Sensex gains for 2nd day; ends 447 pts up at 50,297; auto, IT stocks rally

Broader markets outperformed the benchmark indices, highlighting underlying strength in the market. The S&P BSE MidCap and SmallCap indices ended 1.55 per cent & 1.6 per cent higher, respectively

Stock market updates: Volatility ran high in the domestic markets on Tuesday as investors tracked mixed signals from global peers and avoided taking aggressive bets in equities amid upward move in bond yields, yet again. 

European shares paused on Tuesday as investors sought to guess the bond market's next move, while weak German retail sales were a stark reminder of continued Covid-19 fallout on the region's biggest economy. Moreover, falls in Asian stockmarkets, after a senior Chinese official expressed wariness about the risk of asset bubbles in foreign markets, and a drop in oil prices also weighed on sentiment. 

The pan-European STOXX 600 share index edged 0.2 per cent higher, with Paris down, while Frankfurt and London eked out slim gains. In Asia, Chinese blue-chips slipped 1.3 per cent while Hong Kong's Hang Seng Index lost 1.2 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.33 per cent and Japan's Nikkei was down 0.8 per cent.

Against this backdrop, benchmark indices witnessed wild swings during the session today. The headline S&P BSE Sensex traded in a range of 600 points and hit an intra-day high and low of 50,425 and 49,807, respectively. At close, the index was quoting at 50,297 levels, up 447 points or 0.9 per cent. 

M&M zoomed nearly 5 per cent and settled the session as the top gainer on the Sensex, followed by NTPC, Bajaj Auto, Tech M, Infosys, TCS, and Maruti Suzuki, all up in the range of 3 per cent to 4 per cent. On the downside, ONGC, HDFC, PowerGrid, Dr Reddy's Labs, and SBI were the only losers, down 0.2 per cent to 3 per cent.

Meanwhile, on the NSE, the Nifty50 settled above the 14,900-mark, at 14,919 levels. The index was up 157 points or 1.07 per cent from Monday's close.

Broader markets outperformed the benchmark indices today, highlighting underlying strength in the market. The S&P BSE MidCap and SmallCap indices ended 1.55 per cent and 1.6 per cent higher, respectively.

On the sectoral front, only the Nifty PSU Bank index closed in the red for second straight day, down 0.04 per cent. On the higher side, the Nifty Auto and IT indices closed over 3 per cent higher each, while the Nifty Pharma, Realty, Private Bank, and FMCG indices ended up between 0.7 per cent and 1.5 per cent.

5:03 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive VP, Equity Technical Research at Kotak Securities

The market has formed a continuation formation followed by the formation of the Harami pattern which it had formed on Monday. This indicates bullishness for the market. The Nifty/Sensex closed between the bearish gap, which it had left between 15065-14919 / 50250-50991 last Friday. The market breadth was also encouraging as along with IT and FMCG we saw bullish activity in financials.  Based on the daily chart the Nifty/Sensex is heading for the minimum target of 15065/50750. On the other side, 14830/50100 and 14750/49800 would be major supports. The focus should be on Technology and FMCG stocks.”

 

 

4:56 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside bounce on Monday, Nifty continued its upside momentum on Tuesday and closed the day with handsome gains of 157 points. After opening on a positive note, nifty made an attempt to move up in the early part of the session. Intraday profit booking has triggered in the early mid part of the session and Nifty showed intraday weakness from the highs. Later on the market sustained the gains and more upside was seen towards the end. The opening upside gap has been filled completely during intraday dip.

 

A small positive candle was formed with minor upper and lower shadow. Technically, this pattern could be considered as a comeback of bulls from the lows. Further upside from here is expected to result in a reversal of recent down trend of the market.

 

Nifty is now placed at the verge of moving above and filling the opening downside (26 Feb) and upside (25 Feb) gaps- type of island reversal. Hence, the area of 14920-15065 is expected to be a crucial resistance zone for the market for short term and a sustainable move above 15100 is likely to reverse the trend meaningfully.

 

Nifty on the weekly chart has taken the support of 10 week EMA around 14350 levels and started to bounce up. Previously, this weekly short term moving average has offered good support for few occasions in past and the market flared up. Presently Nifty is showing sustainable upside bounce, which is likely to bring hopes for bulls for more upside.

 

Conclusion: The short term trend of Nifty continues to be positive and bulls seems gaining strength in the present upside bounce. The crucial overhead resistance to be watched around 15065 and a decisive move above this gap area could open chances of new highs for the market.

4:49 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Research, HDFC Securities

Indian benchmark equity indices ended higher for the second straight day, after recovering from selloff seen in the morning. At close the NSE Nifty 50 index gained another 1.07% to end at 14,919.

 

Nifty has entered the downgap area of 14919-15065 raising hopes of further upmove. Advance decline ratio also rose in line with the uppishness in the Nifty. 14782 on the downside is a crucial level to defend.

4:34 PM

TECH VIEW :: Sumeet Bagadia, Executive Director, Choice Broking

After a positive opening leading to a highly volatile trading session that saw an intraday high followed by an intraday low, the benchmark index recovered from its day’s loss and closed near to a high at 14919 with a gain of 150 points. Sectoral wise NIFTY Auto, NIFTY IT and NIFTY FMCG were the top performer sectors while NIFTY PSU was lagging amongst other sectors. Technically, the benchmark index has taken the support of its 50 Days Moving Average which shows a bounce back movement and based on which we can see a good move in it. Moreover, the Nifty has been trading in an Upward Rising Channel formation since the last many days which is a continuation formation and suggests an upside movement in the index. At present level, Nifty has a strong support at 14750 while upside resistance comes at 15070-15180.

4:18 PM

MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets extended rebound and gained over a percent amid excessive volatility. The benchmark started the day on a strong note, tracking firm global cues however profit-taking in the index majors, mainly from the banking pack, capped the upside as the session progressed. However, renewed buying in select heavyweights in the last hour helped the index to close around the day’s high. Consequently, Nifty settled above 14,900 levels; up by 1.1%. The broader market indices, midcap and smallcap, continued their outperformance and ended with strong gains of 1.6% each. On the sector front, all the indices ended in positive with IT and Auto leading the pack.

 

Markets are mirroring global indices and we expect this trend to continue in the coming sessions. Nifty is likely to fill the open gap but the performance of the banking index would be critical. We feel it’s prudent to continue with a stock-specific trading approach in the present market scenario while keeping a check on leveraged positions.

4:07 PM

TECH VIEW :: Rohit Singre, senior technical analyst at LKP Securities

Index again opened a day with gap & hold its bullish stream for second consecutive day and activated the bullish harami candle pattern which formed in yesterday session hinting we may see some more upside if index managed to save 14500 zone in the near term. On the immediate basis, index has support near 14800-followed by 14750 zone any dip near said levels will be again buying opportunity and resistance is coming near 15k mark

4:05 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Indian market witnessed a positive opening backed by a strong US market due to steady treasury bond yields, but market pared its gains as Asian peers traded weak. A quick recovery was seen towards the end of the session as investors hurried to buy on dips showing huge confidence & liquidity in the market. An improved outlook post-February auto sales numbers resulted in continued buying in auto stocks with IT sector also being a major contributor in the rally

4:00 PM

MARKET CLOSING COMMENT :: S Ranganathan, Head of Research at LKP Securities

Markets exhibited buoyancy today despite its share of volatility in Tuesday's afternoon trade. IT stocks and Auto stocks led the rally while the broader market saw keen interest in Paper stocks on rising product prices

 

3:54 PM

INDIA VIX ALERT

The volatility index ended 7.8 per cent lower at 23.6 levels.

3:52 PM

SECOR WATCH :: Fresh breakout in IT stocks take index higher

3:49 PM

SECOR WATCH :: Auto stocks rally for 2nd day

3:46 PM

Stocks that lifted Sensex today

3:43 PM

Sectoral trends on NSE at Close

3:41 PM

Sensex Heatmap at Close

3:34 PM

CLOSING BELL

The headline S&P BSE Sensex traded in a range of 600 points and hit an intra-day high and low of 50,425 and 49,807, respectively. At close, the index was quoting at 50,297 levels, up 447 points or 0.9 per cent. 

 

Meanwhile, on the NSE, the Nifty50 settled above the 14,900-mark, at 14,919 levels. The index was up 157 points or 1.07 per cent from Monday's close.