Early gains fizzle out; Dish TV on cloud nine
Market Update at 2:00 PM: Indian markets slipped into negative terrain amid sell-off in banking and financial stocks.
Nifty PSU Bank and Nifty Bank were down by 1.52 per cent and 1.43 per cent, respectively. Despite trading into negative terrain, the advance-decline ratio continues to favour advancers as a majority of the sectors continue to witness buying interest; however, some have cooled off from higher levels. Besides, Nifty Media continues to surge as it has gained over 3 per cent.
A majority of the stocks in the media sector was trading in the green but only one stock has garnered a lot of interest and that is- Dish TV, which got locked at the upper circuit. With this, it registered a fresh five-month high. Furthermore, the stock has also recorded the highest volume since December 2019.
Among stock-specific action, Hindustan Media Ventures and Schneider Electric Infrastructure got locked at their respective upper circuits.
Market Update at 10:15 AM: The Indian markets witnessed a gap-up opening on Tuesday, aided by favourable global cues and a continued declining trend in the COVID-19 cases in the country.
The key benchmark indices trimmed their gains and were seen trading with gains of less than half a per cent. Having said that, the breadth looks extremely rosy and the testimony of this is that 43 out of 50 stocks of Nifty were trading in green.
Among the sectoral indices, a majority of the indices have seen good buying interest, led by Nifty Metal and Nifty Media while on other hand, Nifty PSU Bank and Nifty Bank were trading in the red.
Among stock-specific action, Shemaroo Entertainment is locked in upper freeze for the second consecutive day. Thangamayil Jewellery, which is one of the fastest-growing companies in India & positioned in the market as a chain of retail jewellery stores across several districts of Tamil Nadu (a state that is said to have the largest shares i.e. 40 per cent of India’s total gold consumption) has jumped more than 15 per cent along with a huge jump in volumes.
Nifty started off the first trading session of the week on a positive note and went on to touch the high of 15,256. However, soon after that, it trimmed its early gains and spent the rest of the day in a capped & defined range. It settled the day with gains of 0.15 per cent and ended just below the 15,200 mark. The broader indices outperformed the benchmark indices with Nifty Mid-cap and Small-cap gaining 0.67 per cent and 1 per cent, respectively.
The price action of the day formed a high wave-like candlestick pattern, which specifies indecisiveness after a reasonable upmove. However, the sequence of higher tops & higher bottom is intact, which indicates routine profit booking at a higher level.
Interestingly, the index moved within the high-low of the first 90 minutes of the day and did not give any clear intraday trading opportunities. As a result, the index did not witness a follow-through day. Usually, after a prolong consolidation, a faster move is seen; however, in the current scenario, we saw only a single trending day and there was no follow-through seen in the subsequent trading sessions. This raises some doubt; however, as long as the index maintains its rhythm of higher high & higher low, it would be prudent to be with a positive bias.
In the upcoming trading session, the level of 15,110 is likely to act as an immediate support level while on the upside, the level of 15,300 may act as a resistance level. We might also see the index moving within this range.