Taking Stock: Market snaps two-day fall; Nifty above 25,300 at a month-high, Sensex up 575 points
Benchmark indices snapped a two-day losing streak to end at one-month high as bulls returned on October 15 to help Nifty 50 close above 25,300 amid broad-based buying.
At close, the Sensex was up 575.45 points or 0.70 percent at 82,605.43, and the Nifty was up 178.05 points or 0.71 percent at 25,323.55. BSE midcap index added one percent and smallcap index jumped 0.7 percent.
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The biggest Nifty gainers were Bajaj Finserv, Bajaj Finance, Trent, Nestle India, Asian Paints, while losers were Infosys, Tata Motors, Bajaj Auto, Tech Mahindra, Axis Bank.
All the sectoral indices ended in the green with realty index up 3 percent, while power, consumer durables, PSU Bank, metal and telecom indices up 1-2 percent.
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In stock-specific action, Persistent Systems shares added 7 percent on higher Q2 profit, Keystone Realtors shares fell 8 percent on promoter stake sale, Cyient DLM shares slippped 5 percent on lower Q2 revenue, ICICI Lombard shares rose 8 percent on Q2 profit, Godrej Properties shares rose 3.5 percent on acquiring land parcel near Bengaluru, and Welspun Enterprises shares rose 6 percent on raising Rs 1,000 crore via warrants.
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More than 150 stocks touched their 52-week high on the BSE, including Bank of Maharashtra, Bajaj Finance, Tata Communications, L&T Finance, Cholamandalam Investment, Canara Bank, RBL Bank, Eternal, MCX India, among others. Click to View More
Outlook for October 16
Ajit Mishra – SVP, Research, Religare Broking
Markets rebounded sharply on Wednesday, gaining over half a percent and extending the prevailing positive momentum. After a firm start, the Nifty continued to move higher through most of the session, though mild profit-taking in the final hour trimmed some gains. Eventually, it closed at 25,323.55, up 0.71%. Sector-wise, most indices ended in the green, with realty, financials, and metals leading the advance. The broader market also remained constructive, as both midcap and smallcap indices posted healthy gains, supported by strong market breadth.
The up move was driven by some easing in US-China trade tussle and a rebound in the rupee from recent lows. Additionally, a stable start to the earnings season and rating agencies reaffirming their positive outlook on India helped counter lingering worries around global growth and trade tensions.
Technically, the Nifty looks poised to retest the trendline hurdle near 25,450, and a decisive breakout above this level could propel the index toward 25,650 and beyond. We maintain a bullish bias and continue to advocate a “buy on dips” approach as long as the index holds above the 25,000 support zone. Sector rotation currently favors banking, metals, and auto, while defensives like FMCG and pharma may continue to underperform in the near term, so participants should align their positions accordingly.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
After showing sharp weakness on Tuesday, Nifty witnessed sharp bounced back on Wednesday and closed the day higher by 178 points. After opening on a positive note, the market witnessed a sustainable upmove for better part of the session. Intraday dips have been utilized to move higher and Nifty finally closed near the highs.
A long bull candle was formed on the daily chart, that indicates counter attack of bulls after one session of weakness on Tuesday. Nifty is currently placed at the edge of breakout of cluster resistance like down sloping trend line, previous swing high and upper range of last few sessions around 25400-25500 levels.
The underlying trend of Nifty is positive. A decisive breakout of key resistance at 25500 is likely to open more upside towards 25700-25800 in the near term. Immediate support is placed at 25200.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.