孕みHarami is a type of Japanese candlestick pattern represented by two bodies, the first of them, larger, with black or red body and the second one, white or green. Its name derives from the Japanese word that means “pregnant” because the graphic that shows resembles a pregnant woman.
NEW DELHI: Notwithstanding weakness in the global markets and rising crude oil prices, the domestic stock market extended gains for a second session on Friday with Sensex and Nifty rising over a per cent ahead of the exit poll results on Sunday.
The last phase of the seven-stage Lok Sabha elections will wrap up this weekend with exit polls starting to come out on Sunday evening.
Heavy buying was seen in private bank, financial, auto and realty stocks. While there was mild in IT, pharma and PSU bank stocks. From the Sensex pack, Bajaj Finance, Hero MotoCorp, HUL stood as the top gainers. Vedanta, Sun Pharma and Infosys were the top losers. The volatility index or India VIX surged over 2 per cent to top the 29 level.
Here are top factors that boosted Dalal Street on Friday:
Election-related trades
Traders might have taken election-related bets ahead of the seventh-phase polling. Indian voters are eagerly awaiting exit polls.According to Milan Vaishnav, Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, traders were expected to adjust their positions on Friday prior to general election results.
Analysts though warned investors to take exit polls results with a pinch of salt.
“Exit polls have not been accurate for the last three national elections. In 2004, exit polls wrongly forecasted BJP-led NDA coalition winning again, while in 2009, they meaningfully underestimated the margin of victory,” UBS said.
Private lenders, FMCG stocks lift indices
A major part of Friday’s rally was led by banking and financials and FMCG stocks. Data suggests the HDFC twins alone contributed 140 points to Sensex’s rise. ICICI Bank, Kotak Mahindra Bank and Bajaj Finance contributed another 120 points. FMCG stocks ITC and Hindustan Unilever also contributed 85 points to the index gains. Overall, 21 of out of 30 Sensex stocks were ruling higher.
Technical factor
During the session, NSE Nifty broke out from an inverted Head & Shoulders pattern, whose neckline was placed at the 11,260 level. A sustained trade beyond this resistance line was expected to take the index towards of 11,300-11,370 range.
The index on Thursday made Harami pattern on the daily chart. Some experts were of the view that breaching the 11,300 level would trigger a rally.
“Nifty formed a Harami pattern and a narrow-range three bar formation on the daily scale, indicating that a small follow up could lead to a short-term bottom process ahead of the election outcome,” Chandan Taparia of Motilal Oswal Securities said on Thursday.
Quarterly numbers shine
Four Nifty companies posted their March quarter numbers today. Out of them, three posted stellar gains, thus infusing a sense of optimism in Indian equities. While Bajaj Auto posted a 21 per cent rise in profits, DRL's net jumped some 44 per cent. Bajaj Auto stock even spiked following the results and was among the best performers in the Sensex pack.
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