Bulls gain momentum: Mindtree becomes top gainer in futures segment; Premier Explosives buzz on bourses
Market Update at 12:10 PM: Indian markets have extended their morning gains and were seen trading near their day’s high.
Sensex is up by 150 points while Nifty climbed 54 points. Earlier in the day, a majority of the sectors were trading in red but now, the tables have turned and with this, most of them are trading in green with Nifty IT & Nifty PSU Bank gaining more than 1 per cent. Basically, the buying interest in banking & financial stocks has propelled the markets higher in the last one hour.
In the futures segment, the top gainers are Mindtree, PNB, and Petronet. On the other hand, the top losers are Berger Paints, Manappuram Finance, and Cummins India.
Among the stock-specific action, the stock of Premier Explosives Ltd has jumped almost 3.5 per cent after receiving an order from Israel Aerospace Industries (IAI) for manufacturing & supply of warheads for a total value of USD 1,34,935. This is the first order received by Premier Explosives Limited for warheads and it will be executed from the company's new production facility in Katepally (Telangana). The ordered items are expected to be delivered within 12 months.
Market Update at 10:00 AM: The Indian benchmark indices trimmed their early gains and were seen hovering around the neutral line with Sensex inching lower by 16 points, holding just above the 51,000 mark and Nifty trading above the 15,300 mark. Besides, around 29 out of 50 stocks of Nifty 50 were seen trading in the red.
Among the sectoral indices, a majority of the sectors were seen trading in red, led by Nifty Financial Services and Nifty Pharma, while on the other hand, Nifty IT and Nifty Auto emerged as the top gainers. Nifty IT turned out to be the show stopper in the first hour of trade as it is up by 1.66 per cent. In addition to this, all the stocks from the IT index were trading in green.
Among stock-specific action, the stock of Rupa & Company Ltd logged double-digit gains and with this, it has recorded a fresh 52-week high. Interestingly, we are still into the first hour of the trade and the stock has already recorded volume of 27 lakh shares. In contrary to this, its total volume recorded was about 32.88 lakh shares on NSE in the last trading session. Another stock that has recorded a huge spike in price & volume in the first hour of the trade is Syngene, which is up by nearly 5 per cent and its volume recorded is above 7.5 lakh.
After almost two days of sideways action, the bulls were back with full force, amidst which, Nifty managed to end a tad above the 15,300 mark with net gains of 93 points.
One of the major takeaways on Wednesday was the steep rise in India VIX in the later part of the trading session. India VIX jumped more than 10 per cent and is close to 21-mark. This certainly did not go down well as ideally, a positive close would have been much appreciated with a cool-off in India VIX.
The price action of the day formed a bullish candle with a lower shadow. Nifty registered the second-highest closing after February 15. With this, it is now trading well above all its important moving averages. Nifty is trading about 3 to 3.8 per cent above its 21 and 50-DMA, respectively.
Month-till-date, the index gained 4.5 per cent and consequently, it shunned the saying ‘sell in May and go away’. Now, chances are quite bright that we might see a new all-time high in the near term as the index has maintained its rhythm of higher highs & higher lows.
The 14-period RSI has marked a new 14-period high, which is a positive sign. The MACD is bullish and remains above the signal line.
Considering the May series F&O expiry on Thursday, traders brace themselves for bouts of volatility as the latter is like to rear its ugly head during the expiry day.
Talking about the levels, the level of 15,180 would be an important support level for Nifty while on the other hand, the level of 15,435-15,450 could act as a hurdle for bulls.