Sensex, Nifty fail to sustain pre-budget rally; Tata Motors, Mahindra & Mahindra, Sobha Developers stocks gain
The pre-budget rally initiated on Tuesday finaly took a pause on Thursday as the BSE Sensex nudged down 15 points after closing at 39,576 while the 50-stock Nifty slipped 3 points to 11,844.
The pre-budget rally initiated on Tuesday finally took a pause on Thursday as the BSE Sensex nudged down 15 points after closing at 39,576 while the 50-stock Nifty slipped 3 points to 11,844. The index Bank Nifty gained 72 points and sustained above the psychological 31,000 levels after closing at 31,235 levels. Shriram City, Dilip Buildcon, SREI Infrastructure and HEG were among the top gaining stocks while Cox & Kings, IFCI, PC Jeweller, Wockhardt and Suzlon Energy were among the top losing stocks in the intraday trade.
Speaking on the current market scenario Simi Bhaumik, a SEBI registered technical equity analyst told Zee Business online, "The market is moving in a broader range of 11,650 to 11,950. I would advise traders to maintain buy on dips strategy because the market is overall bullish."
Standing in sync with Simi Bhaumik's views and asking investors to buy at 11,700 levels, Rahul Mishra, AVP (Derivatives), Emkay Global Financial Services said, "We opened June month with a positive note with NIFTY touching 12,100 mark but witnessed continuous profit booking at higher levels throughout the month. 11,700 level which is 50 days moving average provided good support and we have seen buying interest at those level. 12,000 level has been a good supply zone, NIFTY has to break this level decisively and we may see fresh buying in the market. We have a budget in the coming month, the focus will be on policies by NDA2.0. Monthly option data suggest that NIFTY will be in a range of 11500-12000 for the month of July.”
Nagaraj Shetti, Technical Research Analyst, HDFC securities said, "After showing a smart upside bounce from the lows, the Nifty struggled to sustain the highs today and closed the day slightly lower. A small negative candle was formed today with long upper shadow. Technically, this pattern indicates an inability of bulls to sustain above the resistance of 11850 levels (resistance as per the concept of change in polarity). Minor volatility was seen today mainly due to a F&O expiry of June series."
Though the market failed to remain in the green zone and slipped by a whisker from its Wednesday close, realty stocks led the bull run on Dalal Street today as the BSE Realty index rose 1.7 per cent in the intraday trade. Realty major Sobha Developers share price jump 2.95 per cent, shares of Godrej Properties shot up 4.13 per cent, Prestige Estates Projects scrip skyrocketed 4.96 per cent, Sunteck Realty stocks rose to near 2 per cent, Oberoi Realty scrip added 1.37 per cent while the DLF counter went northward by near 0.8 per cent.
Auto stocks also witnessed fresh buying as the BSE Auto index jump over 1.4 per cent. Auto major Tata Motors share price surge 2.95 per cent, shares of Ashok Leyland jump 2.74 per cent, Mahindra & Mahindra scrip shot up 2.37 per cent, Motherson Sumi Systems counter added 2.14 per cent, Eicher Motors stock price rose 1.84 per cent, Cummins India stocks added 1.25 per cent, stocks of Apollo Tyres ended up adding 1.27 per cent while Bharat Forge share price went northward 1.39 per cent.
Among Asian markets, the Japanese Nikkei 225 index jump 1.19 per cent, South Korean Kospi rose 0.59 per cent, Hang Seng shot up 1.42 per cent while the Shanghai index added 0.69 per cent in the intraday trade.