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Taking Stock: Market rides positive global sentiment; Bharti Airtel, RIL top gainers

November 19
18:06 2019

Positive global sentiment extended to the Indian market as the equity barometers Sensex and Nifty ended with decent gains on November 19.

Global markets touched their highest levels in nearly two years as risk appetite of investors was whetted on hopes that the United States and China can reach a deal to end their trade war.

Sensex settled 186 points, or 0.46 percent, up at 40,469.70, while Nifty finished with a gain of 56 points, or 0.47 percent, at 11,940.10.

The market benchmark Sensex closed in positive on gains in shares of select heavyweights, including Reliance Industries, Bharti Airtel, Axis Bank and HDFC Bank as only 11 stocks closed in the green in the 30-share pack.

Among the 50 stocks in the Nifty index, 24 logged gains.

Gains in telecom, pharma, energy and infra stocks pushed the market higher while losses in auto, metals and consumer stocks limited gains.

The BSE Telecom pack surged 8.52 percent while BSE Energy logged a healthy gain of 2.38 percent.

On the NSE, Nifty PSU Bank index settled with a gain of 3.88 percent.

Among the second-rung indices, BSE Midcap closed almost flat while BSE Smallcap eked out a gain of 0.31 percent.

Vinod Nair, Head of Research at Geojit Financial Services said the market turned positive due to buoyancy from telecom stocks supported by tariff hike plans, while positive vibes were also witnessed in PSU banks, having exposure to distressed assets.

He said the fear of downgrade in FY20 earnings due to the slow pace in consumption demand and industrial growth may consolidate the market in the near term.

Ajit Mishra, Vice President – Research at Religare Broking said investors are awaiting the US-China trade deal, as it would induce some volatility in the market. He is cautious on the market for the near-term as it is hovering around peak levels.

Top Nifty gainers: Bharti Infratel surged 11 percent, followed by Bharti Airtel which ended almost 9 percent higher. Axis Bank and Reliance Industries rose nearly 4 percent each.

Top Nifty losers: Yes Bank fell 2.51 percent to lead the pack of losers. It was followed by Mahindra & Mahindra and Zee Entertainment, both falling 2 percent.

Stocks in news:

Reliance Industries: Shares of oil-telecom-to-retail major closed at Rs 1,509.80, up Rs 51.30, or 3.52 percent and became the first company among listed entities on exchanges to hit a market capitalisation of Rs 9.5 lakh crore.

Vodafone Idea, Bharti Airtel: Shares of the telecom operator surged 35 percent while those of Bharti Airtel finished 7.36 percent higher after both companies decided to increase tariffs.

Yes Bank: Yes Bank share price declined 2.66 percent after promoters sold their remaining stake in the private lender.

IDBI Bank: Shares closed with a gain of 3 percent after the company divested its stake in IDBI Asset Management to Muthoot Finance.

SpiceJet: SpiceJet share price rose 3.21 percent after a Directorate General of Civil Aviation (DGCA) data showed the company’s market share increased from 14.7 percent in September to 16.3 percent in October.

Volume gainers:

Volume spike of 200-500 percent was seen in stocks like Tata Elxsi, Castrol India, Tata Chemicals and Just Dial.

Long Buildup – Tata Elxsi, Castrol India, Bharti Airtel, Bharti Infratel and Tata Chemicals

Short Buildup – Muthoot Finance, HCL Technologies, Zee Entertainment, Hero MotoCorp and NBCC

Technical View:

Market breadth was tad negative but nothing alarming. Profit booking so far from 12,000 level is shallow which suggests underlying strength in the market.

“Market is much healthier now as the participation is wider. We continue to remain overall positive on the index and believe the index is poised to hit fresh all-time highs above 12,100 zone, said Manav Chopra, CMT, Head Research – Equity at Indiabulls Ventures.

He said 11,700-11,550 is the key support zone for Nifty while 12,000-12,100 is the zone of resistance.

On the other hand, Rohit Singre, Senior Technical Analyst at LKP Securities said if Nifty manages to hold the current levels, we may see a decisive break above the strong resistance at 12,000-mark.

He said support for the index is near 11,900-11,850 zone.

Three levels: 11,881.8, 11,958.8, 11,972

Max Call OI: 12,000, 12,200

Max Put OI: 11,800, 11,900

Disclaimer: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.

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