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Traders and investors woke up to a flurry of green ticks on Monday as it became clear that Joe Biden would be the next President of the US. With the uncertainty of the biggest political event of the year over, the bulls pushed their advantage.
The Nifty 50 hit a fresh all-time of about 12,473 and closed Monday’s session at 12,461, about 198 points higher (1.6 per cent gain) over Friday’s close. Similarly, the Sensex marked a fresh lifetime high of 42,644 before closing at 42,597, a gain of 1.7 per cent over Friday’s close.
Big gainers and losers
With the Nifty 50 index at a fresh lifetime high, here are the Nifty 50 stocks that have gained and lost the most since the previous high registered by the index on January 20, 2020. The defensives - pharma and IT stocks – are among the big gainers thanks to heightened investor interest in healthcare and digital themes. On the other hand, energy and banking stocks are among the big losers with investors wary of Covid-led demand destruction and bad loans.
Divi’s Laboratories is the biggest gainer with the stock shooting up nearly 81 per cent, followed by two other pharma stocks Dr Reddy’s Laboratories and Cipla that gained about 60 per cent each since the previous Nifty high. IT stocks Infosys and HCL Technologies were the next big winners, gaining about 48 per cent and 45 per cent respectively.
Among the big losers, ONGC led the pack falling as much as 44 per cent since January 20, 2020. It was followed by IndusInd Bank and Coal India that are down about 42 per cent and 40 per cent respectively.
Not surprisingly, among the sectoral indices, the Nifty Pharma index (up about 41 per cent) and the Nifty IT index (up about 35 per cent) are the largest gainers since January 20, 2020, while the Nifty PSU Bank index is the biggest loser (down about 43 per cent)
Nifty outlook
While the major trend for the Nifty 50 is bullish, it has been largely consolidating between 11,600 and 12,000 since the beginning of October. Last Thursday though, the index broke out of the range and following further gains on Friday, it registered a fresh lifetime high of 12,472.7 on Monday.
The charts look promising. The positive outlook is supported by the relative strength index (RSI) and the moving average convergence divergence (MACD) indicators on the daily chart as they stay in their respective bullish zones. Moreover, the recent breakout has confirmed a bullish flag pattern indicating a potential rally from the current levels. Considering these factors, the Nifty 50 is likely to rally past the 12,500 mark and head to 13,000 in the medium term. Notably, the bullish flag chart pattern indicates a target of 13,200.
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