Market Movers: DMart slips below 200DMA, Infy on a high; 28 stocks turn ‘overbought

NEW DELHI: At the end of a volatile session, domestic blue chip indices got a late hour lift on Thursday, thanks to buying in IT stocks, which positively surprised Dalal Street with June quarter earnings. However, the overall market breadth remained in favour of the losers.

Infosys was the biggest blue chip gainer after its Street-beating Q1 performance, surging nearly 10 per cent. Private banks such as IndusInd Bank, Kotak Mahindra Bank and Axis Bank also logged healthy gains.

But ground realities remain unsettling with the US and China clashing on the global theatre and Covid-19 spreading its arms at even more speed in India.


“Virus infections and geopolitical tensions created uncertainty about global economic recovery. Investors need to remain stock specific and earnings and management commentaries should be watched out for,” said Vinod Nair, Head of Research at Geojit Financial Services.

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

Banking index snaps 4-day losing run
Nifty Bank index broke its four-day losing streak as it climbed over 500 points from the day’s low, closing 1.2 per cent higher. The index was lifted by up to 5 per cent gains in Federal Bank, IndusInd Bank, Kotak Mahindra Bank, IDFC First Bank and RBL Bank.

DMart closes below 200-DMA
Shares of Avenue Supermarts, the flagship firm promoted by Radhakishan Damani, closed below the 200-day moving average for the first time in almost a year. The stock tumbled 6.47 per cent to Rs 2007.80, about 92 points below its 200-DMA level of Rs 2,100.

Media index falls for 3rd day
Nifty Media index, which was the only sectoral index that closed in the red, slid for the third straight session. The index fell 1.65 per cent dragged by up to 10 per cent loss in Mukesh Ambani-owned Hathway Cable and TV18 Broadcast. He said on Wednesday that there are plans to merge them into Network18.

Midcap index snaps losing streak
Despite most of broader market shares closing the day in red, Nifty Midcap index managed to close above the flatline, adding 0.55 per cent to the tally and snapping a four-day losing streak. Meanwhile, Nifty Smallcap fell for the third straight day, down 0.12 per cent. Nifty500, the broadest index on NSE, added 0.88 per cent.

Insider trading: Yug Decor, JSW Energy
A promoter group of JSW Energy revokes pledge on 47.67 lakh shares of the company. But the stock fell 1.02 per cent to Rs 43.55 following the transaction. Meanwhile, Chandresh Santoshkumar Saraswat, a promoter of Yug Decor acquired 4,000 shares from the open market at Rs 20 per share. The stock fell 4.76 per cent to adjust to the price of the transaction.

Stocks that hit lower circuits
Some 361 stocks crashed to the lower daily limits set by BSE on Thursday. They included Tata Consumer, Spandana Spoorthy, Future Retail, Arvind Fashions, Omaxe and Future Consumer, among others.

Stocks that turned ‘overbought’
Thanks to relentless buying in the past few days, 28 stocks listed on BSE turned ‘overbought’ as they crossed above the 70-mark on MACD indicator. They included Jindal Steel and Power, Bajaj Consumer, Birlasoft, SBI Cards, EID Perry, BF Utilities, MAstek, Andhra Sugars, Sangam India and Britannia Industries, among others.

Where is Nifty headed?
Nifty has been sustaining above the lower support of 10,550-10,600 levels in the last three sessions. “Nifty’s short term trend remains positive with rangebound action. On the way up, the 10,830-10,900 zone is going to be a key overhead resistance in the next few sessions. Important supports to watch out for are in the 10,600-10,550 zone,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.