The 30-share pack Sensex added 584.41 points, or 1.16 per cent, to close at 51,025.48. The intraday move was volatile with a low of 50,396.10. Its broader peer NSE Nifty advanced 142.20 points, or 0.95 per cent, to 15,098.40.
“We expect the prevailing consolidation phase to end soon however a lot depends on the performance of the global markets. Meanwhile, participants should limit leveraged trades and prefer a hedged approach. Among the sectors, IT and select banking counters look promising while others may continue to trade lackluster. Participants should align their positions accordingly,” said Ajit Mishra, VP – Research, Religare Broking.
Here are major movers and shakers of the day:
VIX plunges
India VIX, the barometer of nervousness in the market, cooled off for another day but still remained at elevated levels. The index dropped 8.83 per cent to close at 22.49. Traders will keep a keen eye on the indicator as any rise will induce panic.
IPO watch
The initial public offer (IPO) of Easy Trip Planners generated great interest despite being aggressively priced. The issue was subscribed 7.12 times on the second day of bidding. Meanwhile, two companies–Craftsman Automation and Laxmi Organic–said bidding for their offer will begin next week.
Metals lose sheen
Traders booked profits in metal stocks, which have run up significantly in the last few weeks. Nalco was the biggest loser, down nearly 6 per cent. SAIL, Hindustan Zinc, Moil, Jindal Steel and Welspun Corp dropped 3-5 per cent.
falls
Shares of BPCL tanked 5 per cent amid reports that the state-owned company was looking to sell up to 8.68 crore shares, or 4 per cent of the company equity, through a block deal on Tuesday. The company, according to bankers, had set a floor price of Rs 435 per share, a 6.8 per cent discount to Monday’s closing price of Rs 467.
Stocks@52-week highs
Over 270 stocks hit 52-week highs on Tuesday. Adani Power, BHEL, IRCTC, Mindtree, NMDC, UPL, SBI Life Insurance, HDFC Life Insurance, Grasim Industries, Trent and AU Small Finance Bank were among the top names.
Who gave sell signals?
Nearly 75 stocks flashed ‘sell’ signals on Tuesday as their prices fell below the MACD signal line. SAIL, Trident, Himadri Speciality, Tata Steel BSL, IDFC, Rail Industries, Concor and Mangalore Chemicals were among them.
Where is market headed?
The hourly Bollinger Bands are about to expand after a contraction, which suggests that a trending move can develop. Thus, the index looks set to test the swing high of 15,273 with potential head towards the all-time high of 15,431. On the other hand, the support zone shifts a bit higher to 14,860-14,900, said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
