Indian equity benchmarks were trading higher in noon deal led by gains in Infosys, Bharti Airtel and Tata Motors. The S&P BSE Sensex rose 0.3 percent to 33,929 and the NSE Nifty 50 Index advanced 0.3 percent 10,151.
Indian equity benchmarks were trading higher in noon deal led by gains in Infosys, Bharti Airtel and Tata Motors. The S&P BSE Sensex rose 0.3 percent to 33,929 and the NSE Nifty 50 Index advanced 0.3 percent 10,151. Fifteen out of 19 sector gauges compiled by BSE were trading higher.
“Infosys has grossly underperformed the Index. While NIFTY rose nearly 26 percent on YTD basis, INFOSYS gained little over 6 percent. It is reacting to Salil Parekh’s appointment as new MD and CEO. The Stock remains in an upward rising channel on the Daily Charts but still faces formidable resistance in form of a Double Top around 1020-1025,” says Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. Broadly speaking, the INFRA, MEDIA and IT sectors along with select stocks from AUTO are expected to relatively out-perform the Markets in general, he adds.
With the index hovering in green, we bring you top four stocks of today.
Infosys: Infosys shares jumped nearly 3 percent in the early trade today.Infosys stock was trading at Rs 993 at 12:30 pm today. The share of the IT major is rallying on the news of the appointment of Salil S Parekh as the new managing director and chief executive officer of the company on Saturday ending days of speculations uncertainties over leadership of the company after Vishal Sikka resigned in August earlier this year. CLSA has given a ‘buy’ call on Infosys stock with a target price of Rs 1140 per share, implying an upside of nearly 19 percent from the current market price of Rs 960. The IT stock has plunged by nearly 5 percent up till now this year. CLSA’s report said, “Parekh’s appointment is a promising choice as he brings tenured experience in running a large IT services business.” However, the global brokerage also cautioned the investors saying, “the company may face internal distractions over the next few quarters.”
Tata Motors: Tata Motors shares jumped nearly 3 percent in the early trade today. The stock was trading at Rs 406 at 12:30 pm today. Sales of the automobile major rose 58 percent (YoY) to 52,464 units versus 33,274 units in November. Milan says, “Tata Motors is seeing a sharp technical pullback.It is trading near a pattern support and is aided by the lead indicators attempting to mark a higher bottom. The sentiment is also aided by better-than-expected auto sales numbers for November.”
Bharti Airtel: Bharti Airtel shares jumped nearly 1 percent in the early trade today. The stock was trading at Rs 490 at 12:30 pm today. “BhartiAirtel saw a sharp parabolic up move right from 370 to 560 levels in a short time and currently it remains under corrective retracement. Though it is witnessing some price action, the stock remains in no-trade range until 500. Any fresh long positions may be considered only above 500. The stock enjoys a pattern support around 480,” says Milan.
Hindustan Lever: Hindustan Lever shares jumped nearly 1 percent in the early trade today. The stock was trading at Rs 1268 at 12:30 pm today. Milan observes, “Over last quarter, Hindustan Lever has been consolidating in a broad range after marking a top around 1275. It attempted a breakout, tested 1300-mark and saw retracement back into the consolidation range. Currently, it encounters multiple resistance in the 1275-1280 mark. Any comprehensive move above 1280 will take it beyond 1300. Until then, consolidation may continue.”