Mumbai: A late rally in select index heavyweights drove the benchmark equity indices higher in Monday’s indecisive session, which saw Nifty form a small body of negative candle with long lower shadow that signalled a minor upside bounce in the next session.
While the frontline indices logged gains, market breadth favoured the bears, and the midcap and smallcap indices lost ground.
Among stock-specific action, Vodafone Idea rose on fundraising plan and a revamp of its brand identity, while ITC cheered a top brass rejig. Tata Motors DVR jumped as promoter Tata Sons upped its holdings.
Amid all the action, volatility and uncertainty continued to rule the market, and analysts said it is likely to continue.
“Traders should now maintain positions on both sides and prefer hedged bets. It’s easier said than done due to volatile swings across the board and requires extra caution and active position management,” said Ajit Mishra, VP – Research, Religare Broking.
Here is a lowdown on what happened in Monday’s trade:
ITC shares advance
Cigarettes-to-hotels company ITC rose 1.42 per cent to Rs 189.30, after the company announced late on Saturday Supratim Dutta chief financial officer as part of its organizational restructuring replacing Rajiv Tandon, who would, however, continue on the board.
Midcaps, smallcaps underperform
Even as frontline indices logged gains, mid and small cap indices tumbled amid weak market breadth. Losers outpaced gainers in the ratio of 12:1 on the BSE. BSE mid and small cap indices dropped 0.78 per cent and 0.20 per cent respectively.
Vodafone Idea rises
Telecom major Vodafone Idea rallied 2.41 per cent to Rs 12.30 on fund raising plans and as the company unveiled a new brand identity. The company approved a plan to raise up to Rs 25,000 crore through a combination of equity and debt instruments to keep the company afloat. Also, Vodafone Idea on Monday launched a unified brand ‘Vi’ as the company aims to wrest new customers from rivals Reliance Jio and Airtel.
Astrazeneca Pharma at new high
Astrazeneca Pharma India rose for the fifth straight session as it jumped 20 per cent to a new high of Rs 4,669.90. The drug maker’s parent company Astrazeneca is viewed as a frontrunner in the race to deliver an effective vaccine for the Covid-19 virus.
Tata Motors DVR jumps
Tata Motors DVR jumped 10.54 per cent to Rs 61.90, after promoter Tata Sons raised stake on Friday. The promoter bought 53,02, 681 of Tata Motors DVR at Rs 56.02 each. It held 5.26 per cent stake at the end of June.
Promoter action: Adani Enterprises, Alembic Pharmaceuticals
Promoter Group Adani Tradeline revoked the pledge on 7,02,000 shares of Adani Enterprises. The stock closed flat at Rs 285.10. Promoter Group Uday Education Society sold 1,50,0 shares of Alembic Pharmaceuticals, and cut its stake to 0.41 per cent. The drug maker shed 1.06 per cent to Rs 917.60.
Stocks @52-week highs
A total of 112 stocks hit 52-week highs on the BSE. These included Astrazeneca Pharma, Dixon Technologies, Granules India, IndiaMART InterMESH, Ramxo Systems and Wabco India, among others.
Stocks that hit upper circuits
As many as 297 stocks rose by their upper limit on the BSE. These included Repco Home Finance, Dish TV India, Sadbhav Engineering, Tanla Solutions, 3i Infotech and Aarti Surfactants, among others.
Stocks that flash sell signals
A total of 83 stocks flashed sell signals on the BSE, as they dropped below the signal line on the MACD indicator. These included State Bank of India, Axis Bank, Bank of India, Adani Ports, PVR and Future Lifestyle Fashions among others.
Where is Nifty headed?
Nagaraj Shetti, technical research analyst, HDFC Securities, said the bearish engulfing pattern on the weekly chart is also intact, and hence any rising attempt from here could encounter selling pressure at the highs. “The near-term negative trend status remains intact for the market and any upside bounce from here upto 11450-11500 is going to be a sell on rise opportunity,” said Shetti. “Immediate supports to be watched around 11350-11300 levels for the next few sessions,” he said.