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    Market Movers: RIL at record highs ahead of AGM, TCS gains; 94 stocks give sell signals

    Synopsis

    As earnings season kicks, the outlook for the market is volatile.

    market moversShutterstock.com
    Despite closing in the red on Friday, the 12-share Nifty Bank pack rose for the fourth consecutive week.
    NEW DELHI: In a see-saw trade, the domestic equity indices closed in the red following in the footsteps of their Asian peers as fast rising Covid-19 cases in multiple parts of the world threatened the economic outlook.

    Losses in the blue chip indices were capped to an extent by gains in RIL shares. Despite its record-breaking run, BSE Sensex dropped 140-odd points while its NSE peer Nifty fell 45 points. Pharma names saw some buying and banks were among the biggest losers.

    “The outlook for the market is volatile, as earnings season kicks in for what is likely to be a washout quarter for most industries. This uncertainty has triggered profit booking after the recent rally, which will now result in higher volatility going ahead,” said Vinod Nair, Head of Research at Geojit Financial Services.

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

    Nifty Bank gains for 4th week
    Despite closing in the red on Friday, the 12-share Nifty Bank pack rose for the fourth consecutive week, marking the longest winning streak since December, 2019. The index saw some profit booking on Friday and closed 2.22 per cent lower. All constituent stocks closed the day in the red, led by PNB which fell over 5 per cent after the company classified its DHFL exposure as fraud.

    VIX declines for 4th week
    Moving opposite the benchmark indices, volatility index India VIX dropped for the fourth straight week, falling 3.7 per cent for the week and 0.38 per cent on Friday to close at 24.81. This means traders expect relatively lower volatility in the next few sessions.

    RIL stock at record high
    Reliance Industries continued its spectacular run and jumped 2.95 per cent to Rs 1,878.50, bringing its market capitalisation to a record high of Rs 11.90 lakh crore. The company’s AGM is scheduled for July 15 and many on Dalal Street are expecting some major announcements from Mukesh Ambani.

    Q1 earnings impact: TCS
    Riding on the positive management commentary, investors shrugged off a 14 per cent decline in net profit as shares of TCS gained 0.78 per cent to Rs 2,221.65. The stock gained about 2 per cent from its day’s low.

    Insider trading: Aurobindo Pharma
    RPR Sons Advisors Private and P Suneela Rani, promoters of Aurobindo Pharma, pledged 28.60 lakh shares valued at Rs 222.59 crore. Shares of the company, however, closed up 0.97 per cent at Rs 820.50.

    Stocks @52-week highs
    Over 110 stocks hit the 52-week high level on Friday. They included Alkyl Amines, Aurobindo Pharma, Biocon, Britannia Industries, Escorts, Granules India, Laurus Labs, L&T Infotech, PI Industries, RIL and Tata Consumer, among others.

    Stocks that flashed ‘sell’
    Prices of 94 stocks on BSE crossed below the signal line of MACD indicator, giving sell signals. They included IDFC First Bank, IDBI Bank, LIC Housing Finance, Rail Vikas Nigam, ICICI Pru Life, Apollo Tyres, Bharat Forge, Titan and Tata Coffee, among others.

    Where is Nifty headed?
    At the end of the day, Nifty formed a Doji candle on the daily chart. A Doji pattern, when formed after an Inside Bar pattern, suggests the rally has lost steam on the upside, said a technical analyst. “The index seems to be in the process of forming a distribution below its 200-DMA. Going ahead, the 10,676 and 10,850 levels will continue to act as key support and resistance, respectively. The lower boundary, which is the swing low of 10,676, is a critical level to keep a tab on,” said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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