Taking Stock: Fabulous Friday! Sensex up more than 500 points; RIL M-cap crosses Rs 11 lakh crore

The bulls remained in control of D-Street throughout the trading session on June 19 and pushed benchmark indices above their crucial resistance levels. The S&P BSE Sensex rallied 564 points to end the day at 34,772  and the Nifty50 reclaimed 100-DMA to close 168 points higher at 10,257.

Positive global cues and a smart rally in the RIL stock, which took it past the Rs 11 lakh crore market capitalisation, helped markets build on gains.

“Indian markets ignored the potential fallout of India-China tensions and rising number of virus infections to close well above its 100-DMA. The gains were led by Reliance Industries, which alone contributed half of the gains for the Nifty,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“Global cues also supported the markets to close out a news-heavy week. Geo-political tensions may increase volatility in the markets and investors are advised to watch out for the same.”

Sectorally, the action was seen in the realty, energy, oil & gas, and telecom space while profit-taking was visible in IT, consumer durable, and metal index.

On the broader markets front, the S&P BSE Midcap index rose 1 percent while the S&P BSE Smallcap index gained 1.38 percent.

Top Nifty gainers included Tata Motors, RIL, Bajaj Finance and Bajaj Finserv.

Top Nifty losers included HCL Technologies, Vedanta, M&M and IndusInd Bank.

Stocks & Sectors

Sectorally, the S&P BSE Realty index rose 6.3 percent followed by the S&P BSE Energy index that gained 5 percent and the S&P BSE Oil & Gas index closed 2.5 percent higher.

Profit-taking was seen in sectors like IT, and consumer durables.

A volume spike of more than 200 percent was seen in stocks like Ujjivan Financial, Federal Bank, DLF, Equitas, Indiabulls Housing Finance and Adani Enterprises.

Long Buildup was seen in stocks like Hero MotoCorp, Godrej Properties, Bajaj Finserv and Axis Bank.

Short Buildup was seen in stocks like M&M, Vedanta and NIIT Technologies.

Bayer Crop Sciences, RIL, Dixon Tech, Vaibhav Global, Ruchi Soya and Muthoot Finance were among more than 120 stocks on the BSE to hit a 52-week high.

Stocks in news

Reliance Industries stock price jumped over 6 percent to hit a new high after the company said the record investments it received for Jio Platforms and a mega rights issue helped it become debt-free well ahead of its March 2021 target. It also became the first listed company to cross Rs 11-lakh-crore in market capitalisation.

ICICI Bank stock gained over 3 percent after the private sector lender sold a 3.96 percent stake in its insurance arm, ICICI Lombard General Insurance Company Ltd.

HIL share price surged 20 percent after Sunil Singhania's Abakkus Emerging Opportunities Fund-1 bought 1.3 lakh shares (representing 1.73 percent of paid-up equity capital) in the CK Birla Group company.

The Ramco Cements stock jumped over 3 percent after the company reported an 18.43 increase in net profit at Rs 605.70 crore for fiscal 2019-20.

MOIL stock price shed almost 4 percent after the company reported a fall of more than 90 percent in its consolidated net profit at Rs 13.47 crore for the quarter ended March 31, 2020.

City Union Bank share price was down almost 7 percent after the company reported a loss of Rs 95.25 crore for the fourth quarter ended March 2020 due to a spike in bad-loan provisioning.

Technical View

The Nifty formed a bullish candle for the third day in a row. It closed above its 100-DMA placed at 10,094 on the daily charts and also above 10,200 levels.

If the index sustains above the day's low of 10,072 in the coming week, then it can retest swing high of 10,328 registered on June 8, say experts.

On a fresh breakout above 10,328, the bulls shall eventually head to challenge the 200-day moving average, the value of which is placed around 10,917 but before that some resistance can be witnessed in the 10751–827 levels, Mazhar Mohammad of Chartviewindia.in said.

“In case, the Nifty fails to sustain above 10,072 on a closing basis in the next session, then it should undergo some minor consolidation. For the time, position traders should consider booking profits in the next session if the Nifty fails to close above 10,328,” he said.

Disclaimers: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol.