Market Movers: IT, banks back on track; 32 stocks flash buy signals

MUMBAI: IT, banking and Reliance Industries (RIL) drove the benchmark equity indices higher on Friday. Snapping a six-session losing streak, Nifty formed a long bull candle besides the long-range bear candle of the previous session.

Technically, formation of such a pattern indicates a strong comeback of bulls from the lows.

Software stocks resumed their uptrend after a brief decline on Thursday, in a session which saw Sensex rising 835 points to 37,389 points, while peer Nifty climbed 245 points to 11,050 points.

Among stock-specific actions, Vodafone Idea surged as Vodafone won an arbitration case against the Indian government over retrospective tax demand, while Route Mobile continued its winning streak.

Going ahead, market direction will depend on cues about US stimulus measures, the Reserve Bank of India’s monetary policy review, pace of Covid-19 pandemic and developments on the vaccine front.

“The key events to be watched out in the near future would be the covid-19 trajectory in India and abroad, progress on the vaccine front and global market cues. Stimulus measures, if any, in the US could provide support to the markets,” said Sanjeev Zarbade, VP PCG Research, Kotak Securities

“ If the market corrects from these levels, then investors should actively look for accumulating good quality stocks for long term wealth creation,” he added.

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

IT return backs to life:
After a brief pause in the previous session, IT stocks resumed their uptrend. BSE IT index rose 3.63 per cent. Top software exporter Tata Consultancy Services (TCS) rose 3.89 per cent to Rs 2,422.30, while rival Infosys climbed 3.66 per cent to Rs 1,011.15. Peer HCL Technologies jumped 5.01 per cent to Rs 827.50.

Vodafone Idea cheers courtroom win:
Vodafone Idea jumped 13.60 per cent to Rs 10.36 after Vodafone won an arbitration case against the Indian government over retrospective tax demand for around Rs 20,000 crore. The Permanent Court of Arbitration in Hague ruled in favour of Vodafone, and the court ruling held Indian tax department in breach of fair treatment doctrine.

Advanced Enzyme Technologies on an uptrend :
Advanced Enzyme Technologies scaled a new 52-week high of Rs 317.20, after Nalanda India Equity Fund bought 41,90,491 shares of the specialty biotech company on Monday. The stock pared some gains and closed 7.35 per cent higher at Rs 292.85. The stock has been gaining for the last three sessions, and has jumped 31.71 per cent during the period.

Route Mobile holds firm:
The recently-listed Route Mobile continued with its winning run, and rose 3.36 per cent to Rs 938.60. The stock is up 168 per cent from its issue price of Rs 350.

Promoter action: Electrosteel Castings, Mindtree
Promoter and director Mayank Kejriwal acquired 5,40,000 shares of the company on September 23, and raised his stake to 0.38 per cent. The stock rose 3.06 per cent to Rs 93.30.

Promoters continued to trim their stake in Mindtree. Subroto Bagchi and Krishnakumar N collectively sold a total of 89,346 shares of Mindtree on September 23. However, the stock rose 1.43 per cent to Rs 1,267.85.

Stocks at 52-week high:
A total of 94 stocks logged 52-week highs on the BSE. These included Advanced Enzyme Technologies, Apollo Hospitals, Granules India, Coforge and Xelpmoc Design, among others.

Stocks that hit upper circuit:
As many as 351 stocks rose by their upper limit on the BSE. These included VA Tech Wabag, Dish TV India, Adani Green Energy, Future Retail, Dishman Carbogen Amcis and Future Consumer, among others.

Stocks that flash buy:
A total of 32 stocks flashed ‘buy’ signals on BSE, as they crossed above the signal line on the MACD indicator. These included Colgate-Palmolive, KRBL, Balkrishna Industries, Majesco and DCM Shriram Industries, among others.

Where is Nifty headed?
According to Nagaraj Shetti, technical research analyst, HDFC Securities, Friday's sharp upside bounce could be a cheering factor for bulls to make a comeback, but the near-term downtrend status of the market remains intact.

“Any upside bounce up to 11,350-11,400 could be a sell on rise opportunity in the market and the expected decline from the highs could retest the lower 10,800 levels in the near term. Immediate support is placed at 10,900,” said Shetti.