Market Movers: Motherson tanks; HDFC Life up 4.5%; 60 stocks give 'buy' signals

NEW DELHI: The bulls kept their grip tight on Dalal Street on Friday as the domestic equity indices gained for the third straight session, buoyed by strong global cues even as coronavirus cases continued to surge across the world.

A solid monthly employment report in the US and India’s services PMI data seem to indicate that the worst of the lockdown impact is over. However, analysts said any extension or resetting of the lockdown measures, due to increased infections, could undo the gains.

“In spite of improving economic data, markets are still largely moving on hope rather than on any real change in ground realities. With intraday volatility increasing, investors are advised to remain cautious," said Vinod Nair, Head of Research at Geojit Financial Services.

Here is a lowdown on what happened in Friday’s session:

Auto stocks continue to gain
Thanks to month-on-month recovery in sales, auto stocks continued to register gains. Shares of Bharat Forge, Eicher Motors, TVS Motor, Balkrishna Industries, Hero Moto, Bajaj Auto and Tata Motors rose in the range of 1-7 per cent.

Motherson Sumi restructures biz
Investors gave a thumbs down to Motherson Sumi Systems’ business reorganization plan, under which it will demerge its domestic wiring harness business into a new company and merge SAMIL (Samvardhana Motherson International Limited) with itself. Share price of the company dropped 5.35 per cent to Rs 98.10.

Nifty50 to get new member
Shares of HDFC Life Insurance Company jumped 4.42 per cent to Rs 572.15 after NSE Indices, an arm of National Stock Exchange, decided to include the stock in flagship Nifty 50. HDFC Life will replace Vedanta, which has got shareholders’ approval to be delisted from exchanges.

Insider trading: Mavi Ind, Capital Trust
Sharad Kumar, a promoter of Mavi Industries completely exited the company selling about 4.25 lakh shares while another promoter Krishna Kumar acquired 7.66 lakh shares of the company. The stock fell 4.70 per cent to Rs 3.65 after the transactions. On the other hand, promoters of Capital Trust bought 18,000 shares of the company, following which the stock added 1.23 per cent to Rs 82.

Stocks @52-week highs
Over 130 stocks hit their 52-week high levels during the day. They included Balaji Amines, Balkrishna Industries, Bayer Crop, IDBI Bank, ITI, Reliance Power, Salasar Technology, Suzlon Energy, Syngene International and MCX, among others.

Stocks that gave ‘buy’ signals
As many as 60 stocks gave ‘buy’ signals as prices crossed above the signal line on the MACD indicator. They include names like Phillips Carbon, Eros International, Reliance Industries, Tata Consumer Products, BEML, Tech Mahindra and Escorts, among others.

Stocks that gave ‘sell’ signals
On the other hand, as many as 125 stocks gave ‘sell’ signals as they crossed below the signal line on the MACD indicator. They include Indian Overseas Bank, PNB, Future Consumer, Just Dial, Central Bank, Zee Leans and Sun TV, among others.

Where is Nifty headed?
Nifty closed the week with gains of more than 2 percent forming a bullish candle on the weekly chart. Index has good resistance near the 10700-10800 zone and one can use mentioned levels to book profit on every rise, said a technical analyst. “Support shifted to 10,500-10,400 zone so until it holds above these levels one can use buy on dip,” said Rohit Singre, Senior Technical Analyst at LKP Securities.