Analysts said Nifty is entering a crucial resistance in the 11,900-11,950 zone and is facing hurdles at the downsloping minor trend line. However, expected profit booking is not likely to change the positive short-term trend, as buying could emerge at lower levels.
Despite the upbeat frontline indices, the broader market displayed some signs of fatigue and did not catch up with the momentum in the blue chip stocks.
Here is a lowdown on what happened in Wednesday’s trade:
RIL shares rebound
Shares of RIL rebounded 3.46 per cent to Rs 1,913.45, while partly paid shares jumped 7.07 per cent to Rs 1,048.75. The index heavyweight had been under pressure for the past two sessions after September quarter earnings. The stock is still down 14 per cent for last one month, while its partly paid shares have eroded 21.5 per cent value in the same period.
IT pack leads the surge
BSE IT index rose 1.83 per cent, with sectoral leader TCS and peer Infosys rising 0.78 per cent and 3.02 per cent to Rs 2,653.25 and Rs 1,094, respectively.
Midcaps & smallcaps underperform
BSE midcap and smallcap indices lagged the frontline indices and rose 0.43 per cent and 0.33 per cent, respectively. Despite these gains, the market breadth remained negative, as there were more losers than gainers on BSE.
CARE Ratings surges
Shares of rating agency Care Ratings jumped 20 per cent to Rs 365.20 even though the company posted a tepid earnings for the September quarter. The company reported a 2.82 per cent drop in consolidated profit at Rs 35.84 crore.
Promoter action: Sun Pharma, LT Foods
Promoter group Shanghvi Finance pledged a total of 27,75,000 of Sun Pharma on October 29. The stock however, rose 3.96 per cent to Rs 504.30. Promoter Raghuvesh Holdings revoked the pledge on 30,00,000 shares of LT Foods on November 3. The stock rose 2.35 per cent to Rs 50.10.
Stocks at 52-week highs
Some 88 stocks registered 52-week highs on BSE. They included Adani Enterprises, Adani Gas, Berger Paints, Jet Airways and Navin Fluorine, among others.
Stocks that hit lower circuits
More stocks hit lower circuit limits than those that rose by their daily limit on BSE. The 232 stocks that dropped by their daily limits included Suzlon Energy, Route Mobile, Tanla Platforms, Reliance Naval & Engineering, Opto Circuits and Birla Cotsyn, among others.
Stocks that flashed buy signals
Some 76 stocks flashed ‘buy’ signals on BSE, as they crossed above the signal line on the MACD indicator. These included Adani Ports, Sun Pharma, HDFC , Glenmark Pharma and Ashoka Buildcon, among others.
Where is Nifty headed?
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said Nifty’s short-term trend remains positive. “Having moved up sharply in last two sessions and placed near the crucial resistance in the 11,950-12,050 zone, there is a possibility of minor profit booking at higher levels before it sees any upside breakout of the hurdle,” said Shetti. “Any dips down to the 11,800-11,750 zone is going to be a buy on dips opportunity in the market for the next few sessions,” he said.
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