Markets Trade In Green With Financial Rebound; Investors Await Fresh Cues

Indian benchmark indices recovered and concluded with gains on Tuesday trading session with pace of global rally as investors anticipated that the US Fed will pause hawkish policy.

The National stock exchange (NSE) Nifty 50 index closed higher at 19,783 or 0.45 per cent, while the S&P Bombay Stock Exchange (BSE) Sensex concluded 0.42 per cent higher at 65,930.

Among Nifty50 index, insurance stocks SBI Life and HDFC Life traded with the highest gains of 2.77 per cent and 2.38 per cent respectively. 

Prime laggards of the index included state-runner enterprises COAL India, ONGC and Bharat Petroleum with the losses of 3.90 per cent, 3.36 per cent and 1.02 per cent respectively. 

In terms of sectoral performance, Healthcare, Realty, and Metal sectors gained 1 per cent each, whereas Oil & Gas and Capital Goods sectors saw a decline of 0.5 per cent each. 

“Markets snapped the recent losing streak and ended higher despite a mixed trend in other Asian indices and weakness in European gauges. Cautious optimism prevailed in the market as investors resorted to selective buying in an uncertain market. Corporate earnings season is coming to an end and the market is awaiting fresh cues to take exposure,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The more domestically focussed mid and small-caps indices traded marginally with 0.06 per cent gain and 0.11 per cent loss respectively.

Among Nifty 50 mid-cap stocks, Oberoi Realty extended its gains to 4.27 per cent on the declaration of buying a large piece of and worth Rs 5.97 billion, while Ashok Leyland and Zee Entertainment rose more than 3.5 per cent.

Conversely, REC reduced its loss and closed down 2.21 per cent, whereas Idea and AU Small Finance Bank lost 2.12 per cent and 1.95 per cent in the Nifty mid-cap index.

“The India VIX (Volatility Index) showed a positive movement of 0.07 percent intraday and settled at 12.2325. The index has a support zone around 19,700 to 19,600. Analysing the Open Interest (OI) data, the call side exhibited the highest OI at 19,900, followed by 20,000 strike prices. On the put side, the highest OI was observed at the 19,700 strike price,” said Mandar Bhojane, Research Analyst, Choice Broking.

For Bank Nifty, the support levels are identified at 43,500 to 43,300, while resistance is positioned at 43,900 to 44,000 levels. Overall, the market seems to be displaying stability with key support and resistance levels in focus, added Bhojane.

Among individual stocks, Titagarh Rail Systems (TRS) rallied and closed at Rs 999.85 with 6.83 per cent gains after it entered into an agreement with ABB India for offering propulsion systems for Indian metro projects. 

Zen Technologies, a defence equipment firm, soared to close at 3.4 per cent gains as it bagged an export order worth Rs 420 million to supply simulators.

Tata Steel gained 1.90 per cent to close at Rs 126.25 after brokerage firm Jeffries expected the firm’s margin to expand in the next quarter.

Kalyan Jewellers surged 6.18 per cent to Rs 333.20 after its subsidiary Kalyan Jewellers FZE purchased the remaining 30 per cent ownership in Kalyan Jewellers LLC, Oman to facilitate better administration.