While the index made a bullish candle on the daily chart, analysts said the market as a whole is seeing signs of fatigue and Nifty also appeared overbought on the short-term charts.
RIL led Sensex’s contribution to earnings as it continued its wave of deals for Reliance Retail, while major software exporters Tata Consultancy Services (TCS) and Infosys posted new all-time highs. Sensex eventually rose 304 points to 39,879, while Nifty climbed 76 points to 11,739.
Meanwhile, a disappointing business update from Bajaj Finance weighed heavily on India’s largest non-bank finance company (NBFC), while Rakesh Jhunjhunwala’s biggest bet, Titan Co, applauded its encouraging business update.
Here’s a lowdown on what happened in Wednesday’s operation:
RIL claps another check
RIL rose 2.13 percent to Rs 2,257.15 after the retail oil conglomerate said a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore in Reliance Retail Ventures. ADIA’s investment will result in a 1.20 percent equity interest in Reliance Retail on a fully diluted basis.
TCS, Infosys on record
Major software exporters TCS and Infosys posted all-time highs of Rs 2,769 and Rs 1,072 respectively, ahead of the first September quarter earnings announcement. The IT specialist is likely to report a sequential increase of 8 to 15 percent in earnings for the September quarter, and is forecast to post a growth of 2 to 3 percent in revenue in constant currency (CC) terms and an improvement of 120 to 130 basis points in EBIT margins, both sequentially.
Bajaj Finance collapses
India’s NBFC Bajaj Finance fell 4.12 percent to Rs 3,321.20 after it said it will continue to accelerate its provisions for Covid-19 for the second quarter, as well as to further strengthen the balance sheet. The company had made an additional provision of Rs 1,450 crore in the first quarter, bringing the provision for contingent credit losses due to Covid to Rs 2,350 crore in the June quarter.
Big Bull’s biggest bet on an uptrend
Jhunjunwala’s largest share bet, Titan Company, rose 4.44 percent to Rs 1,253.20, encouraging its trading update. The company said the key jewelry division’s September quarter sales stood at 98 percent of sales on a year-over-year basis, excluding the sale of Rs 390 crore of excess gold inventory during the trimester.
Diagnostic companies ride the Covid wave
Shares of three key diagnostic companies, Thyrocare Technologies, Metropolis Healthcare and Dr Lal Pathlabs, posted record highs of Rs 1,061, Rs 2,146.50 and Rs 2,329.80 respectively earlier in the day. These shares closed 20%, 4.46% and 11.68% more, respectively. These stocks have been on an uptrend of late, hoping for strong revenue growth from Covid-19 testing.
Promoting action: Grupo Adani
The promoter group Gautam S. Adani & Rajesh S. Adani, on behalf of SB Adani Family Trust, pledged 1,00,00,000 shares and 30,00,000 shares of Adani Ports & Special Economic Zone and Adani Transmission respectively. While Adani Ports fell 0.63% to Rs 360.50, Adani Transmission was up 4.70% to Rs 271.85.
Stocks that reached the 52-week high
Up to 140 stocks reached their respective 52-week highs on the BSE. These included Infosys, Tata Consultancy Services, Aarti Drugs, Advanced Enzyme Technologies, Apollo Hospitals, Adani Enterprises, Ambuja Cements, Berger Paints, Asian Paints, Thyrocare Technologies, Metropolis Healthcare, and Dr Lal Pathlabs, among others.
Actions reaching the upper limit
A total of 254 stocks rose over their daily BSE limit. These included Thyrocare Technologies, Infibeam Avenues, Edelweiss Financial Services, Indiabulls Integrated Services, Ramco Systems, Ruchi Soya, and Reliance Infrastructure, among others.
Stocks that buy quickly
Some 106 stocks issued “buy” signals on the BSE, crossing above the signal line on the MACD indicator. These included Tata Power, Tata Steel, Indian Oil Corp, HDFC Life Insurance, Canara Bank, Oil India, and Edelweiss Financial Services, among others.
Where is Nifty headed?
According to Sahaj Agrawal, Head of Research: Kotak Securities Derivatives, the momentum and options data suggests a positive setup and continuation of the bullish move, and interim corrections should be used to accumulate as the broader setup remains positive.
“On the higher side, expect Nifty to test 11,950-12,200 levels in the medium term. On the downside, strong buy support is expected at 11,300 levels, ”said Agrawal.
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