Positive domestic data, supportive global markets and expectation of a rate pause by the US Federal Reserve helped Indian benchmark indices extend the winning streak for the second consecutive day on June 13.
The Sensex added 418.45 points, or 0.67 percent, to close at 63,143.16 and the Nifty gained 114.70 points, or 0.62 percent, to end at 18,716.20.
The Sensex is 439.91 points and the Nifty 171.45 points away from their record highs, which they have been flirting with for some weeks now.
Investors will be tracking the US consumer price index data for May to be released later in the day for a cue to the Federal Reserve's interest rate decision due the next day.
Domestic data
India's retail inflation dropped for the fourth month in a row to a 25-month low of 4.25 percent in May from 4.70 percent in April, data released by the government on June 12 showed.
India's industrial output grew by 4.2 percent in April, significantly higher than that for March, when it slipped to a five-month low of 1.1 percent.
Stocks and sectors
The market crossed a milestone when tyre maker MRF’s crossed the much-awaited Rs 1 lakh mark after it opened a percent higher and touched Rs 1,00,050 on the NSE. The stock closed at Rs 99,900, up 0.94 percent from the previous day.
Cipla, Tata Consumer Products, Titan Company, Asian Paints and ITC were among the biggest gainers on the Nifty. Losers included Kotak Mahindra Bank, Adani Enterprises, HCL Technologies, M&M and Adani Ports.
All the sectoral indices ended in the green, with realty up 3 percent. FMCG, pharma, metal and PSU bank were up a percent each.
The BSE midcap index rose 1 percent and smallcap index added 0.8 percent.
A long buildup was seen in Tata Communications, Aditya Birla Fashion & Retail and Trent, while a short build-up was seen in IndiGo-operator InterGlobe Aviation, Container Corporation of India and BHEL.
Among individual stocks, a volume spike of more than 500 percent was seen in Zee Entertainment Enterprises, Oracle Financial Services Software and Trent.
Indusind Bank, L&T Finance Holdings, Kamat Hotels, Aurionpro Solutions, Prestige Estates Projects, IDFC First Bank, DLF, Heritage Foods, Trent, Usha Martin, Nestle India, Ultratech Cement, Ramco Cements and Man Infraconstruction were among the stocks to touch their 52-week high on the BSE.
Outlook for June 14
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty opened gap-up and closed around the day's highs. On the daily charts, we can see that the Nifty has resumed its upmove and defended the support zone of 18530-18500. The upmove can extend to 18,800 and then 18,889.
The momentum indicators on the daily and hourly time frame are providing divergent signals but price action is suggesting strength. In terms of levels, the day’s gap area in the range of 18,630–18,620 shall act as a crucial support zone, while 18,778–18,800 shall act as an immediate hurdle.
Bank Nifty witnessed buying interest from the support cluster of 44,000, which coincided with the lower end of the rising channel and also the 20-day moving average (43,980). We expect Bank Nifty to continue with the positive price action for the next few trading sessions. The short-term target is placed at 44,500.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
The market witnessed a spectacular rally towards the close as bullish bets on realty, metals, and oil & gas stocks aided the Sensex to close above the 630,00 mark. Moderating inflation and strong IIP growth numbers coupled with expectations that the US Fed could hold interest rates buoyed the sentiment.
Technically, the Nifty formed a bullish candle on daily charts, which is largely positive. For bulls, 18,600 would act as a sacrosanct support zone. As long as the index trades above it, the positive sentiment will continue till 18,800-18,850. The uptrend will be vulnerable below 18,600 and traders may prefer to exit long positions.
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