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Terrific Tuesday! Sensex rallies by over 700 points; Nifty above 11K

Sectorally, the action was seen in energy, banks, consumer durables, healthcare, and oil & gas stocks while mild profit-booking was visible in IT space.

 

The bulls returned in force to push the benchmark indices above crucial resistance levels on August 4, as the S&P BSE Sensex reclaimed 37,000 while Nifty50 closed just a shade below 11,100.

The S&P BSE Sensex rose 748 points to close at 37,687 while the Nifty50 closed 203 points higher at 11,095.

Tracking positive global cues, and strong buying in index heavyweights both the Sensex and the Nifty surpassed crucial resistance levels.

"Indian benchmark indices ended the day with gains with positivity emerging post the RBI decision to approve the new CEO for HDFC Bank. Private Banks and RIL supported the gains in the benchmark indices. Global cues were also mostly positive, and aided the markets, following better US manufacturing data," Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.


"With Indian exports reaching almost the same level on a YoY basis, economic activities are showing signs of revival, which offset concerns about the increasing viral infections and the uncertainties that this brings across. The markets may look to consolidate but as things stand, the current liquidity can ensure that any corrections will be bought into," he said.

Sectorally, action was seen in energy, banks, consumer durables, healthcare, and oil & gas stocks while mild profit-booking was visible in IT space.

On the broader markets front, the S&P BSE Midcap index rose 1.02 percent while the S&P BSE Smallcap index was up by 1.23 percent.

Top Nifty gainers included Maruti Suzuki, HDFC Bank and RIL.

Top Nifty losers included HCL Technologies, IndusInd Bank and Tech Mahindra.

Stocks & Sectors

Sectorally, the S&P BSE Energy index rose 5.6 percent followed by the S&P BSE Finance index that was up 2 percent and the S&P BSE Realty index closed with gains of 2.01 percent.

A volume spike of more than 100 percent was seen in stocks like HDFC Bank, ZEE Entertainment, BPCL, Voltas and Exide Industries.

Long buildup was seen in stocks like Apollo Tyre, Voltas and MRF.

Short buildup was seen in stocks like Bandhan Bank, Shriram Transport, and MFSL.

Alkem Laboratories, Torrent Pharma, L&T Infotech and MCX India were among more than 100 stocks on the BSE hit a 52-week high.

Stocks in news

HDFC Bank’s announcement of RBI’s nod for new CEO helped the stock gain 4 percent.

Reliance Industries surged 7 percent to post the biggest one-day gain in more than three months.

Auto stocks move higher on hopes of demand recovery and Maruti Suzuki up over 3 percent.

Varun Beverages up nearly 5 percent after earnings.

Godrej Consumer fell 1 percent after it reported Q1 domestic volume growth that was below estimates.

IT Stocks slipped after the US President Donald Trump signed executive order to prioritise American workers.

Technical View

The Nifty formed a bullish candle on the daily charts. It recovered most of the losses seen on August 3.

The index negated the formation of lower high - lower lows of the last three trading sessions which is a positive for the bulls.

Major trend of the index is positive and emergence of buying after the dips of 450 zones suggests that the bulls could be back on track, say experts.

“Now, if it managed to hold above 11050 zones then buying interest could emerge towards 11250 zones while on the downside support exists at 10900-10880 zones,” Chandan Taparia, Motilal Oswal Financial Services Limited said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com/SD solutions advises users to check with certified experts before taking any investment decisions.

Source - Moneycontrol.com

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