Mid-day Mood | Nifty nudges near day’s high, powered by banks; midcaps upbeat

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The benchmark indices have staged a smart recovery from the day’s low on August 22, with Nifty50 index making a strong effort to hold above the 19,400 level. At 12:30 pm, the major indices were trading near the high of the day.

About 1,968 shares advanced, 1,054 shares declined, and 121 shares traded unchanged till noon.

The Nifty Midcap index maintained its dream run and crossed the 38,700 mark for the first time. The Nifty Midcap 100 has now gained over 32 percent from its March lows.

“Lot of institutional and retail money is chasing mid and small caps. But valuations of these segments are becoming a bit concerning. Investors have to be careful while chasing low-priced stocks in the broader market,” Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Also Read: Do midcaps deserve to trade at higher valuations than largecaps?

In the midcap space, CG Consumer and GMR Airports were among the top gainers, up over 4 percent and 3 percent, respectively.

Crompton Greaves Consumer Electricals extended gains for the third session after recent investor meetings and the announcement of Crompton 2.0 strategy has led to positive ratings from brokerage houses. CLSA has upgraded the stock to a ‘buy’ with a target price of Rs 365.

GMR Airports sees an increased investor interest following a sharp rise in passenger traffic. India’s domestic air passenger traffic volume surged 25 percent on-year to 1.21 crore in July, according to DGCA data.

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In the largecap space, Hindalco gained over 2.5 percent after Kumar Mangalam Birla announced that the company will be investing up to Rs 2,000 crore to set up a copper and e-waste recycling unit in India.

Along with Hindalco, gains in APL Apollo, NMDC, Nalco and Hindustan Copper helped Nifty Metal gain around 1 percent.

Nifty PSU Bank also gained over 1 percent with UCO Bank and Punjab & Sind Bank rising over 5 percent each. Investors bought on dips as the index had dragged over the last two trading sessions.

The Nifty 50 has now been consolidating the 19,300-19,500 range since the last six trading sessions. “The Nifty has formed a doji pattern on the daily chart twice in last three trading sessions, which signals indecision in the market. A strong close above 19,500 can quickly take the Nifty until 19,650 levels, while a break below 19,300 can intensify the selling pressure and drag it to the 19,000 levels,” Ashwin Ramani, Derivatives and Technical Analyst at SAMCO Securities, said.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​​

 

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