Market movers: IT stocks surge further, metals on backfoot; 46 counters give sell signal

Market movers: IT stocks surge further, metals on backfoot; 46 counters give sell signal

NEW DELHI: There is no stopping bulls as they are buying every dip in the market. On Tuesday, benchmark indices recovered from morning losses to clock another fresh closing highs amid mixed global cues.

Amid massive buying by FIIs, vaccine approvals in India has improved the economic outlook of the country. Macro and micro data are also indicating a better than expected recovery, boosting sentiments.

“Markets are showing tremendous resilience on every dip but still lack decisiveness. We feel the global Covid situation and progress of the vaccine drive would remain in focus, at least in the near future. On the domestic front, the start of the Q3 earnings season would hold importance as expectations are high this time,” said Ajit Mishra, VP – Research, Religare Broking.

Here is a lowdown on what happened in Monday’s trade:

HCL Tech completes DWS buyout
HCL Technologies said it has completed acquisition of Australian IT solutions firm DWS. In September last year, HCL Technologies had announced it will acquire DWS, a move that will help the Indian company strengthen its position in the Australia and New Zealand market. Shares of the company rose 1.19 per cent to Rs 991.25.

KNR Const bags orders worth Rs 600 cr
KNR Constructions hit 52-week high on Tuesday after the construction engineering company said it has won projects worth more than Rs 600 crore. The scrip rose 1.51 per cent to Rs 338.65.

HDFC adds 3%
Shares of HDFC rose 2.78 per cent to Rs 2,651.15 after the mortgage firm said its disbursements in the individual loan category grew 26 per cent during the December quarter. The individual loan business continued to see improvements during the December quarter, HDFC said in a regulatory filing.

India VIX gains 2%
India VIX, the volatility barometer of Indian markets, rose further 2.14 per cent to 20.46. The rise reflects increasing nervousness among traders on Dalal Street.

IT surges again
IT stocks continue to be in demand ahead of the December quarterly earnings scheduled from later this week. InfoEdge was the biggest gainer, up 14.47 per cent, while other constituents of the index rose up to 8 per cent.

Metal stocks slide
After gaining over 5 per cent on Monday, the Nifty Metal index dropped 1.41 per cent as traders booked profits. Steelmakers SAIL, JSW Steel, Tata Steel along with Nalco and Hindalco were major drags on the index.

Who gave sell signals
As many as 46 stocks listed on BSE gave bearish signals on Tuesday as they crossed below the Signal Line of MACD indicator. They include Vakrangee, Divi’s Labs, Bombay Dyeing, MTNL, Saint-Gobain Sekurit and Cantabil Retail, among many others.

Where is Nifty headed?
The Nifty had a negative start with a gap down opening on account of global cues. The bulls, however, moved in swiftly and bought the dip. As a result, the index witnessed steady rise as the day progressed and closed near the high point of the day.

“On the way up, Nifty has achieved an equality target of 14,200. The overall structure shows that the positive momentum can continue going ahead and the Nifty looks set to head towards 14,600 in the short term. On the other hand, 14,000-13,950 will act as a cushion on the downside,” said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.

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