Sensex gains 100 points, Nifty aims 8,050; Lupin surges 5%

Investors have turned cautious ahead of November F&O expiry due tomorrow

Markets have extended gains and are trading near day’s high amid volatility led by buying among capital goods and pharma shares.

By 14:05 PM, the S&P BSE Sensex was up 144 points at 26,105 and the Nifty50 was trading at 44 points lower at 8,045.

Top gainers from the Sensex pack are Lupin, Asian Paints, Tata Steel, L&T and NTPC, all up between 2%-5%.

Lupin gained 4% to Rs 1,470 on the National Stock Exchange (NSE) after the company announced that it received tentative approval for generic Epzicom tablets.

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Updated at 12:53 PM

Benchmark indices are trading marginally higher amid choppy trades aided by capital goods and Tata group shares. Investors have turned cautious ahead of November F&O expiry due tomorrow.

By 12:53 PM, the S&P BSE Sensex was up 49 points at 26,010 and the Nifty50 was trading at 13 points lower at 8,015. Among broader markets, BSE Midcap and Smallcap indices are up nearly 1%.

"A bullish "Harami Cross" is formed in a downward move with previous candle being a long red candle while next candle is a gap up with small body in lower part of previous candle. This indicates exhaustion of current move (bears) and bulls may take opportunity to buy at lower levels. As per OI data, we have expiry in coming days and a close above 8K confirms a relief rally which may be due to short covering and bottom fishing as well as it is the 50% retracement of previous rally of 6826 - 8969," said Mustafa Nadeem, CEO, Epic Research.

Among overseas markets, Asian stocks extended previous session's gains as investors tried to share in the exuberance of Wall Street's record run. Japanese stock markets were closed for a holiday. US stocks closed at record highs for a second straight session yesterday, 22 November 2016.

The Dow Jones Industrials Average and S&P 500 cleared psychological milestones but major indexes simultaneously reached record highs for a second straight day with Dow closing above the 19,000 level for the first time.

Back home, Asian Paints, L&T, Tata Steel, Sun Pharma, Lupin and Tata Motors have gained between 2%-3%. On the losing side, HDFC, Power Grid, Wipro, Maruti Suzuki and M&M are down 1%-2%.

“PSU banks may do well while private banks are still having bearish chart structure. Tata Stocks shall be avoided as it is a news based movement in these scripts. Fresh buying will be seen in pharma while IT stocks present a good opportunity due to attractive valuations at current levels both technically and fundamentally,” adds Mustafa Nadeem.

Larsen & Toubro (L&T) is up 3% after the company reported 84% year on year (YoY) growth in consolidated net profit at Rs 1,435 crore for the quarter ended September 30, 2016 (Q2FY17).

Sun Pharmaceutical Industries rises 2% after the company said it entered into an agreement to acquire 85.1% stake in a Russian pharmaceutical company JSC Biosintez for a total consideration of $60 million.

Among other shares, Adani Transmission has moved higher to its record high of Rs 52.80, up 13% on BSE in intra-day trade on back of heavy volumes.

Wockhardt hit a fresh 52-week low of Rs 659, down 4.5% on BSE in early morning trade after the company’s UK arm, CP Pharmaceuticals, received a warning letter from the US drug regulator.