Opening Bell: Sensex, Nifty rise on strong US job data; Vodafone Idea, NALCO, Asian Oilfield stocks gain
Nifty shifted into a smart upside bounce on Friday and closed higher. Nifty held above the support of 11,560 levels on Friday and the opening upside gap was filled partially.
On account of strong US job data and foreign institutional investors (FIIs) continuing their faith in the Indian equity markets, the bull run at Dalal Street continued on Monday morning trade. The BSE Sensex rose 110 points to 38,972 levels while the 50-stock Nifty rose 28 points to 11,694 levels. Stocks of Vodafone Idea rose over 4.5 per cent, NALCO shares went up over 2 per cent while the Asian Oilfield Services counter shot up over 3.5 per cent.
Speaking on the current market trend Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC securities told Zee Business online in a written statement, "After showing weakness in the last couple of sessions, the Nifty shifted into a smart upside bounce on Friday and closed higher. Nifty held above the support of 11,560 levels on Friday and the opening upside gap was filled partially." He said that Nifty as per weekly timeframe was formed a doji type candle pattern at the new all-time high of 11,761 (at the resistance of previous top of Aug 2018). Technically, doji type candle formation at the new high/resistance could be a signal of confused state of mind among participants. This could act as an impending reversal pattern at the highs, on the confirmation.
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Telecom stocks led the bull run on Dalal Street in early morning intraday trade on Monday. Telecom major GTL Infrastructure shot up near 4.5 per cent, GTL Limited shares rose near 4.25 per cent, Tata Communications counter jump over 1.25 per cent while Bharti Airtel stocks rose near 1.65 per cent.
Following the Telecom rally closely, the BSE Metal index added around 1 per cent in early morning trade today. Metal major Vedanta and Tata Steel went up over 1.25 per cent, SAIL stocks went higher near 1.1 per cent, shares of Jindal Steel & Power went up around 1.4 per cent, Hindustan Zinc shot up around 1.05 per cent while Hindalco and JSW Steel added around 0.85 per cent.
However, energy stocks had a shaky opening on the first trade session of the week. The Sensex heavyweight Reliance Industries aka RIL was off near half a per cent, shares of Hindustan Petroleum Corporation crashed near 2.5 per cent, IOCL counter was down near 1.5 per cent, Bharat Petroleum Corporation stocks trade down near 2 per cent while Aegis Logistics went down nera 0.8 per cent.
Asian shares inched up to seven-month highs on Monday as investors cheered a rebound in US payrolls and hints of more stimulus in China, though there was some caution ahead of what is likely to be a tough US earnings season.
Chinese blue chips climbed 1.4 percent to territory not visited since March last year. MSCI's broadest index of Asia-Pacific shares outside Japan followed by gaining 0.4 per cent to its highest since August.
Japan's Nikkei also made its high of the year so far and was last up 0.1 per cent. But, later on it edged lower by losing near 0.22 per cent, South Korean Kospi went down 0.08 per cent, Shanghai index edged down 0.09 per cent while Hang Seng rose 0.34 per cent.
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