Taking Stock | Market logs gains for second consecutive day; oil & gas, metal counters shine

© Nishant Kumar Taking Stock | Market logs gains for second consecutive day; oil & gas, metal counters shine

Key indices the Sensex and the Nifty extended their gains into the second consecutive session on December 14 amid mixed global cues ahead of the US Fed meet outcome.

The market opened in the green but remained rangebound as investors restricted their bets to select heavyweights. The benchmarks  Sensex and Nifty, however, did hit their record highs again of 46373.34 and 13,597.50, respectively.

The Sensex ended 154 points, or 0.34 percent, higher at 46,253.46 and the Nifty closed the day with a gain of 44 points, or 0.33 percent, at 13,558.15.

Mid-caps and small-caps outperformed the benchmarks. The BSE midcap and smallcap indices logged gains of 0.79 percent and 0.74 percent, respectively.

ONGC, Larsen & Toubro, NTPC, ICICI Bank and Sun Pharma closed as the top gainers, while Mahindra and Mahindra, Bajaj Auto, Tech Mahindra, Bajaj Finserv and HDFC Bank were the biggset Sensex laggards.

For the short-term, analysts believe global cues will remain the top trigger for the market.

“The domestic market is expected to gain its momentum from the global market due to an eventful week ahead with Britain and EU moving for a no-deal Brexit and the US markets awaiting the outcome of the Fed meeting,” said Vinod Nair, Head of Research at Geojit Financial Services.

On the technical front, the range of 13,600-13,650 appears to be a crucial resistance for the Nifty.

“The Nifty formed a Doji candle for the third consecutive session, hinting at indecision in the markets. The index has formed a good base near the 13,500-13,440 zone. Holding above this level, we may see bullish momentum to continue towards the immediate hurdle zone of 13,600-13,650 zone. Below 13,400, we may see some immediate trend reversal,” said Rohit Singre, Senior Technical Analyst at LKP Securities.

Stocks & sectors

Among the sectoral indices, BSE realty (down 0.95 percent), auto (down 0.95 percent) and telecom (down 0.08 percent) ended in the red. Rest all settled with gains, with capital goods rising more than 2 percent and industrials, utilities, oil & gas and metal logging gains of over a percent each.

A volume spike of more than 400 percent was seen in Cipla and Bata India. Indraprastha Gas saw a volume spike of over 300 percent while Mahanagar Gas saw a volume spike of over 100 percent.

Long buildup was seen in HPCL, NMDC, Larsen & Toubro, Bata India and Cummins India and short buildup in Bandhan Bank, Eicher Motors, DLF and Hero MotoCorp.

Over 300 stocks, including Nestle India, Tata Steel, Titan, Adani Ports, Dixon Technologies, Colgate-Palmolive, Godrej Properties, SAIL, Jubilant FoodWorks, Marico and Cyient, hit their 52-week highs on BSE.

Over 500 stocks, including Intellect Design Arena, Welspun India, Adani Power, Coral India Finance, Sical Logistics and Alchemist, hit their upper circuits on BSE.

Technical view

After hitting a new high, the Nifty failed to hold gains at higher levels and drifted towards 13,480. It formed a small-bodied candle on the daily scale as buying was visible at lower levels but momentum was missing at higher zones.

“Now it has to continue to hold above 13,350 to witness an up-move towards 13,650 then 13,750, while on the downside, support exists at 13,400 then 13,300,” said Chandan Taparia, Vice President and Derivatives Analyst at Motilal Oswal Financial Services.

“On the options front, maximum Put OI is at 13,000, followed by 13,200 strike while maximum Call OI is at 13,000, followed by 13,500 strike. Marginal Call writing is seen at 13,600 then 13,900 strike while Put writing is seen at 13,200 then 13,500 strike. Options data suggests an immediate trading range in between 13,200 to 13,750 zones,” Taparia said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.