A Reversal Will Be Signalled By Nifty Closing Its Previous Days Low
The smart recovery in the last hour saw the market close an otherwise unexciting session, with modest gains, making it the fifth positive close in a row. Yesterday we had mentioned that if the Nifty closes decisively above 5,720 we may see it heading to a new yearly high. Towards the close of the trading session today the Nifty hit its intraday high of 5,731, which was the highest in the last 20 days (including today), and settled hear the days high. If the index again manages to close in the positive, we may see it finding its first resistance at 5,750. The National Stock Exchange (NSE) saw a lower volume of 55.16 crore shares and an advance decline ratio of 939:803.
The market witnessed a lower opening as the world watches the largest democracy voting for a new president later tonight. The outcome of the US presidential election is expected to end the uncertainty in the global markets seen in the last few days.
The Nifty opened 10 points down at 5,694 and the Sensex resumed trade at 18,740, down 23 points. Volatility since the opening bell kept the benchmarks on both sides of the previous closing levels in early trade.
Meanwhile, the rupee fell by 17 paise to touch a fresh two-month low of 54.78 against the dollar in early trade due to increased demand for the greenback from oil importers. The Indian unit had plunged by 80 paise on Monday to close at over eight-week low of 54.61 on massive dollar demand from banks and importers amid a sharp rise in the American currency overseas.
The market gained strength at around 10.00am on buying interest in realty, power and healthcare stocks. The gains helped the benchmarks stay in the green in the morning session.
However, some profit taking resulted in the benchmarks paring part of their gains in subsequent trade. Increased selling pressure from auto, capital goods and oil & gas stocks kept the market near the neutral line in noon trade.
While the opening figure of the Nifty was its intraday low, the Sensex touched its low at around 2.00pm with the index falling to 18,727.
A fresh bout of buying in realty and healthcare stocks saw the indices stage a smart recovery form their lows. The benchmarks went on to hit their highs towards the end of the trading session. At the highs, the Nifty rose to 5,731 and the Sensex climbed to 18,829.
The last hour bounce-back helped the market settle near the days high. The Nifty gained 20 points (0.35%) to 5,724 and the Sensex ended the session above the 18,800 level mark at 18,817, up 55 points (0.29%).
The broader indices outperformed the Sensex today. The BSE Mid-cap index closed 0.56% up and the BSE Small-cap index gained 0.35%.
Among the sectoral indices, BSE Realty (up 2.05%); BSE Healthcare (up 0.95%); BSE Power (up 0.71%); BSE Bankex (up 0.60%) and BSE PSU (up 0.60%) were the top gainers. BSE Auto (down 0.51%), BSE Capital Goods (down 0.21%) and BSE IT (down 0.01%) were the losers.
Seventeen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Cipla (up 4.18%); GAIL India (up 1.85%); HDFC (up 1.75%); Jindal Steel (up 1.43%) and State Bank of India (up 1.39%). The main losers were Hindalco Industries (down 1.87%); Maruti Suzuki (down1.70%); Tata Motors (down 1.06%); Hero MotoCorp (down 0.72%) and Bajaj Auto (down 0.60%).
The top two A Group gainers on the BSE wereJammu & Kashmir Bank (up 7.81%) and HDIL (up 5.90%).
The top two A Group losers on the BSE wereVoltas (down 2.94%) and Jubilant Foodworks (down 2.41%).
The top two B Group gainers on the BSE wereR* Shares Banking Exchange Traded Fund (up 27.46%) and Jolly Board (up 20%).
The top two B Group losers on the BSE wereVinayak Polycon International (down 18.69%) and Relaxo Footwears (down 10.18%).
Out of the 50 stocks listed on the Nifty, 33 stocks settled in the positive. The key gainers were Cipla (up 4.23%); Asian Paints (up 3.61%); Ambuja Cements (up 2.71%); ACC (up 2.68%) and Ranbaxy Laboratories (up 2.51%). The losers were led by IDFC (down 2.34%); Maruti Suzuki (down1.89%); Hindalco Industries (down 1.83%).Reliance Infrastructure (down 1.72%) and Tata Motors (down 1.07%).
Markets in Asia settled mixed on fresh concerns about Greeces ability to get a consensus for its harsh austerity measures. Cautiousness ahead of the US presidential elections also kept the gains in check.
The Shanghai Composite declined 0.38%; the Hang Seng fell 0.28%; the KLSE Composite dropped 0.51%; the Nikkei 225 slipped 0.36% and the Straits Times lost 0.41%. Among the gainers, the Jakarta Composite rose 0.26%; the Seoul Composite surged 1.05% and the Taiwan Weighted climbed 0.71%.
At the time of writing, the key European indices were up between 0.61% and 0.81% and the US stock futures were trading higher, indicating a firm opening for the US markets on Election Day.
Back home, inflows from foreign institutional investors (FIIs) into stocks on Monday were offset by withdrawals by domestic institutional investors (DIIs). While FIIs were net investors of stocks totalling Rs373.93 crore, DIIs were net sellers of shares aggregating Rs344.41 crore.
Watch maker Titan Industries, a joint venture between Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO), has drawn up plans to expand its accessories division. The company, which has seen a good demand for its mens apparel segment, is set to venture into belts and handbags for women. The stock gained 0.09% to close at Rs290.20 on the NSE.
Glenmark Pharmaceuticals today said it has settled litigation with Janssen Pharmaceuticals Inc over patent actions regarding generic oral contraceptive Norgestimate and Ethinyl Estradiol tablets.
Under the terms of the settlement agreements, Glenmark will be able to market and distribute its generic tablets under a royalty bearing licence from Janssen on 31 December 2015, or earlier under certain circumstances. The stock declined 1.42% to close at Rs431.55 on the NSE.
Vacation ownership company Mahindra Holidays and Resorts India (MHRIL) is looking to expand its base overseas in locations such as Dubai, Sri Lanka and Malaysia. The company recently added a resort in Bangkok, Thailand. The new property called Mac Boutique Suites is a 77-room resort located centrally in the Bangkok business district. The stock dropped 1.39% to close at Rs281 on the NSE.
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