After Market: IT’s pain, 280 scrips in the buy zone & oversold stocks

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NEW DELHI: Friday’s session offered big relief to market participants on Dalal Street as sustained buying across sectors offered the bulls a booster doze to help regain their control on the market.

A fall in crude oil prices and recovery in the rupee scripted the rise in the market. BSE Sensex closed 732 points, or 2.15 per cent, higher at 34,733.

Nifty50 jumped 238 points, or 2.32 per cent, to settle at 10,472, with 46 stocks advancing and four – Tata Consultancy Services, HCL Technologies, Dr Reddy’s Laboratories and Tech Mahindra – declining.

Following in the footstep of Sensex, BSE Midcap and Smallcap indices jumped 2.42 per cent and 2.60 per cent, respectively.

Gaining and losing on alternate days, the Sensex managed to gain 357 points, or 1 per cent, for the week while Nifty edged up by 156 points or 1.51 per cent. With this, Sensex broke its losing streak of five consecutive weeks.

Let’s take a look at highlights of Friday’s session:

Sensex a sea of green
All stocks, burring Tata Consultancy Services (down 3.10 per cent), ended the day with gains. Maruti emerged as top gainer, rising 5.89 per cent, whereas Tata Motors (up 0.36 per cent) rose the least. Reliance Industries, HDFC Bank, ITC, HDFC and Kotak Mahindra Bank emerged the top five contributors of the rally in the Sensex.

Rupee full to action
The domestic currency rose in the wake of a drop in the dollar and US bond yields. The selling of the US currency by exporters and banks eased crude oil prices in global markets and dollar’s weakness against some currencies overseas helped the rupee find its footing. At the time of writing of this report, the domestic currency was trading 54 paise higher at 73.58.

Top gainers & losers of BSE
Kothari Products (19.98 per cent), PG Electroplast (19.96 per cent), India Cements (19.74 per cent), Lincoln Pharma (19.61 per cent), BPL (19.57 per cent), SVP Housing (19.50 per cent), Arshiya (19.34 per cent), Phyto Chem (India) (18.60 per cent), Sadbhav Engineering (17.89 per cent) and Vas Infra (17.01 per cent) were the top 10 gainers on BSE, while Binny Mills (down 10.27 per cent), Acme Resources (down 10.11 per cent), Sungold Media and Entertainment (down 9.98 per cent), Systematix Corporate (down 9.93 per cent), Arihant Foundations (down 9.83 per cent), Shilchar Tech (down 9.67 per cent), Kaushalya Infra (down 9.60 per cent), Riddhi Corporate Services (down 9.44 per cent), Reliance ETF PSU Bank BeES (down 8.81 per cent) and Carnation Industries (down 8.67 per cent) were among the top 10 losers.

IT develops a snag
The rupee’s rise did not go well with some IT stocks as they earn much of their revenues in dollar. A stronger rupee simply means less dollar revenue. TCS, HCL Tech, Mindtree, Mphasis, Tech Mahindra, NIIT Technologies and Tata Elxsi ended the day in the negative zone. Two heavyweights – Wipro and Infosys – managed to settle in the green. The BSE IT index closed the day 0.79 per cent lower at 14,299.14.

Spurt in open interest
With a 43.48 per cent change, Karnataka Bank saw biggest spurt in open interest on NSE. It was followed by TCS (27.41 per cent), NIIT Tech (22.90 per cent), Bharti Airtel (21.69 per cent), MRPL (16.75 per cent), Chennai Petroleum Corporation (16.63 per cent) and Infosys (16.51 per cent), in that order.

MACD bullish on 280 counters
Momentum indicator moving average convergence divergence, or MACD, on Friday showed bullish crossovers on 280 counters on BSE. Among the stocks were Reliance Power, DHFL, Punjab National Bank, MMTC, ICICI Bank, REC, Ruchi Soya Industries, HCC and Karnataka Bank. On the other hand, 11 stocks, including IL&FS Transportation, Transgene Biotek, Noida Toll Bridge, Winsome Breweries and Phaarmasia saw bearish crossovers.

95 stocks in the oversold zone on BSE
Momentum oscillator Relative Strength Index, or RSI, showed 95 stocks in the oversold zone on BSE. They included Bombay Dyeing, Central Bank, Arcotech, MPS Infotecnics, Electrosteel Steels and Madhucon Project. Meanwhile, 30 stocks, including Ashari Agencies, Ruchi Infrastructure, Rama Paper Mills, Samtel India, Otco International, Rajasthan Tube and Apoorva Leasing Finance & Investment, entered the overbought zone. RSI considers the speed and direction of a stock’s price movement and measures the stock’s internal strength based on past performance.

Source: Economic Times