Nifty tops 19,700; Sensex regains 66,000; IIFL Securities jumps 11%, Vedanta dives 7%

Domestic equity markets staged a smart recovery on Wednesday, thanks to buying in select blue-chip stocks. BSE Sensex gyrated in a range of 625 points, while the Nifty50 index recovered more than 160 points from day's low.

The debutant of the day, Signature Global (India) and Sai Silk (Kalamandir) delivered decent performance in their maiden trading sessions. Signatureglobal settled 19 per cent higher at Rs 458.40 after listing at Rs 445, while Sai Silks rose over 10 per cent to Rs 244.85 after a tepid listing for the day.

For the day, BSE's barometer Sensex gained 173.22 points, or 0.26 per cent, to settle at 66,118.69. NSE's Nifty50 settled jumped 51.75 points, or 0.26 per cent, to end at 19,716.45. Broader markets outperformed the headline peers as BSE midcap and smallcap indices settled rose about a per cent each. Fear gauge India VIX jumped about 4 per cent to 11.59-level.

Nifty opened lower and came down towards 19,550 which is the strong support and 50-DEMA levels. Nifty made a low of 19,554 and bounced from the support mentioned and closed above the initial resistance of 19700 near day’s high at 19716.45 levels, said Deven Mehata, Equity Research Analyst at Choice Broking.

"Nifty has made a strong bullish hammer candle with a bullish engulfing pattern on daily charts indicating bullish momentum. Index has strong support around the 19,550-19,600 zone. Coming to the OI Data, on the call side, the highest OI observed at 19,800 followed by 19,900 strike prices while on the put side, the highest OI is at 19,600 strike price," he added.

On a sectoral front, only Nifty financial services and consumer durable index settled in red. Among the gainers, the Nifty pharma and healthcare indices gained more than a per cent each. The Nifty PSU bank and the Nifty realty indices were other key sectoral gainers for the day.

Markets remained volatile for yet another session and ended marginally higher. After the initial downtick, Nifty drifted further lower in early hours but recovery in select heavyweights not only pared losses but also pushed the index in the green. A mixed trend continued on the sectoral front, while broader markets outperformed. Ajit Mishra, SVP - Technical Research at Religare Broking.

In the Nifty50 pack, Larsen & Toubro, Coal India and ITC gained about 2 per cent each. Cipla, LTIMindTree, Maruti Suzuki, Reliance Industries, Sun Pharma, IndusInd Bank, SBI Life Insurance, Adani Ports, Adani Enterprises and Apollo Hospital Enterprises gained more than a per cent each.

On the downside, Titan and Grasim Industries dropped more than a per cent each. Hero MotoCorp, State Bank of India, ICICI Bank and Nestle India were among the other key laggards for the day. Bharat Petroleum, HDFC Bank, Bajaj Auto and Tata Consumer Products also posted significant cuts.

The market inched higher in the second half, driven by positive openings in European markets. Concerns about global interest rates and elevated oil prices are being balanced by several domestic factors, such as promising economic growth prospects and the potential for strong earnings, which validate the premium valuation, said Vinod Nair, Head of Research at Geojit Financial Services.

"The FMCG and Pharma sectors outperformed, with investors adopting a defensive approach to navigate global challenges. However, persistent outflows of foreign funds and rising US bond yields are expected to keep the broader indices in bleak terrain, in the near-term," he said.

A total of 3,799 shares were traded on BSE on Wednesday, of which 2007 settled with gains. 1,641 stocks ended the session with cuts while 151 shares remained unchanged. A total of 295 shares hit their upper circuit, whereas the 195 shares tested the lower circuit levels for the day.

In the broader markets, Rajnish Wellness gained about 18 per cent, while Omaxe surged about 17 per cent for the day. Gravita India and Shreyas Shipping settled 15 per cent higher each for the day. IIFL Securities rallied more than 11 per cent, while Tata Investment, Ujjivan Small Finance Bank and BL Kashyap and Son added 9 per cent each.

Among the losers, Vedanta crashed 7 per cent for the day, while EKI Energy Services, GRM Power and Urban India, Jai Balaji Industries hit lower circuit of 5 per cent each. Repro India, NIIT, Prataap Snacks and ADF Foods declined 4 per cent each for the day.

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