Taking Stock: Nifty manages to close above 11,900 in a volatile session, realty stocks shine

The Nifty failed to hold 12,000 in a highly volatile session on October 21 but helped by metal and realty stocks, the equity benchmark managed to close above 11,900.

The Sensex jumped 162.94 points to end at 40707.31 and the Nifty closed with gains of 40.90 points at 11937.70.

"Indices managed to close in the green today but not without its share of hiccups over rumours of waiver of interest on loans. Banks and metals provided support even as we saw profit booking in several stocks during the afternoon trade. Select PSU names were sought after by funds in today’s volatile session," said S Ranganathan, Head of Research at LKP Securities.

Sectorally, action was seen in realty, power and metal space while profit-taking was seen in FMCG, IT and auto stocks.

The broader markets underperform benchmark indices. The S&P BSE midcap index was up 0.23 percent while the smallcap index was flat.

The top gainers on the Nifty included Power Grid Corp, Bharti Airtel, Tata Steel, Hindalco and GAIL. The losers pack included names like Britannia, TCS, SBI Life Insurance, Hero MotoCorp and HDFC Life.

Stocks & sectors

Sectorally, action was seen in the BSE Realty, which was up over 4 percent. The BSE metal index rose 2.2 percent and the power index rose 1.5 percent.

Selling pressure was seen in the BSE FMCG index, which slipped 0.9 percent. The IT index was down 0.44 percent and the auto index fell 0.2 percent.

A volume spike of more than 100 percent was seen in Escorts, PVR, SAIL and Jindal Steel.

Long build-up was seen in stocks like Godrej Properties, Escorts and UltraTech Cement. Short build-up was seen in stocks like Britannia, Wipro and Hero MotoCorp.

Berger Paints, Butterfly Gandhimathi, MCX India and Havells were among more than 100 stocks on the BSE hit a fresh 52-week high.

Technical view

The Nifty formed a Dragonfly Doji candle on the daily scale in a highly volatile session and finally closed above 11,900.

Price and data setup suggest that a bounce may be seen but multiple hurdle and supply pressure at higher zones can restrict upside momentum with higher volatility.

“Now it has to hold above 11,800-11820 zones to witness an up move towards 12100 zones while on the downside key support exists at 11,777-11,750 zones,” Chandan Taparia, Motilal Oswal Financial Services told Moneycontrol.