Sensex rallies over 200 points; Nifty50 back above 8,200; DLF surges 6%

NEW DELHI: The S&P BSE Sensex rallied over 200 points in morning trade on Wednesday led by gains in ITC, HDFC, HUL, Lupin, and L&T.

The Nifty50 reclaimed its crucial level of 8,200 levels supported by gains in realty, metal, capital goods, auto, and capital goods stocks.

Crude prices surged over 3 per cent on Norwegian supply worries, while most Asian markets were trading positive at the time of writing of this report.

The broader market traded with heavy gains with the BSE Midcap and Smallcap indices climbing 0.54 and 0.66 per cent, respectively.

Market @ 9:20

The 30-share index was trading at 26656, up 131 points or 0.50 per cent. It touched a high of 26,673.88 and a low of 26,620.64 in morning trade.

The Nifty50 was trading at 8167 up 40 points or 0.49 per cent. It touched a high of 8,176.55 and a low of 8164.10 in the first 30 minutes of trade.

The S&P BSE Midcap Index was up 0.60 per cent and BSE S&P Smallcap Index was trading 0.73 per cent higher.

Tata Motors (up 1.8 per cent), Dr Reddy’s Laboratories (up 1.1 per cent), L&T (up 1.04 per cent), ICICI Bank (up 1 per cent), Hero MotoCorp (up 0.87 per cent) were the major Sensex gainers.Sensex gainers.

HDFC Bank (down 0.3 per cent), GAIL (down 0.11 per cent), and CIL (down 0.06 per cent) were the major index losers.
Four things you must know about today's market:

Marketwide F&O rollovers at 45 per cent: The marketwide rollovers to July F&O series stood at 45 per cent on D2, which was in line with the average rollovers seen in the past three series

Nifty rollovers gained momentum, noted Edelweiss Securities, with nearly 46 per cent positions getting rolled over compared with an average of 45 per cent seen in the last three series.

“There was a pickup in rollover activity on cement (44 per cent vs 20 per cent) and FMCG (41 per cent vs 25 per cent) counters on D2. Specific counters where rolls picked up include Adani Ports & SEZ (54 per cent vs 19 per cent), HCL Tech (49 per cent vs 22 per cent) and Hindustan Petroleum (43 per cent vs 20 per cent),” the brokerage said.

Weakness on technical charts: Experts believe if there is weakness on Nifty50 in the initial hours of trade on Wednesday, it could trigger a downtrend.

“If there is a weakness in the first few hours, then a downward move can be seen. Short-term support levels for the index come at 8,090 and 8,040. A fall below these levels could drag the Nifty50 to 7,940. On the higher side, we may find critical resistances at 8,190 and 8,225 levels,” said Mustafa Nadeem, CEO, Epic Research.

Technically, the market is in a no-trade zone with no clear cue on either direction, said Nikhil Kamath, Co-Founder & Director, Zerodha.

“The candle charts also point to a no-trade zone. The activity at this time will be more skewed towards F&O expiry and the derivative action it brings with it. We are seeing considerable put buildup at the 8,000 level. Also, considerable short buildup in the June series could lead to a short-covering rally closer to expiry. We would recommend staying in cash at this juncture. We would not advise initiating new positions on either direction at this time,” Kamath said.

Asian markets stay higher: Most Asian markets were trading xxx this morning.

Japan’s benchmark Nikkei was trading 1.22 per cent higher at 15510.71. China’s Shanghai Composite advanced 0.46 per cent to 2,926.12. Other Asian indices, including South Korea’s Kospi (up 1.21 per cent) and Taiwan’s TWSE (up 0.74 per cent) were trading higher.

US stocks surged on Tuesday: US stocks staged a smart rebound on Tuesday after seeing their worst two-day drop in about 10 months. The Dow Jones Industrial Average gained 269.48 points, or 1.57per cent, to close at 17,409.72. The S&P500 index advanced 35.55 points, or 1.78 per cent, to 2,036.09. The Nasdaq Composite rose 97.42 points, or 2.12 per cent, to 4,691.87.

The US commerce department revised upward US GDP growth print to 1.1 per cent in its third GDP estimate for the first quarter from 0.8 per cent reported last month. The economy grew at 1.4 per cent in the fourth quarter.