Benchmark indices opened with gains on Monday morning following strong global cues that helped push Sensex and Nifty higher. S&P BSE Sensex was up over 300 points while the 50-stock Nifty managed to jump over 11,150 mark after the initial hour of trade. Volatility was still seen surging higher as the India VIX gained over 1%. The midcap and small cap indices were again seen getting their momentum back as they surged to outperform the benchmark indices. On Monday morning the major Asian peers were trading in the green, however, Hang Seng and Shanghai Composite were in the red.
Top gainers: ONGC was up over 5% as the top Sensex gainer, followed by Bajaj Finance, NTPC and Axis Bank. On the Midcap index, L&T Finance Holding along with BHEL were trading with gains of over 5% each. Adani Green and Future Retail followed close. Among small cap stocks, IG Petrochemicals Ltd, Shankara Building products were up close to 9% each.
Drags: On opening the IT majors, TCS, Infosys, and HCL Technologies were the top Sensex drags. However, soon Bharti Airtel was the top drag, Infosys still remained in the red. Torrent Pharmaceuticals and GMR Infra were the drags on the BSE Midcap index. Among the Small cap index constituents GMM Pfaudler continued to slip yet again followed by Brightcomm Group and Reliance Power.
Small cap, Midcap indices outperform: The BSE midcap and Small cap indices were trading with gains and yet again outperforming the benchmark indices. BSE Midcap index was 1.63% up while the BSE Smallcap index gained 1.91%. On NSE, the Nifty midcap 50 and Nifty smallcap 50 were both seen surging over 2%.
Volatility still gaining: On opening the India VIX was up over 1.2% to and gained to sit above the 21 levels. Often termed as the fear gauge of the domestic markets, the volatility index later slipped but was still above 20 levels.
Technical take: “The resistance level for the Nifty is at the 11300-11350 zone. Until those levels are crossed on a closing basis, the index continues to remain bearish. The risk reward at this point in time is favourable as traders could strategize short positions for a target of 10750 and a stop loss around the 11350 level,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
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