Stock Market: Bulls & bears hold ground in tug of war; themes push select scrips high

Spread love

By S Jha

New Delhi, September 26: The last rally which took Nifty to over 20250 level had also come on the back of intense tug of war between the bulls and bears when the index was languishing between 19650 and 19700. There were no clear winners on Tuesday as bulls and bears held their grounds firmly to close the day with decision in favour of either of the party.

Bank Nifty turned once more weak, and the banking index could have fallen more if HDFC Bank had not shown strength from an oversold condition. Bank Nifty was without the support of leadership. Nifty had dived to the level of 19640, but the bulls pulled the index up as FMCG heavyweights made hey in the day. The likes of Nestle and Colgate Palmolive gained firmly on Tuesday.

With crude oil, dollar index, and bond yield staying threats to the bulls on the bourses, the bears are praying for Nifty to go below 19600 level as per chartists to make quick gains on the downside. Also, inflation commentary remains hawkish, and the US Fed may stay on high interest rates path for a long time. This limits the scope for the bull play.

But select scrips are riding the theme play to gain firmly. Cochin Shipyard soared by over 11 per cent. Mazgaon Dock Shipyard and garden Rich Shipbuilders also gained firmly. At the Raisina Hills, time and again it has been stated that the three shipyard companies are seen to be in the game of the partnership with the US Navy for repair and maintenance works, as well as the Indo Pacific strategic play.

Defence sector firms also gaining grounds with the likes of MTAR, Paras Defence, Data Patterns, Zen technology making quick gains. Varun Beverages, the largest maker of the soft drinks, was also buzzing in the day.

Dixon Technology, the Noida-based contract electronic manufacturer, was back in the action, touching the level of Rs 5100 after brokerages have rerated the scrip. Its peers Amber Enterprises and Kaynes Technology are also steadily climbing up.

The IT pack was the most laggard on the bourses on Tuesday. The leading IT firms lost all their grounds which they had covered in the last five days on the back of profit booking. The IT rally, it appears, was largely on account of the heated dollar index.