Late recovery helps Sensex, Nifty close higher for 8th consecutive session
Equity benchmarks managed to extend uptrend for the eighth consecutive session Monday, with the Nifty reclaiming 10,400 level intraday led by late rebound in banking & financials. The market opened lower after the S&P reaffirmed India rating and weak Asian cues, but recouped losses in last hour of trade.
The 30-share BSE Sensex rose 45.20 points to 33,724.44 and the 50-share NSE Nifty gained 9.80 points at 10,399.50.
The market continued its uptrend but there could be volatility in coming sessions ahead of expiry of November derivative contracts, experts suggest.
“First half of the week would be very important for the market as we expect some volatility to pick up and hence, we may see some clear moves thereafter,” Sameet Chavan, Chief Analyst- Technical Derivatives, Angel Broking told Moneycontrol.
According to him, the bullish momentum can be witnessed only above resistance of 10,405. On the flipside, 10350 – 10307 would now be seen as a key support zone; because, violation of this may apply brakes on the recent optimism.
The broader markets outperformed benchmarks with the Nifty Midcap rising half a percent to end at record closing high. The market breadth was positive as about three shares advanced for every two shares declining on the BSE.
Nifty Bank also ended at fresh record closing high of 25,891.95, up 0.44 percent. Axis Bank was up 2.55 percent as The Essar Group will repay debt of various financial institutions including Axis Bank through BPO business (Aegis) sale proceeds.
HDFC Bank, SBI, Kotak Mahindra Bank and Yes Bank gained 0.4-1 percent.
L&T rose half a percent as its construction subsidiary has bagged orders worth Rs 3,572 crore under transportation infrastructure, metallurgical & material handling, power transmission & distribution, and buildings & factories segments.
Oil India was up 1.3 percent and ONGC rallied 1.7 percent. Credit Suisse upgraded Oil India to outperform from neutral and raised target price to Rs 425 while it maintained outperform rating on ONGC with increased target price at Rs 220 (From Rs 190 per share).
“Oil around USD 60 per barrel is a sweet spot for both ONGC and Oil India with strong earnings and low subsidy risk in FY19,” the research house said while raising EPS estimates for ONGC/OIL for FY18/19 by 8/2 percent and 10/9 percent, respectively.
Oil marketing companies – HPCL, BPCL and IOC were under pressure, falling 0.5-1.5 percent on marketing margin concerns.
NTPC, Bharti Infratel and Zee Entertainment among others gained 2-3 percent whereas Infosys, Tata Motors, Adani Ports, IndusInd Bank and Ambuja Cements fell around a percent each.
Mindtree jumped 7 percent as Credit Suisse upgraded the stock to outperform and increased target price on earnings growth hope.
Gujarat Heavy Chemicals surged 10 percent as DSP Blackrock Mutual Fund bought 9,50,528 equity shares at Rs 272 per share through a block deal on Friday.
Renewable energy stocks like Inox Wind, Suzlon Energy and Swelect Energy gained 6-11 percent while real estate stocks – Indiabulls Real, Mahindra Lifespace, Nitesh Estates and Peninsula Land surged 6-18 percent.
