Such a pattern was formed due to a gap-up opening with a long lower shadow. The opening upside gap remains unfilled, indicating the continuation of an upside bounce in the market amidst a range-bound movement, analysts said.
Among stock specific actions, contract manufacturer Amber Enterprises logged a new high, continuing with the gains as India banned import of finished air conditioners last week, while Jet Airways jumped 5 per cent after the Committee of Creditors approved a resolution plan.
The optimism in the market is here to stay, said analysts.
“So far the earnings have come in line with the expectation which supported a broad based momentum in the market while Bank Nifty outperformed on account of better than expected results,” said Vinod Nair, head of research at Geojit Financial Services.
“The continuation of this trend along with fiscal measures from the government will enthuse the prospects of H2FY21 economic recovery,” he added.
Here is a lowdown on what happened in Monday’s trade:
Private lenders rally
Private lenders ICICI Bank and Axis Bank rallied 5.33 per cent and 4.43 per cent on hopes of better earnings after peer HDFC Bank’s earnings beat Street view.
Top private lender HDFC Bank rose 0.36 per cent to 1,203.35, after it reported a 18.4 per cent year-on-year rise in standalone net profit at Rs 7,513.10 crore for the September quarter.
Amber Enterprises at new high
Amber Enterprises shares surged another 12.81 per cent to Rs 2,459.35 after the Directorate General of Foreign Trade (DGFT) banned the import of finished air conditioners last week, a move that will provide a big boost to domestic production, and benefit the contract manufacturer that serves 9 out of 10 AC brands in India.
The stock logged a new all-time high of Rs 2,544.94 earlier in the day, and has advanced 24.25 per cent over the last three sessions.
Jet Airways hits upper circuit
Jet Airways (India) rose by its daily limit of 4.98 per cent to Rs 42.15 after the airlines’ committee of creditors (CoC) on Saturday approved the resolution plan submitted by the consortium of UK’s Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan under the insolvency resolution process.
Promoter action: Adani Group
Promoter group Gautam S. Adani and Rajesh S. Adani (on behalf of S.B. Adani Family Trust) pledged 46,90,000 shares and 10,23,000 shares of Adani Enterprises and Adani Green Energy, respectively, on October 16.
Shares of Adani Enterprises, however, rose 3.24 per cent to Rs 316.90, while those of Adani Green Energy shed 0.30 per cent to Rs 702.80.
Stocks at 52-week high
As many as 104 stocks scaled their 52-week highs on the BSE. These included Amber Enterprises, JSW Steel, Subex, 8k Miles Software, JK Cement and Jindal Stainless, among others.
Stocks that hit upper circuit
A total of 235 stocks rose by their daily limit on the BSE. These included Indiabulls Integrated Services, Dewan Housing Finance Ltd (DHFL), Central Bank of India, Tata Communications and 8k Miles Software, among others.
Stocks that turned overbought
On the back of continuous buying, as many as 19 stocks turned ‘overbought’ as they crossed above the 70-mark on the RSI indicator. These included HDFC, JSW Steel, Amber Enterprises, Sintex Industries, Gujarat Pipavav Port, among others.
Where is Nifty headed?
According to Nagaraj Shetti, Technical Research Analyst, HDFC Securities, the short-term trend of Nifty continues to be positive. “There is a possibility of further 1-2 days of upmove before showing minor downward correction from the highs,” said Shetti.
“The upper 11,950-12,000 is going to be an overhead resistance for the short term. Immediate support is placed at 11,780,” he added.