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Last Updated : Nov 07, 2019 05:24 PM IST | Source: Moneycontrol.com

Taking Stock: Booster plan for real estate, US-China trade truce help Sensex hit new high, Nifty ends above 12K

In terms of sectors, the action was seen in energy, metal, realty, and consumer durable sector while profit-taking was visible in the public sector, oil & gas, capital goods, and auto index.


The Sensex hit a fresh record high of 40,688 on an intraday basis, while the Nifty50 closed above 12,000 level for the first time since June 2019. Investors sentiment bolstered on the back of progress in US-China trade talks and a booster dose by the government for the real estate sector.

The Nifty50 is now just 91 points away from its record high of 12,103.

The final tally on D-Street – the S&P BSE Sensex rose 183 points to 40,653 while the Nifty50 rallied 46 points to close at 12,012. Sensex ended at fresh record closing high on Thursday.

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Finance Minister Nirmala Sitharaman on November 7 said the government will put in Rs 10,000 crore in the recently announced alternative investment fund (AIF) while State Bank of India and LIC would provide Rs 15,000 crore, taking the total revival package to Rs 25,000 crore.

The market took comfort in the fact that the proposed plan is better than the earlier one and more such measures could be in the offing to support the economy and revive investor sentiment.

"The proposed AIF is better than the earlier one since this also includes projects referred to NCLT,” Dr VK Vijaykumar, Chief Investment Strategist at Geojit Financial Service told Moneycontrol.

“This will be beneficial not only to the stressed real estate sector but also to the home finance and NBFCs which have lent to developers. The announcement also sends the signal that more economic reforms are in the offing,” he said.

Reserve Bank Governor Shaktikanta Das on November 7 said the central bank is closely monitoring the scam-hit PMC Bank situation and a forensic audit is underway. He also added that the RBI is closely monitoring non-banking financial companies (NBFCs).

On the global front, China and the United States have agreed to cancel, in phases, the tariffs imposed during their prolonged trade war, Reuters said in a report, quoting the Chinese commerce ministry.

In terms of sectors, the action was seen in energy, metal, realty, and consumer durable sector while profit-taking was visible in the public sector, oil & gas, capital goods, and auto index.

Top Nifty gainers: Sun Pharma, Bharti Infratel, and Indiabulls Housing Finance

Top Nifty losers: BPCL, Yes Bank, GAIL India, and UPL

Stocks & Sectors:

Sectorally, the S&P BSE Energy index was up 0.9 percent, followed by the Metal index which was up 0.95 percent, and the S&P BSE Realty index gained 0.78 percent.

On the losing front, the S&P BSE Public Sector index was down 0.76 percent, followed by the S&P BSE Oil & Gas index which was down 0.62 percent, and the S&P BSE Capital index fell 0.5 percent.

Broader markets outperformed – the S&P BSE Midcap index rose 0.69 percent, and the S&P BSE Smallcap index rose 0.54 percent.

Volume spike of 200-400 percent was seen in stocks like Max Financial, Piramal Enterprises, UPL, L&T Finance Holding, LIC Housing Finance, and Havells India.

Long Buildup: Max Financial, Colgate Palmolive, LIC Finance Holding

Short Buildup: UBL, Lupin, Apollo Tyres, and Bank of Baroda.

Stocks in news:

Real estate stocks rallied 1-5 percent, a day after Finance Minister Nirmala Sitharaman announced measures to boost the stressed sector. Finance Minister Nirmala Sitharaman on November 6 announced another set of measures to boost the beleaguered real estate sector and infuse confidence among hassled homebuyers.

Shares of Lupin ended over 4 percent lower after brokerage house CLSA maintained sell call on the stock and cut target to Rs 650 from Rs 660 per share.

Prakash Industries closed with gains of over 8 percent after the company emerged as the highest bidder for Bhaskarpara coal mine.

Shares of UPL shed more than 4 percent intraday after the company reported 67 percent fall in its September quarter numbers.

Share prices of YES Bank declined 3 percent on closing basis after Moody's placed the bank's ratings under review for downgrade.

Max Financial Services ended over 9 percent higher after brokerages remained bullish on the stock, expecting up to 36 percent return after Q2 earnings and terminating the agreement with Mitsui.

Technical View:

Nifty formed a Dragon Fly Doji formation on daily charts

It took support near its 5-Days EMA at 11,941 before bouncing back

5-Days EMA has been acting as crucial support for the index since 11 October

Nifty may retest record high in the coming session

Contrary to this, a close below 11,946 levels can bring back bears back into the game

If the index manages to sustain above 12,021, we may see good recovery towards 12,100-12,200 in the near term,

Three levels: 11,946, 12,021, 12,103

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First Published on Nov 7, 2019 05:01 pm
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