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After Market: Midcaps lag, Suzlon sees rebound, stocks@52-wk lows

The stock market rallied 1 per cent led by broadbased buying across sectors.

Feb 06, 2019, 05.54 PM IST
The stock market rallied 1 per cent led by broadbased buying across sectors.
Equity benchmarks Sensex and Nifty extended their rally into the fifth straight session on Wednesday, led by buying in metal and auto stocks amid brisk buying by domestic and foreign institutional investors.

The 30-share Sensex closed 358 points, or 0.98 per cent, higher at 36,975, while 50-share Nifty settled 128 points, or 1.17 per cent, up at 11,062.

Vinod Nair, Head of Research, Geojit Financial Services, said the market rallied 1 per cent led by broadbased buying across sectors, and Nifty breached its narrow trading band of 10,650-10,950 on expectation of a shift in RBI’s policy stance and strong FII inflows.

“Additionally, a drop in bond yield and marginal strength in rupee adding strength to this expectation,” he said.

Let’s take a look at the highlights of Wednesday's session:

Midcaps underperformed
The BSE Midcap index settled 0.12 per cent down at 14,425 with Reliance Infrastructure falling 32 per cent, followed by Tata Chemicals (down 8.18 per cent) and Reliance Capital (down 6.80 per cent). On the other hand, shares of Reliance Nippon Life Asset Management and Reliance Power rallied 18.29 per cent and 9.21 per cent, respectively. The BSE Smallcap index settled almost flat at 13,668.

Stocks @ fresh 52-week lows/highs
Despite the firm close at the benchmark level, as many as 391 stocks on NSE scaled fresh 52-week lows. Among them were 3i Infotech, ABG Shipyard, Arvind Limited, LT Foods, Prataap Snacks and ICRA. On the other hand, Axis Bank, Bata India, Divi’s Labs, Infosys, Dr Lal Pathlabs and Tech Mahindra were among 14 stocks that hit fresh 52-week highs.

Suzlon recovers 7%
Shares of Suzlon Energy jumped 7 per cent after the companies clarified on Tuesday that it has been regular in servicing its debt obligations, including servicing obligations towards banks and others in January, 2019. The scrip had tumbled over 20 per cent on the BSE on Tuesday on speculation that the company had defaulted on its loans.

Infosys hits record high
Shares of country’s second largest software services exporter Infosys gained as much as 1.6 per cent to a record high of Rs 766. However, the scrip paired gains and closed just 1.11 per cent higher at Rs 762. The stock broke above its resistance at Rs 759.8, the 50 per cent Fibonacci projection level of the uptrend from August 22, 2017 low to October 1, 2018 high, according to Reuters. A close above this 50 per cent Fibonacci projection level may lead to further gains towards the next resistance at Rs 798, which is the 61.8 per cent projection level.

Zee Entertainment rallies
Shares of Zee Entertainment Enterprises rose 6.20 per cent to Rs 387. Promoters of Zeel, the flagship firm of troubled Essel group, said they are open to selling over 50 per cent of their holdings in the firm as a part of asset monetisation to repay debt, and are in talks with more than two investors.

Tech Mahindra soars post Q3
Shares of Tech Mahindra surged over 8 per cent after the IT company reported a 27.5 per cent jump in December quarter profit. The scrip settled 8.13 per cent higher at Rs 811 on BSE. The company posted a 27.5 per cent rise in December quarter profit at Rs 1,203 crore, driven by automation measures, which widened its profit margins.

Spurt in open interest
With a change of 75.63 per cent, Cipla led the pack of stocks that witnessed the biggest spurt in open interest on NSE. It was followed by Reliance Infra (69.06 per cent), Tata Chemical (45.34 per cent), SRF (34.52 per cent), Muthoot Finance (32.31 per cent) and Tech Mahindra (32.27 per cent).

Q3 earnings from Nifty pack
Cipla: The pharma major reported a 17.05 per cent year-on-year (YoY) drop in consolidated profit at Rs 332.50 crore for December quarter, falling short of the Rs 365 crore profit anticipated by analysts in an ET Now poll. It had reported Rs 400.51 crore profit in the year-ago quarter. The stock closed 3.75 per cent higher at Rs 527.95 on BSE.

Adani Ports: Adani Ports & SEZ posted a 42 per cent year-on-year (YoY) rise in Q3 consolidated profit at Rs 1,410 crore. The company had posted Rs 994 crore profit in the year-ago period. The stock closed 2.46 per cent lower at Rs 331.15 on BSE.

JSW Steel: JSW Steel posted a 10 per cent year-on-year drop in consolidated profit at Rs 1,603 crore. Analysts in an ET Now poll had estimated a profit of Rs 1,782 crore. Revenue from operations rose 11 per cent YoY to Rs 20,318 crore. The stock closed 2.06 per cent higher at Rs 279.30 on BSE.

Most active stocks
Reliance Communications, Reliance Power, Dish TV, Reliance Infra, Suzlon and YES Bank were among most active stocks in terms of volume, while Reliance Infra, Reliance Industries, Tech Mahindra, Jubilant Food, and ZEEL were among most active in terms of value.

43 stocks set to see potential rise
Momentum indicator moving average convergence divergence, or MACD, showed bullish crossovers on 43 counters on BSE. Among them were Ashok Leyland, SAIL, IOC, Barampur Chini, HDFC Bank and HDFC. On the other hand, 15 stocks, including Allahabad Bank, Usha Martin, Prataap Snacks, Timken India and Dixon Technologies have signalled bearish crossovers.
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