Taking Stock: PM Modi's pep talk at global event lifts sentiment; Nifty reclaims 10,800 levels

"The bulls were back in action after yesterday’s fall, thanks to upbeat global markets. The positive bias extended further, in response to the PM’s speech at the India Global Week Summit wherein he shared that we’re seeing green shoots of economic recovery and story of global revival will have India play a leading role," Ajit Mishra, VP - Research, Religare Broking Ltd told Moneycontrol.

Sectorally, the action was seen in metals, finance, banks, and energy stocks while profit-taking was visible in FMCG, power, capital goods, and oil & gas.

On the broader market front – the S&P BSE Midcap index rose 0.07 percent while the S&P BSE Small-cap index rose 0.21 percent, underperforming the benchmark indices.

Top Nifty gainers included names like Tata Steel, SBI, Bajaj Finance, and Hindalco Industries.

Top Nifty losers were Tech Mahindra, ONGC, Coal India, and Bharti Infratel.

Stocks & Sectors:

Sectorally, the action was visible in the S&P BSE Metal index that was up 2.1 percent, followed by the S&P BSE Finance index that rose 1.5 percent, and the S&P BSE Bankex closed with gains of 1.4 percent.

Selling pressure was seen in the S&P BSE FMCG index that was down 0.35 percent, followed by the S&P BSE Power index that was down 0.34 percent, and the S&P BSE Capital Goods index fell 0.32 percent.

Volume spike of more than 100% was seen in stocks like Hindalco, Escorts, Muthoot Finance, GAIL India, Ambuja Cements, and Century Textiles.

Long buildup was seen in stocks like Escorts, MGL, and M&M Financial Services.

A short buildup was seen in stocks like Tata Chemicals, Coal India, and Cummins India.

More than 100 stocks on the BSE hit their fresh 52-week high that included names like Bharat Rasayan, Dixon Technologies, L&T Infotech, PI Industries, and Escorts.

Stocks in news:

Yes Bank stock jumped over 2 percent after the country's largest lender State Bank of India (SBI) said it will invest Rs 1,760 crore in the private lender.

Tejas Networks share price spiked 5 percent after Kedia Securities, owned by investor and trader Vijay Kishanlal Kedia, acquired 0.81 percent stake in the company for Rs 3.7 crore through open market transactions.

Escorts share price gained over 4 percent buoyed by the rural economy, which, as a sector, has largely remained unaffected by the COVID-19 pandemic.

Bharat Heavy Electricals stock gained 2 percent after the company successfully commissioned a 1.7 MW Solar PV Plant at Bina in Madhya Pradesh for the Indian Railways.

Aurobindo Pharma share price added almost 2 percent hitting 52-week high on July 9 after the company received US FDA nod for blood pressure drug, Verapamil Hydrochloride.

CG Power and Industrial Solutions stock fell almost 5 percent after Yes Bank sold 16.65 million shares, constituting 2.66 percent of the paid-up share capital, of the company in multiple tranches over the past few days, the lender said in a filing to stock exchanges.

Technical View

The index formed a bullish candle on the daily charts

The index has been respecting to its rising support trend lines and declines are being bought to form the higher market base.

The Nifty has to continue to hold above 10700 zones to extend its move towards 11000 then 11200 levels while key support exists at 10650 then 10550 levels, suggest experts.

India VIX fell down by 4.55% at 24.91 levels. Lower volatility suggests an overall bullish stance with buy on decline strategy could continue.

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