The market staged a remarkable recovery to gain a percent from the day’s low and hit new highs on March 6, as the 30-pack Sensex went past 74,000 points for the first time.
At close, the Sensex was up 408.86 points, or 0.55 percent, at 74,085.99, and the Nifty was up 117.70 points, or 0.53 percent, at 22,474, there best closing ever.
Earlier in the day, the Sensex and Nifty hit highs of 74,151.27 and 22,497.20.
After a weak start, market traded in the red for most of the session but final hour buying, especially in banking, IT and pharma names pushed them to new peaks.
Top Nifty gainers included Bajaj Auto, Kotak Mahindra Bank, Axis Bank, Bharti Airtel and SBI Life Insurance, while losers were Adani Enterprises, UltraTech Cement, NTPC, ONGC and BPCL.
Among sectors, bank index was up 1 percent, while pharma and IT indices were up 0.7 percent each. On the other hand, oil & gas, power and realty were down a percent each.
The BSE midcap index closed 0.6 percent down and smallcap index 2 percent lower.
Among individual stocks, a volume spike of more than 400 percent was seen in Mahanagar Gas, Pidilite Industries and L&T Finance Holdings.
A long build-up was seen in Tata Chemicals, Pidilite Industries and ICICI Prudential Life Insurance Company, while a short build-up was seen in Mahanagar Gas, Indraprastha Gas and L&T Finance Holdings.
Bajaj Auto, Bank of Baroda, BHEL, Canara Bank, Dixon Technologies, Dollar Industries, Godfrey Phillips, Jindal Stainless, JSW Holdings, Oil India, Pidilite Industries, Sun Pharma, Tata Chemicals, Tata Consumer Products, Tata Investment Corporation, Torrent Pharma, TVS Motor, Union Bank of India, Waaree Renewable, among the stocks that touched their 52-week high on the BSE. Click here for the full list
Outlook for March 7
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The Nifty opened on a weak note and witnessed a sharp decline during the first half while an equally sharp recovery in the second half helped the Nifty to close with handsome gains of 117 points. Intraday the Nifty recovered 250 points from the lowest point. The hourly moving averages placed in the zone 22360 – 22287 provided a strong support and the Nifty recovered sharply. We expect Nifty to continue with the upmove as the hourly momentum indicator has provided a fresh crossover which is a bullish sign. The immediate target is placed at 22600 – 22650. Today’s low of 22224 shall act as crucial support level and can also be used as a trialing stoploss for the long positions.
Bank Nifty has clearly been the leader during this rally, and we expect the momentum to continue. Dips towards 47800 – 47680 should be used as a buying opportunity. The Bank Nifty is likely to retest the previous all-time high of 48636.
The broader market i.e. Midcap and Smallcap Index though closed in the negative have recovered sharply. Crucial support zone for Midcap Index is placed at 48100 – 48000 and for the small cap index is placed at 15200 – 15100.
Aditya Gaggar Director of Progressive Shares
Extreme volatility was seen in today's trade with the morning session being dominated by bears and a steep fall in the Mid and Smallcap segments that further dented the market sentiments. Banking stocks led the rally in the 2nd half of the trading session providing support to the Index to recover and also a fierce recovery in the heavyweights addtionally fueled the rally which resulted in a new high and finally, the Index settled the day at 22,474.05 with gains of 117.75 points.
Among the sectors, BankNifty was the top gainer followed by IT while Media remained a laggard. Mid and Smallcaps also recovered but underperformed the Benchmark Index by correcting 0.52% & 1.96% respectively.
On the daily chart, the Index defended its support of 22,300 and formed a bullish engulfing pattern. We continue to hold our positive stance for the target of 22,600-22,650 while a level of 22,300 will remain a strong support point.
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