Monday, December 23, 2024 | 12:08 AM ISTEN Hindi

Sensex jumps 243 pts on late buying, Nifty reclaims 18,000; RIL gains 2%

CLOSING BELL: The BSE Sensex gained more than 600 points from the day's low; Tech Mahindra, Bharti Airtel and auto shares were the other major gainers on Wednesday.

SI Reporter New Delhi

Photo: Bloomberg

Stock Market Highlights: The key benchmark indices notched-up decent gains in late trades on Wednesday led by index heavyweight Reliance Industries. The S&P Sensex vaulted 243 points to 61,275, while the NSE Nifty reclaimed the 18,000-mark, settling with gain of 86 points at 18,016.

Earlier in the day, the Sensex slipped to a low of 60,750 tracking weak cues from the Asian peers, as a hotter-than-expected inflation in the US raised fears of more rate hikes. However, the BSE benchmark soon wiped-out losses, and surged to a high of 61,352 – up 602 points from the day’s low towards the fag end of the day.

"The US inflation, though it slowed down compared to the previous month, came in higher than expected at 6.4% YoY. Higher inflation, combined with a strong labour market, has raised concerns that the Fed will remain hawkish for an extended period. Despite a sluggish start in the domestic market, recovery in the IT and auto sectors contributed to a positive finish. A reversal in the FII pattern to net buying has also helped maintain optimism in the domestic market.", said Vinod Nair, Head of Research at Geojit Financial Services in a note.

Also read: 'Mutual fund ownership of Adani group stocks is not very high'

Among the Sensex 30 shares, Tech Mahindra zoomed nearly 6 per cent to Rs 1,071. Reliance Industries gained 2.2 per cent at Rs 2,431. Bajaj Finserv, Bharti Airtel, Tata Steel, Mahindra & Mahindra and Kotak Bank were the other major gainers. Nestle also moved up a per cent ahead of its Q3 results tomorrow. READ PREVIEW

On the other hand, Hindustan Unilever, ITC and Sun Pharma slipped over a per cent each.

The broader indices also moved in tandem with the benchmarks. The BSE Midcap index advanced 0.7 per cent, and the Smallcap added 0.4 per cent.

Sectorally, the IT, Auto and Realty indices gained over a per cent each. The overall breadth was marginally positive, with nearly 1,800 shares advancing versus 1,670 declining stocks on the BSE.

Also read: Defence stocks a good long-term bet, say analysts

In the broader markets, Torrent Power soared over 10 per cent to Rs 504 after the company reported a 88 per cent growth in consolidated net profit at Rs 695 crore on a YoY basis. The company also announced an interim dividend of Rs 22 per share, including a special dividend of Rs 13 per share. READ MORE

On the other hand, Bharat Forge shed 4.4 per cent a day after reporting weak Q3 performance. The company's overseas operations posted an EBITDA loss of Rs 62 crore in December quarter due to ramp up related issues of the new Al forgings capacities in Germany and the US. READ MORE

4:18 PM

F&O analysis :: 'Traders should expect tug of war to continue for Thursday's weekly expiry'

The Nifty Index today saw follow-on Put writing continued from yesterday at the 17,800, 17,900 and 18,000 levels. The 18000 PE, in fact, saw some late shorting towards the end of the session propelling the Nifty to a strong close. It is interesting to note though that the 18,100 and 18,200 Call writers did not unwind their positions even after the 100 point rally in Nifty, signalling the presence of some resistance at this level.

The congestion zone in Nifty is at the 18,260-18,270 mark, which these writers are expecting will hold for this week's expiry tomorrow. Another interesting fact from the OI charts is that the 18000 CE of the monthly expiry also continues to have the highest OI on the calls side even after Nifty breached this level today.

Bank Nifty saw huge shorting of the 41500 PE and unwinding of the 41500 CE which also made Bank Nifty move up in the later part of the day.

Traders should expect the tug of war to continue for tomorrow's expiry unless the call writers run for cover due to a gap-up in Nifty. If the gap-up happens and the PCR is also seen trading above the 1.25 mark, traders can look to initiate an ITM short straddle on the call side with a bought put option for protection.

Views by: Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform

4:14 PM

Comment :: 'Global cues may cap upside, recommend staying selective'

Markets edged higher for the second consecutive session and gained nearly half a percent amid mixed cues. Weakness in the global markets was weighing on the sentiment in early trades but resilience in the select heavyweights pushed the index gradually higher. Consequently, Nifty reclaimed the 18,000 mark, after struggling for three weeks. On the sectoral front, IT, auto and realty posted decent gains while defensive viz. pharma and FMCG traded subdued.

We reiterate our positive view on the market however intermediate consolidation/profit taking on the global front and restricted participation within the index heavyweights could keep the momentum in check. We thus recommend staying selective and preferring exposure to the counters which are leading from the front.

Views by: Ajit Mishra, VP - Technical Research, Religare Broking

4:11 PM

Tech View :: 'Nifty has given a falling channel breakout on the daily timeframe'

Nifty has given a falling channel breakout on the daily timeframe, suggesting a bullish reversal of the price trend. The trend looks positive now for the near term, with the 14 DMA sitting below price. The momentum indicator RSI is in support of the price trend, with a current reading above 50. Over the near term, the index may move up towards 18350–18400. On the lower end, support is placed at 17950.

Views by: Rupak De, Senior Technical Analyst at LKP Securities

4:08 PM

Tech View :: 'Nifty Bank faces immediate hurdle at 42,000'

The BANK NIFTY index witnessed buying from the lower level and the bulls managed to hold the support of 41,400. The index on the upside immediately faces a hurdle at 42,000 where the highest open interest is built up on the call side. The index remains in a buy-on-dip mode and once surpasses the level of 42,000 will witness a sharp short covering towards the 43,000-43,500 levels.

Views by: Kunal Shah, Senior Technical Analyst at LKP Securities

4:05 PM

Comment :: 'Reversal in FII pattern has helped maintain optimism in the domestic market'

The US inflation, though it slowed down compared to the previous month, came in higher than expected at 6.4% YoY. Higher inflation, combined with a strong labour market, has raised concerns that the Fed will remain hawkish for an extended period. Despite a sluggish start in the domestic market, recovery in the IT and auto sectors contributed to a positive finish. A reversal in the FII pattern to net buying has also helped maintain optimism in the domestic market.

Views by: Vinod Nair, Head of Research at Geojit Financial Services

3:52 PM

Bond market :: Yields on 10-year G-Sec ease on Wednesday

3:51 PM

Rupee closing :: INR settles lower at 82.805/$

3:49 PM

BSE Snapshot :: Market breadth favours bulls with slim margin

3:48 PM

Top losers on the BSE at this hour

3:47 PM

Top gainers on the BSE at closing

3:45 PM

Buzzing stock :: Finolex Cables leaps nearly 13%

Shares of Finolex Cables hit over four-year high of Rs 697 in Wednesday’s intra-day trade. It traded at its highest level since June 2018 and had hit a record high level of Rs 750 on January 19, 2018.

3:43 PM

Buzzing stock :: Bharat Forge slips on slew of brokerages' downgrade

In Q3FY23, the company’s consolidated net profit declined 81 per cent year-on-year (YoY) to Rs 78.72 crore on account of higher expenses. It had posted a profit of Rs 422 crore in the year ago quarter (Q3FY22) and Rs 142 crore in Q2FY23. Consolidated revenue grew 40 per cent YoY and 9 per cent QoQ to Rs 3,353 crore.

3:41 PM

Buzzing stock :: Eicher Motors jumps over 4% as O3 nos beat estimates

Shares of Eicher Motors, the maker of Royal Enfield motorcycles, rallied 5 per cent on the BSE in Wednesday’s intra-day trade in an otherwise subdued market after the company posted a better-than-expected 62 per cent year-on-year (YoY) jump in net profit at Rs 741 crore, on back of higher motorcycle sales and other income. On sequential basis, net profit grew 5.7 per cent.