The benchmark indices the Nifty 50 and the Sensex traded lacklustre until the Budget speech got over. Subsequently, the broader indices congregated buying interest and emerged out of negative territory. The Nifty 50 breached its immediate resistance at 8,600 and managed to close above the 8,700-mark at 8,716 by gaining 115 points or 1.8 per cent in today’s session. Meanwhile, the Sensex breached the key resistance level of 28,000 and has advanced 485.6 points or 1.76 per cent to close at 28,141.6.
Here we discuss technical view on some of the key stock movers on the Budget day. The Finance Minister reported the fiscal deficit target of 3.2 per cent for FY18 and has left the long-term capital gains (LTCG) and the securities transaction tax (STT) unchanged were positives to take but the strong auto sales number for the month of January stole the limelight. The S&P BSE Auto index jumped 753 points or 3.5 per cent to close at 22,563.2, with the stocks such as Maruti, Tata Motors and M&M are the major contributor for the index. Among the 13 stocks in the index
Other auto stocks namely M&M rose 4.6 per cent to ₹1,296.9, Bosch surged 4.6 per cent to ₹23,164.4, Bharat Forge added 4.4 per cent to ₹970 and Eicher Motors advanced 4.2 per cent to ₹24,007.9 were also on highlight.
Eicher Motors broke through a key resistance at ₹23,500, reinforcing the bullish momentum. The stock altered its medium-term downtrend and now it can trend northwards to test resistances at ₹25,000 and then at ₹26,000 in the short term. But a slump below the immediate support at ₹23,500 can bring back selling pressure and pull the stock down to ₹22,300 and then to ₹21,500 levels.
S&P BSE Realty index was also in spotlight by gaining 4.8 per cent to close at 1,435.8, as the government announced infrastructure status to affordable housing. DLF (6.7 per cent), Oberoi Realty (6.4 per cent) and HDIL (5.8 per cent) are the top three major index contributors.
The stock of DLF conclusively breached key resistance (at ₹144) as well as its 200-day moving average by gaining 6.7 per cent. This rally has altered the medium-term downtrend that was in place from late August. Since taking support at ₹105 in late December the stock has been on a budding short-term uptrend. Key resistances are placed at ₹155 and ₹167. Supports to note are pegged at ₹140, ₹130 and ₹117 levels.
Small-cap housing stock Ashiana Housing knocked the upper circuit by skyrocketing 20 per cent accompanied with extraordinary volume to end at ₹172.8. The stock has emphatically broke-out of key resistances at ₹150 and ₹165 on that session. However, it now faces key resistances at 176. Strong breakthrough of this level can push the stock northwards to ₹193 or ₹200 in the short term. Next resistances are at ₹210 and ₹230 levels. Supports are placed at ₹165 and ₹150 levels.
Some of the other small-cap reality stocks that where on highlight are Kolte-Patil Developers gained 12 per cent to ₹105.4, Ansal Housing & Construction jumped almost 10 per cent to close at ₹26.8 and Ganesh Housing Corporation gained 7.8 per cent to ₹82.
Banking and non-banking financial company (NBFC) stocks also stole the limelight on Wednesday as the Bank Nifty climbed 505 points or 2.6 per cent to close at 20,020.6 levels and Nifty Financial Service index jumped 2.7 per cent to end at 8,130. Banking stocks such as Bank of Baroda (4.8 per cent), Federal Bank (4.5 per cent), IndusInd Bank (4.4 per cent) and ICICI Bank (4.4) were the some of the top gainers in the banking space.