The market extended the rally for the fourth straight session on May 7 with Nifty closing above 14,900 led by the metal and pharma stocks. At close, the Sensex was up 295.94 points or 0.60% at 49,502.41, and the Nifty was up 119.20 points or 0.80% at 14,942.40.
All the sectoral indices ended in the green with auto, energy, infra, pharma, metal, and PSU Bank indices adding 1-3 percent. BSE Midcap and Smallcap indices gained nearly a percent each.
“Domestic bourses continued to ride on its optimistic wave mirroring strong across-the-board buying with metals, auto and pharma stocks leading the rally. US job growth significantly slipped its April forecast signalling sluggish momentum in the labour market while a cyber attack hiked the US oil prices,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Despite a decline in April auto sales numbers due to the impact of COVID lockdowns, the auto sector managed to stay afloat owing to its long term positive outlook,” Nair added.
Coal India, UPL, Hindalco Industries, IOC and Tata Motors were among the top gainers on the Nifty. Losers included Shree Cements, UltraTech Cement, Britannia Industries, Infosys and Hero MotoCorp.
Stocks & sectors
On the BSE, except IT, all the other sectoral indices ended in the green with the metal index adding 3 percent, while capital goods, power and healthcare indices rose 2 percent each.
Among individual stocks, a volume spike of more than 100 percent was seen in Torrent Power, Divis Lab and UPL.
Long buildup was seen in Alkem Laboratories, Torrent Power and Voltas, while short buildup was seen in PNB, Cholamandalam Financial Holdings and L&T Infotech.
More than 300 stocks including Tata Steel, Wipro and Sun Pharma hit a fresh 52-week high on the BSE.
Technical View
Nifty formed a small-bodied candle on the daily scale as it closed near its opening levels and continued to make higher lows from the last five sessions.
“Nifty has to hold above 14,850 zones to witness an up move towards 15,050 and 15,150 zones while on the downside support exists at 14,800 and 14,700 zones,” said Chandan Taparia of Motilal Oswal Financial Services.
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