Taking Stock | Bulls push Nifty above 14,200, Sensex up 260 pts; IT stocks in focus

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The Indian market continued its upward journey with Nifty breaching the 14,200 level for the first time. At close, the Sensex was up 260.98 points or 0.54% at 48,437.78, and the Nifty up 66.60 points or 0.47% at 14,199.50.

“Bulls put to rest worries across Europe on account of the lockdown as IT & Financials led the charge in afternoon trade. The broader market witnessed a renewed interest in insurance stocks and several small & midcap names across sectors were seen buzzing around,” said S Ranganathan, Head of Research at LKP Securities.

The Nifty IT index gained 2.6 percent, while Nifty Bank index rose 1.6 percent. Meanwhile, selling seen in the metal, infra and energy names.

Broader markets outperformed the main indices. The BSE midcap index added 1.4 percent and the smallcap index rose 0.7 percent.

Axis Bank, HDFC, HDFC Life, Wipro and IndusInd Bank were among major gainers on the Nifty, while losers included ONGC, JSW Steel, Bajaj Finance, Tata Steel and Hindalco.

Stocks & sectors

The BSE IT and Bank indices rose over 1 percent each. However, the Metal index shed 1 percent.

A volume spike was seen in Info Edge, Mahanagar Gas, and Indraprastha Gas.

Long buildup was seen in Aarti Industries, Info Edge, Mahanagar Gas, while short buildup was seen in SRF, Dr Lal PathLabs and Coal India.

Over 400 stocks, including Jet Airways, Grasim Industries and Aurobindo Pharma hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a Bullish candle on the daily scale forming higher highs from the last nine trading sessions.

It moved northwards throughout the day and hit a new record lifetime high of 14215 in the last hour of the session. Supports are gradually shifting higher and dips are being bought in which indicates dominance of the bulls.

“Now it has to continue to hold above 14000-14050 zones to witness a fresh rally towards 14400 then 14500, while on the downside major support exists at 13900 and 13777 levels,” said Chandan Taparia of Motilal Oswal Financial Services.

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