Sensex, Nifty Highlights on August 26: Benchmark indices Sensex and Nifty ended on a bullish note on Wednesday, amid positive global equities. Extending gains for the fourth straight session, the S&P BSE Sensex ended 230 points higher at 39,073. The Nifty 50 index ended 77 points higher at 11,549. Meanwhile, April-June quarterly earnings announcements by Indraprastha Gas, Gillette India, Gujarat Mineral Development Corporation, Dolat Investments, NACL Industries and Sharda Motor Industries will also set the tone for the stock market today. Yesterday, the S&P BSE Sensex ended 44 points higher at 38,843. The Nifty 50 index closed mere 5 points higher at 11,472.
Here's a look at the updates of the market action on BSE and NSE today
3. 44 PM: Closing session
Benchmark indices Sensex and Nifty ended on a bullish note on Wednesday, amid positive global equities. Extending gains for the third straight session, the S&P BSE Sensex ended 230 points higher at 39,073. The Nifty 50 index ended 77 points higher at 11,549.
3. 39 PM: Nifty technical outlook
Commenting on Nifty's technical outlook, Rohit Singre, Senior Technical Analyst at LKP Securities said, "Nifty has shifted its support to 11500-11450 zone as index traded decisively above 11500 zone so existing longs can be hold with 11500 trailing stop out and resistance is coming near 11600-11650 zone which will be immediate profit booking levels.
On Nifty Bank, he added,"Nifty bank closed a day at 23434 with gains of 1.48 percent and formed a bullish candle on daily chart, supports are coming near23230-23000 zone and resistance is coming near 23600-23850 zone".
3. 20 PM: TCS shares fall 1%
Shares of TCS were trading lower in Wednesday's opening trade after S&P Global Ratings revised its outlook for the IT major to stable from positive given the subdued global IT spending estimates.
"We are revising our outlook on TCS to stable from positive. At the same time, we affirmed our 'A' long-term issuer credit rating on the company," S&P Global Ratings said.
3. 10 PM: PNB shares gains 1%
Share price of Punjab National Bank gained 1.5% in Wednesday's trade after the lender informed the Ministry of Corporate Affairs (MCA) that it received Rs 24.33 crore ($3.25 million) as the first tranche of recoveries related to the Nirav Modi case.
"Punjab National Bank has informed the ministry of corporate affairs (MCA), which spearheaded the corporate governance litigation in a foreign jurisdictional court, that it has received $3.25 million (the equivalent of Rs 24.33 crore) as the first tranche of recoveries. Upon liquidation of the debtors' assets by the US Chapter 11 Trustee, a sum of $11.04 million (the equivalent of Rs 82.66 crore) is available for distribution to unsecured creditors, including PNB," MCA said in a release.
2. 55 PM: Market outlook
Commenting on the current market outlook, Yash Gupta, Equity Research Associate, Angel Broking said," The rally on the Sensex is led by S&P BSE AUTO (Up 1.6%), S&P BSE BANKEX (Up .66%), while S&P BSE Telecom (down .2.04%) S&P BSE Basic Materials (Down 0.16%) and S&P BSE Healthcare (Down 0.14%) are witnessing some pressure. Rally in Auto stock led by Tata Motors and Hero motocorp in hope of GST rate reduction.The market is range bound as mix clues from global market. We expect the broader markets to be in range bound and may see some pressure due to sector specific profit booking."
2. 41 PM: Market rises further
Extending gains for the third straight session, benchmark indices Sensex and Nifty traded on a bullish note on Wednesday, amid positive global equities. Tthe S&P BSE Sensex gained 200 points higher at 39,050. The Nifty 50 index gained 67 points higher at 11,540.
2. 13 PM: Market rises further
Extending gains for the third straight session, benchmark indices Sensex and Nifty traded on a bullish note on Wednesday, amid positive global equities. Tthe S&P BSE Sensex gained 110 points higher at 38,954. The Nifty 50 index gained 45 points higher at 11,518.
1. 53 PM: Global markets
Asian markets were trading mixed taking cues from movements in US markets overnight. US markets closed mostly higher as investors cheered the progress in trade talks between US and China. Also data showed 36% rise in sales of newly built homes in US last month.
European markets were trading mixed today after giving up early gains as investors focused on US-China trade talks and economic data.
1. 48 PM: Top gainers and losers
Bajaj Auto, followed by Bajaj Finserv, IndusInd Bank, M&M, PowerGrid, Bajaj Finance, Axis Bank, Kotak Bank and ICICI Bank were among the top gainers today. On the other hand, Bharti Airtel, Asian Paints, HCL Tech, HDFC and TCS were among the laggards.
1. 36 PM: Market Update
Benchmark indices erased early gains and traded flat with a positive bias by Wednesday's afternoon session, amid mixed global equities. The S&P BSE Sensex was trading 5 points higher at 38,835. The Nifty 50 index, on the other hand, gained 11 points to 11,484.
1. 28 PM: Federal Bank update
Commenting on Federal Bank, Ajit Kumar Kabi, Banking Research Analyst at LKP Securities said," Despite substantial improvement in all major operating matrix, profitability may remain under pressure in FY21 led by the higher provision for LuM. We have incorporated higher provision requirement along with steady growth in balance sheet and thus expect it to deliver RoA/ RoE of ~1%/~13% by FY22E. In our view, maximum negatives are in the price and thus we recommend BUY with a TP of Rs 71 (based on 0.8x FY22E Adj. BVPS); a potential upside of 27%."
1. 17 PM: Birla Tyres stock rises 5%
Birla Tyres share hit upper circuit of 5% in early trade today after the firm said its board would meet on August 28 (Friday) to consider capital raising option. The tyre manufacturer plans to raise an amount aggregating up to Rs 1,100 crore by way of equity or debt instruments, including non-convertible debentures, among others.
Buoyed by the fund raising plan, share price of Birla Tyres rose up to 4.94% to Rs 23.35 intra day on BSE. The share opened with a gain of 4.49% at Rs 23.25 against previous close of Rs 22.25.
12. 53 PM: Nifty Bank outlook
Commenting on Bank Nifty, Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said," Banking space has gained some strength in last 3-4 days and it is clearly not letting the market fall. It has now reached it's recent crucial high around 23200-23250. Now going ahead, it would be interesting to see whether BankNifty still holds Nifty higher or a failure to surpass 23250 triggers some correction. Apart from this, some profit taking was seen in the broader market and hence, one needs to be watchful there as well."
12.39 PM: Rupee gains 7 paise to 74.33 per dollar
The rupee appreciated 7 paise to 74.26 per dollar in early trade on Wednesday's opening trade, supported by foreign fund inflows and optimism surrounding trade the deal between the US and China.
The local unit opened at 74.34 per dollar and gained ground to touch 74.26, up 7 paise over its previous close, of 74.33 against the US currency, even as the domestic equity market was trading in the negative territory.
12.22 PM: Real estate sector update
Speaking on outlook for real estate sector, Arjun Aggarwal, Managing Director, Bhartiya Urban said,"With the businesses across verticals gradually coming back on track, the real estate industry too is witnessing some positive signs of revival. However, amidst this revival, the industry is also undergoing rapid transformations. What we see now is a decisive leaning towards home ownership rather than paying heavy rentals thereby leading towards the growth of the residential real estate market. This shift which is gaining momentum during the pandemic is based on numerous reasons including the financial rationale for suburban homeownership backed by the need for safety and hygiene in the current situation and a drop in home loan interest rates. "
12. 19 PM: Nifty technical indicators
Expressing views on Nifty's near term technical insights, Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said," Going ahead, a sustainable move below 11420 should be considered as an exit opportunity for existing longs and aggressive traders can opt to short as well. Below this, 11350-11300 are the next levels to watch out for. On the upside, 11500-11525 remains to be an immediate hurdle and in case if it extends further, we will still avoid participating in it.
12.05 PM: Two-wheeler shares gain today
Shares of Hero MotoCorp, Bajaj Auto and TVS Motor gained up to 7% in early trade after FM Nirmala Sitharaman said GST Council would consider the proposal to reduce tax on two-wheelers. Currently, goods and services tax (GST) rate on motorcycles and scooters stands at 28 per cent.
Manufacturers have been urging the government to lower GST rate on motorcycles and scooters arguing that it was not a luxury good.
11. 49 PM: Market Update
Erasing early gains, benchmark indices Sensex and Nifty turned volatile on Wednesday, amid mixed global equities. The S&P BSE Sensex was trading 34 points lower at 38,809. The Nifty 50 index, on the other hand, gained mere 1points to 11,474.
11. 32 AM: Dollar index today
The dollar index held muted against a basket of major Asian currencies, as investors awaited US central bank speech from Federal Reserve Chairman Jerome Powell, scheduled on Thursday.
11. 28 AM: Market outlook
As per Geojit Financial, negative divergence seen in daily charts is yet to manifest in shorter periodicities, and towards this end, the upsides continue to be in play aiming 11800. There is a clear slow down that is evolving, but another range expansion is likely to play out in the next few days, which makes it important to continue having the downside marker placed near 11400.
11.14 AM: Coronavirus toll
In India, the death toll touched 59,612 and total coronavirus cases reaching 32.34 lakh as of Tuesday. Worldwide, there were 240 lakh confirmed cases and 8.23 lakh deaths from COVID-19 outbreak.
11. 03 AM: MCX Gold
On the Multi-Commodity Exchange, gold September Futures traded 0.31% or Rs 156 higher at Rs 51,080, after hitting an intraday high of Rs 51,184 against the previous close of Rs 51,165 per 10 gm. MCX gold futures currently trade almost Rs 5,026 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7.
10. 56 AM: Gold outlook
As per Geojit Financial Services, the immediate support range of $1880-1900 levels seems to be hold and hence expect a recovery uptick for the day. However, it needs to close above $1960 to strengthen the momentum. A direct drop below $1880 is a signal of weakness.
10. 30 AM: FDC drug launch update
Commenting on new drug launches by FDC Ltd which will be used for treatment of Covid-19, Mr. Yash Gupta, Equity Research Associate, Angel Broking said,"FDC Limited announces the launches Two variant's of Favipiravir Drug for Covid-19, PiFLU and Favenza- which will be used to treat mild to moderate cases of COVID-19 in India. Favipiravir has been approved by the Drugs Controller General of India (DCGI) for the treatment of patients with mild to moderate COVID-19 disease. FDC's PiFLU and Favenza are currently available across the country. This will be a very positive development for the FDC."
10. 12 AM: Gold outlook
Commenting on gold outlook, Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said,"As expected yesterday Gold prices fell by 0.67% and closed at Rs 50,924 levels. Silver also fell by 2.38% and closed at 64,007 levels. In international market Gold is trading at $1927 levels and silver is trading at $26.36 levels.
Today gold prices are expected to trade on a negative note on the back of strength in Dollar. Global equity market is trading higher as investors cheered signs of progress in U.S.-China trade negotiations and following a fresh Wall Street rally and also positive cues in front of vaccine of covid-19. The U.S. Food and Drug Administration's move to allow the blood plasma treatment was hailed by President Donald Trump.
As of today, traders can go for sell in gold at Rs 51,400 levels with the stop loss of Rs 51,950 levels for the target of 50,600 levels. They can also go for sell in Silver at Rs 65,200 levels, with the stop loss of 66,800 levels and for the target of 63,000 levels. Traders can use sell on rise strategy in Gold and Silver. In the Bullion index Bulldex traders can also go for sell at 16050 with the stop loss of 16150 and for the target of 15880."
10. 07 AM: GST rate cut
Commenting on the proposed GST rate cuts on two-wheelers, Jyoti Roy, DVP- Equity Strategy, Angel Broking said," There is an increasing likelihood that the GST council may take up the issues of cutting GSt rate on two wheelers from 28%. The finance minister in a CII meeting acknowledged the fact that two wheelers is neither a sin good nor a luxury good. Given that the 28% GST bracket has specifically been created for luxury and sin goods there is likelihood that the Government may take up the issue in the next GST council meeting which will have to take the decision. If the GST rate cut on the two wheeler industry is approved by the GST council then it will be positive for the industry. We expect two wheeler stocks to react positively to the news today. We continue to maintain our positive stance on the two wheeler sector with Hero Motocorp as our top pick in the sector.For MCX Gold August, resistance is placed at 51,580 and support is at 49,960. For MCX Silver August futures, the resistance is at 69,150 and the support is placed at 66,150."
10. 47 AM: Procter & Gamble Hygiene Q1 update
"For 4QCY20 (June closing), Procter & Gamble Hygiene and Health Care (P&G)s top-line growth was flat yoy to Rs635cr (better than expected). Top-line was negatively impacted mainly due COVID-19 lockdown. On the operating front, the company reported improvement in margins, up 722bps yoy at 17.4%. Operating margin was up mainly due to better product mix. On the bottom-line front, P&G reported growth of 14% yoy to Rs69cr due better operating performance. Going forward we expect demand for hygiene products to remain intact (despite a slowdown in economy). Hence, we are positive on stock."
9. 57 AM: Stocks to watch today on August 26
TCS, SBI, PNB, JMC Projects, Procter & Gamble Hygiene among others are the top stocks to watch out for in Wednesday's trading session
9. 46 AM:BSE Sensex derivatives hits new high
BSE, the country's largest stock exchange, has registered a new all-time single day trading turnover record of Rs 1,07,673 crore on August 24, 2020, on its equity derivatives segment, Sensex 50 contracts. This happens to be the fourth consecutive session when the daily turnover has crossed 1 lakh crore. The previous high was Rs 1,03,117 crore recorded on August 21, 2020.
"The Sensex 50 contracts has achieved market share of 16.52 per cent against comparable index derivatives traded in India," the BSE said.
9. 34 AM: Global markets
Overseas, Asian stocks are trading mixed on Wednesday as markets cheered signs of progress in US-Sino trade negotiations but remained cautious about the broader economic outlook.
Top US and Chinese officials reportedly reaffirmed their commitment to a trade deal that had appeared on shaky ground because of worsening bilateral ties following weeks of escalating tensions between the world's two largest economies. Wall street also closed mixed, taking cues from positive developments in U.S-China trade and fresh progress in the medical battle against the coronavirus pandemic.
9. 26 AM: Opening session
Extending gains for the third straight session, Sensex and Nifty opened on a bullish note on Wednesday, amid positive global equities. Tthe S&P BSE Sensex gained 85 points higher at 38,927. The Nifty 50 index gained 29 points higher at 11,501.
9. 13 AM: Nifty outlook
As per Reliance Securities, NSE-NIFTY ended on a flat to positive note post a st tbrong start for the week. The index rose to almost six month high on back of strength in the PSU banking sector and frontline majors. Due to further rise in the index, its key technical indicators on the near-term timeframe chart remained in favaour of bulls. This could lead the index towards 11,537 and 11,614 levels in the near-term. In case of decline, the index will initially find support at 11,252 level and then at 11,111 mark, which coincides with its 20-day EMA and recent swing low, respectively.
As for the day, support is placed at around 11,422 and then at 11,371 levels, while resistance is observed at 11,524 and then at 11,576 levels.
9.09 AM: Earnings Today
Indraprastha Gas, Gillette India, Gujarat Mineral Development Corporation, Dolat Investments, NACL Industries and Sharda Motor Industries are among companies which will disclose their Aptil-June quarter results today.
8. 55 AM: Technical Insights
Nifty50 - the benchmark index traded above the crucial support level of 11350 but resistance was observed at 11,406 and 11,440 levels.
On the near term outlook for market indices, Ajit Mishra, VP - Research, Religare Broking said, "The recent buoyancy in the banking space is helping the index to inch higher while other index heavyweights are seeing a pause. We reiterate our bullish view on markets and suggest continuing with the 'buy on dips' approach."
8. 50 AM: FII/ DII action
Foreign portfolio investors (FPIs) bought shares worth Rs 1,481.20 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 172.97 crore in the Indian equity market on 25 August, provisional data showed.
8. 40 AM: Rupee closing
Amid volatility in the equity market, Indian rupee that opened 15 paise higher gave up gains and ended flat at 74.32 per dollar, as against yesterday's close of 74.31, after hitting day's low of 74.51 per US dollar.
8. 45 AM: Market outlook
Commenting on markets closing today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," The market was in a see-saw mood all of today. We travelled in a narrow range of 50-70 points throughout the day but the bias remained positive until closing time. We are still aiming at reaching the 11,700 mark during the course of the next couple of weeks and 11,300 continues to remain the support for the Nifty."
8. 30 AM: Closing
Domestic benchmarks erased early gains on account of mixed global cues and ended tad higher on Tuesday, amid heavy buying in banking and financials. Extending gains for the third straight session, the S&P BSE Sensex ended 44 points higher at 38,843. The Nifty 50 index closed mere 5 points higher at 11,472.