Taking Stock: Sensex, Nifty rise a percent on S&P upgrade, GST revamp hopes

Maruti Suzuki, Nestle, Hero MotoCorp, Bajaj Finance, Bajaj Auto were among biggest gainers on the Nifty, while losers were ITC, Tech Mahindra, Eternal, L&T, NTPC.

Except IT, media and power, all other sectors ended in the green with the Auto index up 4 percent, consumer durable index up 3 percent, realty up 2 percent, while metal, FMCG, telecom private bank up 1-2 percent.

Also Read: Trump's tariff may hit Indian banks' corporate loan growth: Report

In stock-specific action, Nazara Technologies and Delta Corp sank 2 percent each on fears of attracting 40 percent GST, Vodafone Idea shares rose 5 percent as Q1 losses narrowed, Ashok Leyland shares jumped 8 percent on steady Q1 results, cement and auto stocks rallied up to 8 percent on GST rate rationalisation hopes, while banking and financial stocks rose up to 6 percent on S&P upgrade and GST reform push.

KEC International shares gained 7 percent on orders wins of Rs 1,402 crore, Glenmark Pharmaceuticals shares shed 3 percent as June quarter profit fell 86 percent, Inox Wind shares added 2 percent after Q1 profit surged 134 percent, Lemon Tree Hotels share price rose 5 percent as company to develop 5-star hotel in New Delhi.

More than 150 stocks touched their 52-week highs on the BSE, including Maruti Suzuki, Ashok Leyland, Hyundai Motor, TVS Motor, JK Cement, M&M, UltraTech Cement, Aditya Birla Capital, Maharashtra Scooters, Eicher Motors, Interglobe Aviations, Max Financial, Dalmia Bharat, Indian Bank, Sai Life Sciences, Apollo Hospitals, Nuvoco Vistas, Muthoot Finance, JM Financial, among others. Click to View More

Outlook for August 19

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices bounced back sharply. The Nifty ends 251 points higher, while the Sensex was up by 696 points. Among sectors, Auto and Consumer indices outperformed, with Auto gaining 4% and Consumer up by 3.30%. Despite strong market sentiment, the IT index registered intraday profit booking at higher levels. Technically, after a gap-up open, the market witnessed intraday selling pressure at higher levels. However, it succeeded in closing above the 20-day SMA (Simple Moving Average) or 24,750/81000, which is largely positive.

We believe that the short-term market outlook is positive, but buy on intraday dips and sell on rallies would be the ideal strategy for day traders. On the downside, 24,800/81000 and the 20-day SMA of 24,750/80800 would be key support levels, while 25,000 (50-day SMA)/81700 and 25,100/82000 could act as crucial resistance areas for the bulls. However, below 24,750/80800, the uptrend would become vulnerable. In that case, traders may prefer to exit their long positions.

Rupak De, Senior Technical Analyst at LKP Securities

Nifty opened with a gap-up but faced initial resistance at 25,000, leading to an intraday decline due to profit booking at higher levels. The sentiment, however, remains positive, with the potential to revisit 25,000 in the coming days.

Immediate support is placed at 24,800, below which the index may drift towards 24,500. On the higher side, a decisive move above 25,000 could trigger a larger rally in the market.

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.