After Market: IT plays to gallery, 128 stocks show a bearish trend

NEW DELHI: Domestic stock benchmarks ended on a bright note on Wednesday ahead of the F&O expiry, taking comfort from optimism that the US and China may smoke peace pipe at the G-20 meet later this week.

With today's rally that came in line with most Asian peers, the Sensex and the Nifty extended their winning run to the third straight session, driven by buying in IT and bank heavyweights.

However, the market breadth flipped into negative as 1,604 stocks declined on the BSE as against 1,002 that rose.

The Sensex settled up 204 points, or 0.57 per cent, at 35,716.95, with 12 stocks in the green and 19 in the red. The Nifty climbed 43 points, or 0.40 per cent, to close the day at 10,728.85, with 19 gainers and 31 losers.

Let's run you through the high points of Wednesday's session:

Who scripted the Sensex rally?
IT stocks Infosys and Tata Consultancy Services (TCS) contributed the most to the rise in the Sensex, followed by Reliance Industries, HDFC twins and ICICI Bank. In terms of percentage gains, TCS, with a gain of 4.67 per cent, emerged as the leader of the pack. It was followed by Infosys (up 4.61 per cent), IndusInd Bank (1.96 per cent), Reliance Industries (1.66 per cent) and ICICI Bank (1.33 per cent).

Rs 1.15 lakh crore created in 3 days
The 3-day rally in the market made BSE investors richer by Rs 1.15 lakh crore cumulatively as the total market capitalisation of firms listed on BSE went up to Rs 1,41,61,474.16 crore from Rs 1,40,45,908.35 crore on November 22.

YES Bank cracks 12%
Shares of YES Bank cracked 11.71 per cent to settle at Rs 161.70 on the BSE. This was the fourth consecutive session of loss for the scrip. In the last four sessions, shares of the company have lost 18.33 per cent. Moodys Investors Service has downgraded YES Bank's foreign currency borrowings (FCBs) by two notches to non-investment grade on the back of a series of resignations from the board.

Jet Airways jumps 5%
Shares of Jet Airways (India) settled 5.20 per cent higher at Rs 308.80 on the BSE after reports of founder Naresh Goyal's likely exit. Media reports suggested that Naresh Goyal agreed to sell his controlling stake and give up operational control of the struggling carrier.

IT index top sectoral gainer
The BSE IT index jumped 3.58 per cent, buoyed by gains in index heavyweights, including Infosys, TCS, HCL Tech, Mindtree, Mphasis and Tech Mahindra. A majority of IT stocks clocked gains even as the rupee edged up against the dollar. Out of total 58 components of the index, 30 closed with gains, 25 with losses and three settled unchanged.

Airtel, Voda Idea plunge on Trai query
Shares of Bharti Airtel and Vodafone Idea fell 3.81 per cent and 2.32 per cent, respectively, after media reports suggested that the Telecom Regulatory Authority of India (Trai) asked them to explain their minimum recharge plans after subscribers complained they got messages to recharge their accounts despite having sufficient balance.

Midcaps, smallcaps underperform Sensex
Midcaps and smallcaps failed to pull through as the BSE Midcap fell 0.50 per cent and the BSE Smallcap closed 0.48 per cent lower today.

Spurt in open interest (OI)
Bharti Infratel, with 71.15 per cent change in open interest, came out on the top among those that witnessed biggest spurt in OI on the NSE. It was followed by Ambuja Cements (70.21 per cent), UBL (65.38 per cent), Britannia (59.59 per cent) and Bharat Financial Inclusion (57.67 per cent).

128 stocks flash bearish signal
Momentum indicator moving average convergence divergence, or MACD, showed bearish crossovers on 130 counters on the BSE. Among the stocks that showed negative crossovers were State Bank of India, Arvind, Punjab National Bank, PTC India, Mahindra & Mahindra, Syndicate Bank and Cadila Healthcare. However, 42 stocks, including Infosys, BHEL, Mirc Electronics, Optiemus Infracom, JBM Auto and Amrutanjan Health Care showed bullished crossovers on the BSE, as per the MACD.

Nifty forms 'Spinning Top'
The Nifty index formed a Shooting Star candle on the daily chart, suggesting selling pressure at higher level. The NSE barometer could not close above its 200-day moving average despite breaching it intraday. The index is expected to see resistance in 10,740-10,775 range while a drop below 10,695 level may trigger selloff.

Call/put writing
"On the options front, maximum Put open interest (OI) was at 10,500 followed by 10,600 strike, while maximum Call OI was seen at 10,800 followed by 11,000 strike. Meaningful Put writing was at 10,700 followed by 10,650 strike, whereas Call writing was at 10,800 followed by 10,850 strike. Option band signifies a trading range between 10,650 and 10,800 levels," said Chandan Taparia of Motilal Oswal Securities.

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