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Taking Stock: Sensex, Nifty scale new highs on positive global cues; metal, pharma rally

The broader market edged past the benchmarks, with BSE midcap and smallcap indices gaining 1.5 percent each

August 30, 2021 / 04:56 PM IST

Indian markets started the week on a strong note to gain over a percent to scale new highs on August 30 supported by positive global cues as Federal Reserve Chair Jerome Powell's stopped short of giving a clear signal on pairing economic support.

At close, the Sensex was up 765.04 points, or 1.36 percent, at 56,889.76, and the Nifty was up 225.80 points, or 1.35 percent, at 16,931.

"Indices and stocks surged through the day on positive global cues buoyed by the Fed commentary. The rally today was pretty much broad-based as expectations on the first quarter GDP numbers slated to be released tomorrow aided investor sentiment," S Ranganathan, Head of Research at LKP securities, said.

The rally gathered momentum in the afternoon trade, as indices rose 1.5 percent with several stocks across sectors participating in the rally, Ranganathan added.

Bharti Airtel, Divis Labs, Axis Bank, Tata Steel and Coal India were the top Nifty gainers. Tech Mahindra, Eicher Motors, Nestle, Infosys and TCS were among the top losers.

Close

The broader market outperformed the benchmarks, with BSE midcap and smallcap indices rose 1.5 percent each.

Barring IT, all other sectoral indices ended in the green, with the Nifty Bank, metal, pharma and PSU Bank rising 2 percent each.

Stocks & sectors

IndexPricesChangeChange%
Sensex60,077.8829.41 +0.05%
Nifty 5017,855.101.90 +0.01%
Nifty Bank38,171.25340.95 +0.90%
Nifty 50 17,855.10 1.90 (0.01%)
Mon, Sep 27, 2021
Biggest GainerPricesChangeChange%
Maruti Suzuki7,403.45451.20 +6.49%
Biggest LoserPricesChangeChange%
HCL Tech1,295.20-63.00 -4.64%
Best SectorPricesChangeChange%
Nifty Auto10765.20336.20 +3.22%
Worst SectorPricesChangeChange%
Nifty IT36034.40-1068.90 -2.88%

On the BSE, except IT index all other indices ended in the green bank, oil & gas, metal, realty and power indices up 2 percent each.

Among individual stocks, a volume spike of more than 500 percent was seen in Indiamart Intermesh, Polycab India and Indian Energy Exchange.

Long buildup was seen in Indiamart Intermesh, Polycab India and Syngene International, while short buildup was seen in Balkrishna Industries and Oracle Financial Services Software.

More than 200 stocks, including Tata Consumer Products, SBI Life Insurance, Polycab India and Fortis Healthcare, hit a 52-week high on the BSE.

Technical View

The Nifty formed a strong bullish candle on the daily scale with higher highs-higher lows on the lower time frame.

"It has to continue to hold above 16,800 zones to extend the move towards 17,000 and 17,200 zones, while on the downside, support is seen at 16,700 and 16,500 levels," said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for August 31

Rohit Singre, Senior Technical Analyst, LKP Securities

A strong move was witnessed on the first day of the week and the index closed on fresh highs at 16,931 with gains of nearly one and a half percent forming a strong bullish candle on the daily chart.

The index reached its immediate target of 17,000, so traders should lock some gains near the mark. Fresh buying is suggested on a dip near 16,850.

Immediate support for the Nifty is coming near 16,850-16,770 zone and if manages to hold above the level, we may see the index breach 17,000. Resistance is coming near the 17,000-mark.

Sachin Gupta, AVP Research, Choice Broking

After a gap-up opening, the Nifty continued the upside move and set a new lifetime high at 16,951.5. The index gained more than 200 points to close at 16,938.30, while Bank Nifty ended at 36,347.65, up 2 percent.

All the sectoral indices closed in the green except the Nifty IT, which was down 0.6 percent.

Moreover, the index has also closed above the upper band of the Bollinger formation, which suggests a bullish presence in the counter.

The index has been trading above all the important key indicators, which adds strength. The Nifty has immediate support at 16,700, while resistance may come around 17,000.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities

Key benchmark indices witnessed a spectacular rally, with the Nifty rallying more than 200 points after the breakout of 16,700. The texture of the breakout suggests that the uptrend wave is likely to continue in the near future. For the day traders, support has shifted from 16,700 to 16,800-16,850.

On the flip side, markets may take a pause near 17,000-17,050 due to an extended rally, while intraday charts suggest the market is in an overbought situation. As long as the index holds 16,800, the uptrend formation could continue up to 17,000-17,050. On the downside, the uptrend will be vulnerable below 16,800.

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: Aug 30, 2021 04:56 pm

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