after it approved the allotment of 3,52,700 equity shares of face value of Re 1 each under the various employee stock option schemes of the company.

In other news/Global Update:

Global update

Asian markets closed higher on the back of positive handover from Wall Street, even as investors chose to look past trade war-related concerns. The Nikkei 225 advanced 0.66 percent or 144.71 points. South Korea’s Kospi rose 0.37 percent to close at 2,294.16.

Meanwhile, markets in Europe too followed suit of global peers as investors looked to focus on upcoming earnings season. Stoxx 600 index was higher by 0.24 percent in the morning trade.

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