Market Movers: Tata Motors, IT pack surges; 65 stocks give sell signal on MACD

Market Movers: Tata Motors, IT pack surges; 65 stocks give sell signal on MACD

MUMBAI: While the benchmark indices recorded yet another lifetime closing highs today helped by technology stocks, the broader market saw weakness on concerns over likely rollback of some liquidity measures by the Reserve Bank of India (RBI).

The Nifty50 index ended 1.0 per cent, or 137.50 points, higher at 14,484.75 points while the BSE Sensex closed at 49,269.32, up 486.81 points or 1.0 per cent.

The breadth of the market was decidedly weak as broader market saw profit booking with the Nifty Midcap 100 and Nifty Smallcap 100 index closing 0.2 per cent and 0.05 per cent lower, respectively.

Here are some of the major movers in today’s trade:

Volatility gauge shoots higher
While the benchmark indices did close at lifetime highs, concerns among market participants over frothy valuations became palpable as the volatility gauge India VIX surged 9 per cent amid weakness in global markets and likely hedging by some prominent investors in Nifty50 option contracts.

Tech stocks rally on TCS’ earnings
Shares of large cap information technology companies single-handedly helped the benchmark indices to their record highs today as blockbuster December quarter earnings by TCS further cemented investors’ optimism. Nifty IT index gained 3.3 per cent.

Tata Motors soars on Tesla rumours
Shares of Jaguar Land Rover-owner jumped 11 per cent in the session on market buzz that the company and Tesla may enter into a memorandum of understanding for the manufacturing and sale of electric vehicles in India.

Auto ancillaries soar
Shares of auto component makers rose 1-20 per cent after peer GNA Axle reported strong earnings growth for the quarter ended December, leading investors to build-in similar earnings from other companies.

Cement, steel stocks feel the heat
The government is miffed with the dramatic surge in steel and cement prices in the country with Cabinet minister Nitin Gadkari suggesting that the government could bring in a regulator. Shares of steel and cement companies, naturally, fell sharply in reaction to the minister’s suggestion.

Burger King tanks
Shares of Burger King India sank 10 per cent on market talk that some anchor investors in the company’s initial public offering may look to sell shares after their lock-in period ended today.

Who is giving sell signals?
As many as 65 stocks gave a sell signal based on MACD indicators, including prominent names like State Bank of India, InterGlobe Aviation, and Whirlpool of India.

What’s ahead for Nifty5o index?
Bullishness among traders remains high after the first session of the week, as reflected in aggressive buying in out-of-money call options of Nifty50 today. Traders expect the index to head towards the 14,800 mark given that the call option strike price of that level saw the highest addition of Open Interest.

On technical charts, analysts suggested that intra-day traders could take fresh long positions in the Nifty50 if the index sees a mild correction towards 14,400 or 14,380 points. “Trend remains positive for the index and we have seen no signs of a reversal at the moment. Even the monthly set-up is looking quite positive with likely target around 14800 for the Nifty 50,” said Ruchit Jain, technical analyst with Angel Broking.

Source link


Please enter your comment!
Please enter your name here