Sensex extends rally to eighth day, ends 242 pts up; Auto, IT stocks shine

CLOSING BELL: The NSE Nifty 50 gained 83 points. In the broader market, Midcap and Smallcap indices outperformed with gains of 0.7 per cent and 0.6 per cent, respectively.

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Illustration: Binay Sinha

Stock Market Highlights: The key benchmark indices witnessed a firm trading session on Tuesday, backed by strong Q4 earnings, as investors await US Fed rate decision on Wednesday. The broader market outperformed with stronger gains compared to the benchmark. Sectorally, 17 off the 19 indices on the BSE ended with gains with energy, metal and IT topping the charts.

The S&P BSE Sensex rallied to a high of 61,486, and held steady for the major part of the trading session. Some profit-taking towards the close, saw the BSE benchmark pare gains, but still managed to settle 242 points higher at 61,355. In the process, the 30-share index has now rallied 1,788 points in the last eight straight trading sessions.

The NSE Nifty 50 touched a high of 18,180, and finished with a gain of 83 points at 18,148.

In the broader market, the BSE Midcap and Smallcap indices advanced around 0.7 per cent each as against the 0.4 per cent gain on the BSE benchmark.

Tech Mahindra was the top gainer among the Sensex 30 shares, up almost 3 per cent. NTPC, Tata Steel, Maruti and Infosys were the other major gainers, up over 2 per cent each. On the other hand, Sun Pharma, UltraTech Cement, Bharti Airtel and Tata Motors slipped over a per cent each.

Among sectors, the BSE Metal and Power indices were up around 1.5 per cent each. The Energy, IT and Oil & Gas indices too spurted over a per cent each.

Shares of Adani Group were in focus as the companies announced the Q4 earnings. Technical charts indicate a positive trend for select stocks in the near term. Read Analysis

4:19 PM

Tech View :: Nifty will attempt to touch 18,200

The Nifty opened with a gap up and consolidated for most past of the day. It closed with gains though up ~70 points. On the daily charts we can observe that the Nifty has reached the daily upper Bollinger band (18146) and that is one of the reason why the nifty consolidated in today’s trading session. The hourly momentum indicator has triggered a bearish crossover which indicates that there can be consolidation after a sharp runup. Overall, the positive outlook remains intact. Today Nifty has achieved our short-term target of 18100 and hence we revised it upwards to 18350 which coincides with the weekly upper Bollinger band. In terms of levels, 18050 – 18000 shall act as a crucial support zone while 18180 – 18200 shall act as an immediate hurdle zone for the Nifty.

Views by: Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

3:55 PM

Comment :: What supported the bulls today?

Defying the trend in global peers, Indian benchmark indices continued its upward momentum, fuelled by strong Q4 earnings and favourable domestic macroeconomic data. The manufacturing PMI surpassed expectations due to an increase in new business, moderation in price pressures, and improved supply chain conditions. Additionally, the GST collection in April was the highest recorded to date. While western markets traded with mild cuts ahead of the US Fed policy announcement, the domestic market benefited from strong inflows by FIIs.

Views by: Vinod Nair, Head of Research at Geojit Financial Services.

3:49 PM