Indian market ended with healthy gains on August 12 as the risk appetite of investors improved amid positive global cues.
Global sentiment improved after data showed the pace of US inflation slowed and UK GDP numbers rebounded.
US consumer price inflation print came at 5.4 percent YoY in July. UK GDP grew by 4.8 percent in the April-June quarter as activity and demand rose with the easing of COVID restrictions.
Benchmarks the Sensex and the Nifty hit their fresh record highs of 54874.1 and 16,375.50, respectively, during intraday trade. At the end of the session, Sensex was 318 points, or 0.58 percent, up at 54,843.98 and Nifty was at 16,364.40, gaining 82 points or 0.50 percent.
Mid and smallcaps resumed their upward march and outperformed the frontline stocks. The BSE midcap and smallcap indices closed 1.07 percent and 1.97 percent higher, respectively.
The overall market-capitalisation of BSE-listed firms jumped to nearly Rs 239 lakh crore from Rs 237 lakh crore in the previous session, making investors richer by Rs 2 lakh crore in a day.
Sectors & stocks
About 190 stocks, including Bharti Airtel, Infosys, HCL Tech, Bata India, Tech Mahindra, Vedanta, Indoco Remedies, KPIT Technologies, Laurus Labs, Larsen & Toubro Infotech, Tata Chemicals and VIP Industries
hit their fresh 52-week highs in intraday trade on BSE.
Nearly 450 stocks, including Suzlon Energy, HCC, Dhampur Sugar Mills, Nelco, Vakrangee and VIP Industries, hit their upper circuits.
BSE utilities index, with a gain of 3.11 percent, emerged as the top sectoral gainer followed by the power index that rose 2.57 percent.
BSE Industrials, IT, capital goods, realty and teck all rose more than a percent each. BSE Energy (down 0.16 percent) was the only sectoral index that ended in the red.
Tech view
The Nifty came out of its range of the previous few sessions and follow-up buying was seen at higher zones.
It formed a bullish candle on the daily frame and gave its highest daily close with gains of 82 points.
"Now it has to hold above 16,300 to witness an up move towards 16,500, while on the downside, support is intact at 16,250 and 16,150 levels," said Chandan Taparia, Vice President and Derivatives Analyst, Motilal Oswal Financial Services.
"As the Nifty sustained above the level of 16,350, the market is expected to gain momentum, with an upside move till 16,450-16,500 level. Momentum indicators like RSI and MACD are hinting at positive sentiment in the market," said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.
What should you do on Friday?
Analysts believe the market may extend its gains but they advise sticking to the stock-specific approach as there may be occasional volatility in the market due to profit-booking.
Here’s how experts foresee the market moving on August 13:
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
On the daily charts, the index has formed a range breakout formation which suggests the continuation of an uptrend wave in the near future.
We are of the view that 16,280/16,220 would be a key support level for trend-following traders. Above this, the range breakout formation is likely to continue up to 16,400/16,475 levels.
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
The hourly upper Bollinger Band has started moving higher after a contraction phase, which is making room for the price action on the upside, whereas the Bollinger Bands on higher time frames are already in expansion mode.
Structurally, the rally is developing as an impulse on the upside and is expected to continue with the upward trajectory. Thus on the higher side, 16,400-16,450 will be the initial area to watch out for with the potential to head higher to 16,800. On the other hand, 16,200-16,160 will continue to act as a crucial support zone.
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.
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