Market Movers: Realty stocks shine; over 85 stocks give buy signal

Market Movers: Realty stocks shine; over 85 stocks give buy signal

MUMBAI: While the benchmark indices had a tepid end to today’s trading session, the broader market surged as optimism for economic growth and corporate earnings nudged investors towards midcap and smallcap companies.

The Nifty50 index closed 0.1 per cent, or 8.9 points, lower at 14,137.35 while the BSE Sensex ended at 48,093.32, down 80.7 points, or 0.2 per cent.

Nifty Midcap 100 and Nifty Smallcap 100 rose 1.5 per cent and 1.4 per cent, respectively, led by gains in shares of financial services, industrial manufacturing, consumer goods and construction companies.

Here are the big movers and shakers in today’s trade:

Dixon Technology jumps on boAT deal
Shares of the contract manufacturing company soared nearly 10 per cent after it entered into a partnership with Imagine Marketing to manufacture wireless speakers for the popular boAT speaker brand.

Ashok Leyland surges on demand hopes
The stock jumped nearly 6 per cent as analysts suggested that the demand for commercial vehicle in the country could enter a secular growth cycle due to the ongoing recovery.

Banks hold fort
While the Nifty50 ended lower, shares of banks held fort as investors expect the sector to deliver strong returns in 2021, helped by easing asset quality concerns and likely improvement in loan growth.

Realty in dreamland
Real estate companies rose 1-13 per cent as sentiment towards the sector improved further following Maharashtra government’s decision to cut premiums on real estate projects by 50% and as Sobha Ltd posted strong update for the December quarter.

Brewers gain on Odisha’s move
Shares of alcohol makers soared 1.5-20 per cent after PTI reported that Odisha government has allowed bars and restaurants, beer parlours and clubs to resume services.

What’s giving buy signal?
More than 85 stocks on the National Stock Exchange, including Bharti Airtel, Power Grid Corporation of India, DLF, Bharat Forge, IndusInd Bank gave buy signals on the MACD indicator.

What’s ahead for Nifty?
Positioning by traders in the options contract of the Nifty50 expiring on January 28th suggested that the index could be range-bound in the coming days as both out-of-money Call and Put options of the index were sold today.

On the technical front, analysts still expect Nifty to remain above 14,000 level. However, pain may emerge if the index breaks below that level.

“The index has formed a good base near 14,100-14,000 zone holding above said level one can hold longs but any break below 14,000 mark can result in more profit booking and we may see dip towards 13,800 zone, strong hurdle for Nifty is formed near 14,250 zone fresh upside only possible above it,” Rohit Singre, senior technical analyst at LKP Securities said.

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