Nifty hits century; Sun TV & Indiabulls Housing possible entrants in ban period, Hester Biosciences soars 15 per cent
Update: Indian markets continued gaining on Friday. Nifty is trading higher by 100 points while Sensex has jumped over 250 points to trade above the 49,000 mark.
Overall, market breadth is quite healthy as against two advancers, there is one decliner. The real action in today’s session is seen in the broader markets with Nifty Mid-cap and Small-cap gaining more than one per cent thereby, outperforming the frontline indices.
Among stock-specific action, Hester Biosciences and Bajaj Electricals have logged a fresh all-time high. Hester Biosciences is trading with double-digit gains of over 15 per cent, while Bajaj Electricals is up by nearly 8 per cent.
In the derivative segment, Sun TV and Indiabulls Housing Finance are two probable stocks that can enter into a ban period.
After experiencing volatility in the initial minutes of trading, the bulls seem to have found their mojo back on the D-Street. Sensex was up by 210 points, trading above the 49,000 mark while Nifty was up by 86 points, trading above the 14,650 mark.
Nifty has crossed Monday’s session high and is attempting to fill the opening downside gap of Monday. Around 39 out of 50 stocks of Nifty 50 were trading in green. All the sectoral indices were also trading in green with Nifty IT and Nifty Auto being the top gainers.
Among stock-specific action, DCM Shriram zoomed 12 per cent to log a fresh 52-week high. The volume recorded was the highest since December 21, 2020. In the initial hour of the trade itself, the stock has recorded a volume of close of 9.5 lakh.
Thursday turned out to be a trademark weekly expiry day as high volatility was experienced throughout the day.
Nifty opened the session with an uptick but in no time, it turned negative and continued to inch lower. However, buying in the second half of the trading in the banking & financial stocks helped the indices to reclaim 14,550 and Nifty finally settled near the day’s high, up by 0.53 per cent.
The price action of the day formed a small-bodied bullish candle with a long lower shadow, which signifies buying witnessed from the lower levels. The key takeaway from Thursday’s session was that Nifty managed to close above the prior session high. As we had mentioned in our previous write-up also, historically, the index has witnessed a couple of days of upmove after the formation of an inside bar. In line with that, it seems Nifty would replicate its prior pattern of moving higher after forming an inside bar this time as well. However, the last two days of price action are within Monday’s range, which clearly indicates that despite two days of upmove, the bulls have not been able to overpower the bears.
Going forward, the immediate resistances are placed at 14,638 (50-EMA) as well as at Monday’s high of 14,665. Above this zone, Nifty may attempt to fill the opening upside gap of April 12. On the downside, the level of 14,480 is likely to act as an immediate support level, followed by the major support seen at 14,300, where the 100-DMA is placed.
On the monthly timeframe, Nifty has formed a Doji candle in the month of March and on the weekly chart as well, Nifty formed an indecisive candle Doji in the prior week. Moreover, on the weekly chart, Nifty is showing the formation of consistent lower highs with horizontal support placed around 14,250 levels over the last two months. Hence, it’s important to watch whether Nifty would be able to continue with its lower top formation in the near term or negates by closing above the high of the prior week's Doji candle.