Market Movers: RIL, HDFC Bank rally, MCX zooms; buy signals in 110 stocks

NEW DELHI: Heavy buying in select blue chips and strong global cues lifted the domestic equity indices on Tuesday, as they recouped the losses of the previous session even as worries over a spike in Covid-19 cases lingered on.

Shares of RIL and HDFC Bank together contributed 580 points to BSE Sensex’s nearly 750-point rally. NSE flagship Nifty advanced over 200 points to close above the 11,100 level.

Shrikant Chouhan of Kotak Securities says RILs stock contributed more than 50 per cent to the overall rise in Nifty and the balance was supported by financial stocks.

"Nifty opened higher on the back of exceptional strength in the US market. The bounce was nothing more than a pullback of the recent decline from the 11,341 level. On Wednesday, the 11,150 and 11,200 levels would be major obstacles. Bank Nifty is making a double bottom on the daily chart and it is a very positive signal for market as long as it is above the 21,000 level. For next two days, the focus should be on the Bank Nifty,” he said.

Here is a lowdown on what happened in Monday's session:
Media index snaps 7-day losing streak
Nifty Media index posted the best day in almost two months and snapped a seven-day losing streak as it advanced 3.89 per cent led by up to 10 per cent jump in TV18 Broadcast, Zee Entertainment, Hathway Cable, Dish TV, Inox Leisure and DB Corps.

RIL gains most in 15 weeks
Reliance Industries was the biggest gainer among blue chip stocks. The stock added 7.10 per cent to close at Rs 2,151, just 48 points shy of its all-time high. Reports suggested that the company was close to buying out the retail business of Future Group.

MCX gains most since March-end
Shares of MCX jumped 8.78 per cent to end at Rs 1,802.40, gaining most since March 27. The stock has been one of the biggest beneficiaries of the recent spike in gold and silver prices and also the Covid lockdown which saw an influx of new investors. The stock has gained 54 per cent year-to-date against a 9 per cent drop in Sensex in the same period.

India VIX drops 6 per cent
India VIX, also known as the fear gauge of the market, slumped 5.98 per cent to 23.67, signalling that traders are expecting relatively lower volatility in the market going ahead.

Insider trading: Mindtree, Trident
Promoters of Trident bought 10 lakh shares of the company that led to 4.24 per cent gain in the shares to Rs 6.89. Meanwhile, promoters of Mindtree dumped 4.75 lakh shares of the company. Following the transactions, shares of the company slid 0.03 per cent to Rs 1,126.40.

Stocks at 52-week highs
Nearly 150 stocks on BSE hit their 520-week high levels. They included Alkem Labs, Cadila Healthcare, Jubilant Life Sciences, L&T Infotech, Mindtree, Tata Consumer and Torrent Pharma, among others.

Stocks that gave ‘buy’ signals
Over 110 stocks on BSE gave buy signals as prices crossed above the signal line of MACD indicator. They included Magma Fincorp, Future Retail, Alok Industries, Motherson Sumi, Mahindra Holidays, Adani Gas, Jyothy Labs and GSFC, among others.

Where is Nifty headed?
Vinod Nair of Geojit Financial Services says the market may look to consolidate from here on. "But as things stand, the current liquidity can ensure that any corrections will get bought into," he said.

S Ranganathan of LKP Securities says RIL led the day's show for the bulls and support emegred in late afternoon trade from key stocks like HDFC Bank and Maruti. "The m-cap-to-GDP ration has now risen to around 78%. A key highlight of Tuesday's trade was the participation of the broader market with smart money finding its way into select midcaps across sectors," says he.