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Taking Stock | Market close at record high on all-round buying; investors richer by Rs 2.2 lakh crore in a day

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© Nishant Kumar Taking Stock | Market close at record high on all-round buying; investors richer by Rs 2.2 lakh crore in a day

The Indian market witnessed an all-around buying on September 15 that pushed the key equity indices to record highs yet again.

Frontline indices the Sensex and the Nifty hit their fresh record highs of 58,777.06 and 17,532.70 in intraday trade.

They managed to hold on to the gains to close at new highs. The Sensex ended at 58,723.20, up 476 points, or 0.82 percent, while the Nifty closed 139 points, or 0.80 percent, higher at 17,519.45.

Investors embarked on across-the-board buying as risk appetite improved after the US inflation numbers soothed concerns over rising prices. The market now seems to be anticipating a prolonged low-rate

regime by the US Federal Reserve.

At home, the government’s announcement for the telecom and auto sectors further boosted sentiment.

The Union Cabinet announced a four-year moratorium for on the payment of the Aggregated Gross Revenue (AGR) dues by telecom companies.

The cabinet also cleared a Rs 26,058-crore production-linked incentive scheme for the auto and drone sectors.

Second-rung indices mirrored the benchmarks. The BSE midcap and smallcap indices, too, hit their fresh record highs of 25,241.55 and 28,298.53 in intraday trade.

At close, the BSE midcap index was 0.65 percent up at 25,215.96 and the smallcap index was up 0.86 percent at 28,284.07.

The overall market capitalisation of BSE-listed firms jumped to Rs 259.7 lakh crore from Rs 257.5 lakh crore in the previous session, making investors richer by Rs 2.2 lakh crore in a day.

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, expects the Nifty to top 18,000 in the medium term.

“Last matured support for the index is seen at 17,080, above which, we remain positive. Options concentration is seen at 17,000 Put and 17,500 Call–this is indicative of some resistance at 17,500-17,600 levels. Value is seen in auto and midcap banking stocks. We expect outperformance in the midcap space to continue,” said Agrawal.

Stocks and sectors

In the 30-share pack Sensex, 21 stocks ended in the green, with NTPC, Bharti Airtel, HCL Tech, Titan and SBI as the top gainers.

On the flip side, Axis Bank, Asian Paints, UltraTech Cement, Nestle and Sun Pharma were the top laggards among the Sensex stocks.

The BSE telecom index jumped 3.45 percent, while the BSE utilities clocked a gain of 2.29 percent. BSE power (up 2.01 percent), teck (up 1.81 percent), IT (up 1.71 percent) and consumer durables (up 1.62 percent) rose up to 2 percent.

On the NSE, the PSU bank index jumped 2.83 percent but the media index fell 1.55 percent owing to profit-booking a day after clocking strong gains.

Some 265 stocks, including TCS, Tech Mahindra, Titan, Bharti Airtel, HCL Tech, Larsen & Toubro, Larsen & Toubro Infotech, L&T Technology Services, NTPC, Adani Transmission, Cyient, Hindalco Industries, Dr. Lal PathLabs, InterGlobe Aviation and Mindtree, hit their fresh 52-week highs in intraday trade on BSE.

More than 400 stocks, including Zensar Technologies, Reliance Power, Jain Irrigation Systems, Varroc Engineering, Lokesh Machines, California Software, MRO-TEK Realty, Patspin India and Lancer Container Lines, hit their upper circuits in intraday trade on BSE.

Tech view

The Nifty ended at a fresh closing high of 17,519.45 with gains of nearly one percent and formed a bullish candle on the daily chart.

It seems the index has given a bullish flag breakout on the daily chart, which is considered to be a bullish continuation pattern, said Rohit Singre, Senior Technical Analyst at LKP Securities.

“One can expect more upside if 17,400-17,300 levels are held… On the higher side, the immediate hurdle is at 15,600-15,700. Any dip near the mentioned support zone can be again a fresh buying opportunity,” said Singre.

After the 17,450 range breakout, the Nifty succeeded to close above 17,500, which indicates that the uptrend can continue to 17,575.

“Above this level, the index could rally up to 17,625, whereas trading below 17,450 may trigger a quick intraday correction to 17,400-17,350 levels,” said Shrikant Chouhan, Executive Vice President- Equity Technical Research, Kotak Securities.

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