Markets extend winning streak; Adani stocks rise for fourth day; Tata Motors, NTPC, Power Grid top gainers

Indian market extended its rally at the start of this week with Sensex regaining its 60,000 psychological mark and Nifty 50 inching closer to 17,800 levels. Fears of rate hikes and uncertainties in Adani Group seem to have flavoured out which led to the return of bulls in domestic equities. On Monday, a broad-based buying was recorded across sectoral indices with oil & gas, IT, and auto stocks taking the lead. Additionally, except for cement businesses, all other Adani stocks continued to witness an upside which further bolstered the market’s mood.

Sensex closed at 60,224.46 up by 415.49 points or 0.69%. Nifty 50 ended at 17,711.45 higher by 117.10 points or 0.67%. During the trading session, Sensex touched an intraday high of 60,498.48 and the Nifty 50 clocked a high of 17,799.95.

Tata Motors was the top gainer surging by nearly 2.8% on BSE, followed by NTPC and Power Grid which were up by 2.5% and 2.3% respectively. Stocks like Bajaj Finserv, Infosys, Asian Paints, and HDFC also contributed to the upside by zooming between 1-5%.

On the other hand, Tata Steel was the top laggard with a downside of 1.22% followed by L&T, IndusInd Bank, and Sun Pharma.

Adani Group stocks gained for the fourth consecutive day. Flagship firm Adani Enterprises stock rose 5.5%, while Adani Ports picked up nearly 1%. Other Adani-named stocks such as Adani Wilmar, Adani Power, Adani Total Gas, Adani Green Energy, and Adani Transmission hit yet another 5% upper circuit each. In the media business, NDTV’s share price also gained by nearly 5%. However, in the cement business, Ambuja Cements was down by 1.7% and ACC stock tumbled by 1.5%.

In terms of sectoral indices, on BSE, the IT index soared over 364 points, while Oil & Gas rallied nearly 329 points. The auto index was up by 285 points. In the broader market, midcap and smallcap indices also gained by nearly a percent.

Last week, on Friday, Sensex and Nifty 50 advanced by over 1.5% each. While the benchmarks ended the week gaining around 1% each.

As markets extend their rally, equity investors got richer by ₹5.5 lakh crore as the total market capitalisation of all BSE-listed stocks rose to ₹265.5 lakh crore on Monday.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, “The relief rally continued for the second straight session backed by a sharp upsurge in energy stocks like power, oil & gas that helped benchmark Sensex end above the psychological mark of 60,000.”

Going forward, Chouhan added, “there is some amount of bargain buying seen after the recent sell-off but the overall sentiment still remains that of caution with a negative bias as larger worries related to macroeconomic woes and geo-political tension still pose a significant threat to markets. Technically, 17800-17900 could be the immediate profit booking zone for the bulls while 17650-17600 would be the sacrosanct support zone for the traders. However, below 17600 uptrends would be vulnerable.”

While Rohan Shah-head technical analyst at Stoxbox said, “intraday, traders can look for long opportunities only above the resistance level of 17,800 & the price should sustain above 17,800 for 15 minutes to confirm long. Traders can look for fresh shorts only if nifty breaks the 17,640 level & remains below for 15 min to ensure short.”

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