The market ended higher for the second consecutive session on August 24. At close, BSE Sensex was up 403.19 points or 0.73% at 55,958.98 and Nifty was up 128.10 points or 0.78% at 16,624.60.
“While the Bajaj Twins helped power the Sensex back to 56,000 levels in afternoon trade, what was more encouraging was to see savvy investors beginning to accumulate stocks sold at higher levels in the broader market which speaks about the recovery in the earnings cycle during Q1 despite the adverse impact of the second wave. Buoyancy in tax collections brought back traders into metal names even as the Nifty Bank lent good support,” said S Ranganathan, Head of Research at LKP securities.
Bajaj Finserv, Adani Ports, Bajaj Finance, Tata Steel and Hindalco Industries were the top Nifty gainers. Britannia Industries, HDFC, Infosys, Asian Paints and Nestle were among the top losers.
The broader market outperformed with BSE midcap and smallcap indices adding over 1 percent each.
Among sectors, except IT and FMCG, all other sectoral indices ended in the green with the Nifty metal index adding nearly 3 percent.
Stocks & sectors
On the BSE, auto, bankex, capital goods, metal, oil & gas, power and realty indices gained 1-3 percent, while IT and FMCG indices ended in the red.
Among individual stocks, a volume spike of more than 1700 percent was seen in Nalco, Vedanta and PNB.
Long buildup was seen in Siemens, Vedanta and Bajaj Finserv, while short buildup was seen in Godrej Consumer Products, L&T Infotech and HDFC.
More than 110 stocks, including Bajaj Finance, Bajaj Finserv, Tech Mahindra and Larsen & Toubro Infotech hit 52-week high on the BSE.
Nifty formed a bullish candle on the daily scale with a long lower shadow that indicates declines are being bought in.
“It has to continue to hold above 16,600 zones to extend the move towards lifetime high territory of 16,700-16,750 zones, while on the downside support is seen at 16,500 and 16,380 levels,” said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for August 25
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some positive movements and attempted to hold the support level of around 16,600 on Nifty. It is going to be crucial for the short-term market scenario to sustain above the 16,600 level.
Sustaining above 16,600, the market expects to gain momentum, leading to an upside projection till 16,700 level. Technical indicators suggest a volatile movement in the market in a small range between 16,500-16,700.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.