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Taking Stock: Indices end at record closing high; IT, realty stocks lead

More than 200 stocks including Oberoi Realty, Asian Paints, Persistent Systems, Kolte-Patil Developers, IRCTC, Ajmera Realty hit a 52-week high on the BSE.

September 06, 2021 / 04:15 PM IST

Indian benchmark indices ended higher for the third straight session and posted a record closing high on September 6, helped by IT and realty stocks.

At close, the Sensex was up 166.96 points or 0.29% at 58,296.91, and the Nifty was up 54.20 points or 0.31% at 17,377.80.

"Positive global markets and strong support from IT and realty stocks, aided domestic markets to trade modestly higher. Hopes of continued economic support by the Fed Reserve due to weak US job data and talks of more stimulus in Japan and China boosted global markets. Economic normalisation attracted buyers in realty stocks, while safe-haven IT stocks continued to lead the upbeat market," said Vinod Nair, Head of Research at Geojit Financial Services.

Wipro, HCL Technologies, Infosys, Reliance Industries and Hindalco Industries were the top Nifty gainers. IOC, IndusInd Bank, ONGC, Britannia Industries and Kotak Mahindra Bank were among the top losers.

The BSE midcap index rose 0.18 percent and smallcap index gained 0.59 percent.

Close

Among sectors, except bank and FMCG, all other sectoral indices ended in the green with Nifty IT index up 1.5 percent.

Stocks & sectors

On the BSE, Realty index added 3 percent and IT index rose 1.5 percent. However, some selling was seen in the power, oil & gas, bank and FMCG names.

Among individual stocks, a volume spike of more than 200 percent was seen in PVR, ICICI Lombard General Insurance Company and Lupin.

Long buildup was seen in Indiamart Intermesh, NALCO and PVR while short buildup was seen in Hindustan Aeronautics, ICICI Lombard General Insurance Company and NMDC.

More than 200 stocks, including Oberoi Realty, Asian Paints, Persistent Systems, Kolte-Patil Developers, IRCTC, Ajmera Realty hit a 52-week high on the BSE.

Technical View

Nifty formed a small-bodied bearish candle on the daily scale as it closed lower than its opening levels but it continues forming higher highs since the last seven sessions in a row.

"It has to continue to hold above 17,350 to extend the move towards 17,500 and 17,777 zones, while on the downside support is seen at 17,250 and 17,050 levels," said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for September 7

Rohit Singre, Senior Technical Analyst at LKP Securities:

The index opened a day with a good gap but showed a range-bound session and closed a day at 17,378 with gains of half a percent. Index again shifted its support to 17,300-17,200 zone and any dip around mentioned levels will be fresh buying opportunity.

If it manages to hold the above-said levels we may see the extension in the current up move towards 17,500 zone, where traders can lock their gains as 17,500 will act as a strong hurdle. If it sustains above 17,500 zone, then fresh doors will open for 18k mark.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research:

The market witnessed some lacklustre movement and an attempt to hold the level around the Nifty 50 Index level of 17,400. The market shows that it is going to be crucial for the short-term scenario to sustain above the 17,250 level.

If the market is able to sustain the level of 17250, market to witness higher levels of 17,450-17,500. The momentum indicators like RSI, MACD indicating a positive outlook to continue.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:

The Nifty had a gap up opening on September 6, however, couldn’t build upon the early gains. In fact, the index traded in a narrow range throughout the day & consolidated its gains. The sideways action is allowing the overbought momentum indicator on the hourly chart to cool off.

On the downside, the junction of 20-hour moving average & lower end of a rising channel on the hourly chart, which is near 17300, is crucial near term support. As long as the index trades above 17300, the short term trajectory is expected to remain positive & the index can head towards 17500 & 17630 in the short term.

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 advises users to check with certified experts before taking any investment decisions.
Rakesh Patil
first published: Sep 6, 2021 04:15 pm

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