Index heavyweights such as ICICI Bank, Axis Bank, HDFC, Bajaj Finance and Reliance Industries (RIL) were among the top index contributors.
With a view to outperform the market and at the same time to gauge the volatility, research and brokerage firm Anand Rathi Financial Services has prepared Alpha Tech basket
Domestic equity market benchmarks BSE Sensex and Nifty 50 started the week on a strong footing, gaining over 1.5 per cent coupled with positive global cues. BSE Sensex ended 593 points or 1.59 per cent up at 37,982, while the broader Nifty 50 index jumped 177 points or 1.60 per cent to close at 11,227. Index heavyweights such as ICICI Bank, Axis Bank, HDFC, Bajaj Finance and Reliance Industries (RIL) were among the top index contributors. The broader market outperformed equity benchmarks. BSE MidCap index jumped 2.68 per cent or 384 points to end at 14,721, while the BSE SmallCap index finished 2.54 per cent or 368 points higher at 14,863. “Global cues were also positive following positive industrial profits data from China, setting aside concerns about the increasing virus infections and related impact. Indian markets were also banking on further stimulus and other measures by the government to boost the economy,” said Vinod Nair, Head of Research at Geojit Financial Services.
Media stocks rally: On the sectoral front, all the Nifty sectoral indices ended in the green. Nifty Media index was the top sectoral gainer, up 4.77 per cent led by PVR, INOX Leisure, Hathway and Dish TV. Nifty Bank index jumped 3.26 per cent with IndusInd Bank, Bandhan Bank and Federal Bank as index gainers. Nifty FMCG index gained 0.85 per cent.
Global markets: European stocks jumped in Monday’s session with FTSE up 1.51 per cent, DAX up 2.83 per cent and CAC up 2.09 per cent. “European stocks partially recovered from last week’s hefty losses on Monday, helped by bargain shopping by foreigners, upbeat industrial profits data from China and as banking stocks bounced off record lows,” said Deepak Jasani, Head of Retail Research, HDFC Securities. Asian stock markets too gained on Monday. Japan’s Nikkei advanced 1.32 per cent, Hong Kong’s Hang Seng gained 1.04 per cent and South Korea’s Kospi added 1.29 per cent.
Technical take: “The markets kept the upward momentum on for the entire day. However, the level to watch out for is 11300-11350. We need to get past and close above that price zone. That would signal that an intermediate bottom has been made and we have entered into an uptrend. Until then, there is always a possibility of a U-turn from the current levels and the Nifty might attempt to go and test the 10750 level,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.