Stock intake: Sensex gains, drops 98 points; Small, midcaps go beyond

Taking stock: Sensex rallies over 200 points; Energy, utilities, banks shine

Keeping track of global queues, Indian markets recovered from the previous day’s losses on August 21, while the S&P BSE Sensex rallied over 200 points while the Nifty 50 had a touch-and-go moment with 11,400.

The Sensex was up 214 points at 38,434, while the Nifty 50 was up 59 points at 11,371.

“Indian markets are showing a strong correlation with the global markets. Globally, markets are currently running on hope and liquidity,” Vinod Nair, Head of Research at Geojit Financial Services said.

Some gains appeared to be high. Investors are advised to be cautious and stock-specific as volatility is likely to increase in the coming week between the August 27 F&O deadline.

Expectations of economic activity picking up and normalizing earnings will have to translate into reality. For the markets to sustain the current momentum, Nair said. “Until then investors are advised to remain cautious while trading and remain stock-specific,” he said.

By sector, the move was seen in energy, utilities, the public sector, and banks, while gains were seen in the telecom, energy, and metals space.

Broader markets imitate benchmarks. The S&P BSE Mid-Cap index rose 0.6 percent, while the Small-Cap Index ended 1.4 percent higher.

These include HDFC Bank, Power Grid, Asian Paints, and NTPC.

Top Nifty losers included ONGC, Bharti Airtel, Hindalco Industries, and ZEE Entertainment.

Stocks & Sectors

Among sectors, the S&P BSE Power Index gained 2.8 percent, the S&P BSE Utility Index gained 2.6 percent and the S&P BSE Banks gained 1.2 percent.

The S&P BSE Telecom Index was down 0.8 per cent, while the S&P BSE Energy Index was down 0.6 percent, and the S&P BSE Metal Index was down 0.4 percent.

Volume spike of more than 100 percent was seen in stocks like Divi’s Laboratories, MindTree, SAIL, and BHEL.

Long Buildup was seen in stocks like BHEL, GMR Infrastructure, and BOSCH.

Short Buildup was seen in stocks like Havells India, Tata Steel, and Motherson Sumi.

Sanofi India, Atul, SRF, and Indiamart Intermesh hit a 52-week high on over 200 stocks on the BSE.

Stocks in news

Shares of Finolex Cables rose more than 2 percent on August 21 after brokerage firm Jefferies continued its ‘buy’ call on the stock, saying the company’s Q1 earnings were ahead of its expectations.

Strides Pharma Science share price rises more than 7% on US FDA approval for its Ursodiol tablets.

Supreme Industries stock rose more than 5 percent after Jefferies Stock continued its ‘buy’ call and raised the target price by 5 percent.

Aarti Drugs increased by 10 percent, 18 percent in two days, and the board of directors approved the issuance of the fully paid bonus share.

Shares of Jindal Stainless, India’s largest stainless steel maker, rose more than 7 percent. To a 52-week high of Rs 53 on the BSE.

Technical View

Nifty bear candlelight set on the charts. The index closed successfully above the 11,350 level, meaning the trend continues positive.

The August F&O deadline is expected to be volatile next week, but experts say the index could attempt up to 11,500.

In a negative situation, 11,100-11,200 will be the key support for the Nifty.

Disclaimer:

The above report is compiled from information available on public platforms. Stockinvestor advises users to check with certified experts before taking any investment decisions.

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