The S&P BSE Sensex gained momentum in the second half of trading session on Friday to close with gains of over 200 points, led by banking stocks. The Nifty50 formed a Bullish Engulfing Pattern on the daily charts and a Doji type of candle on the weekly scale.
“The Nifty gained over half a percent and reclaimed 10,800, thanks to a strong surge in index majors in last hour. Buying in index heavyweights mainly from the banking, FMCG and pharma space gradually pushed the index higher,” Jayant Manglik, President, Religare Broking Ltd.
“We believe Nifty would extend this positive bias but recovery in broader market is equally essential. We expect private banking and financials counters to do well along with select pharma and FMCG majors,” he said.
Manglik further added that traders should prefer these sectors for fresh longs while the recovery in PSU banks and metal should be used to reduce long positions if any.
On the weekly scale, the S&P BSE Sensex closed marginally higher with gains of 0.19 percent while the Nifty50 which bounced back from lows closed flat. Top Nifty gains on weekly basis include names like ICICI Bank (up 6.4 percent), HDFC (up 4.3 percent), BPCL (up 3.6 percent), Bajaj Finserv (up 3.5 percent), and HDFC Bank (up 2.9 percent).
Losers for the week include names like UPL which slipped 8.6 percent, followed by Hindalco which was down 6.5 percent, and Coal India dropped by 5.2 percent.
Sectorally, the Nifty Bank closed 1.3 percent higher for the week, followed by the Nifty Metal index which rose 3.1 percent, and the Nifty PSU Bank index gained 2.8 percent.
On the losing side, the Nifty IT index slipped 2.4 percent, followed by the Nifty Junior Index which fell 1.3 percent, and the Nifty Auto index was down 0.8 percent. The Nifty Midcap index slipped 1.1 percent while the Nifty Smallcap index was down 2.5 percent.
Stocks in news:
Shares of agrochemical maker UPL Ltd declined 1.1 percent on Friday after hitting their lowest since 29 December 2016. The stock fell below a support at Rs 640.2, the 86.4 percent Fibonacci projection level of the downtrend from 1 August 2017 high to 6 December 2017, suggesting a move towards the next support at Rs610.6, the 100 percent projection level, said a Reuters report.
Trend Intensity indicator rose to 17, suggesting the stock is in early stages of a new downtrend. The stock’s RSI line has faced resistance near 50 level for the last two months, seen bearish for the stock.
A consortium of Capacit'e Infraprojects, Tata Projects Limited and CITIC Construction has received letter of acceptance from Mumbai Housing and Area Development Board (a MHADA Unit) for a total contract value of Rs 11,744.26 crore. The stock erased most of its intraday gains and closed 0.87 percent lower.
MTNL share price rallied 7.8 percent after CNBC-TV18 reports quoting NewsRise that Department of Telecommunication may discuss the revival plan for BSNL and MTNL with the Prime Minister Office today.
Shares of IDBI Bank Ltd gained 2 percent after The Economic Times reported that the government is planning to sell 40 percent stake in the bank to Life Insurance Corp. of India Ltd.
AstraZeneca Pharma India Limited (AZPIL) announced that it has received Import & Market permission for Durvalumab (ImfinziTM) in India by the Drug Controller General of India (DCGI). The stock closed 9.3 percent higher.
In other news/Global Update:
European markets were trading higher amid uncertainty over whether OPEC would manage to increase crude output at a meeting in Vienna later in the day. Britain's FTSE and France's CAC were up 0.7 percent at the time of writing this article.
Asian markets ended mixed following negative close on Wall Street. Investors remained concerns about the trade dispute between the US and China.
Saudi Oil Minister Khalid Al-Falih said he proposed to increase oil supply by 1 mbpd. "1 mbpd supply will be distributed among nations based on their ability to produce." Roughly 2/3rd supply increases will come from OPEC countries, he said, adding OPEC will meet again in September & make adjustments as needed.
The issue of Fine Organics has fully subscribed on the third day its initial public offering (IPO) on last day today. The issue received bids for 68.52 lakh shares against the issue size of 53.65 lakh crore shares. The total issue was subscribed 1.28 times.
The initial public offer of railways consultancy firm RITES Ltd was subscribed 5231 percent till 3.30 pm on the last day of issue. The share sale to raise about Rs 466 crore received bids for 131.83 crore shares against the total issue size of 2.52 crore shares by 3.30 pm on Friday, as per data from the National Stock Exchange (NSE).