Benchmark indices logged healthy gains on October 11 on the back of positive global sentiment as optimism for a US-China trade truce grew stronger while investors also cheered Brexit-related developments.
After opening higher, equity benchmarks experienced bouts of volatility in the first half of the session. However, barring a monetary blip, the market remained in the green for the day, supported by gains in select heavyweights such as Infosys, HDFC and Hindustan Unilever.
"Despite weakness in the first half, we saw smart recovery in the market towards the end, which implies that the market is about to resume uptrend. The strategy should be to stay away from catching a falling knife. Nifty is likely to face hurdles at 11,450 and 11,550 in the near-term," said Shrikant Chouhan, Senior Vice-President - Equity Technical Research at Kotak Securities.
The 30-share Sensex closed 247 points, or 0.65 percent higher at 38,127.08, with 20 stocks in the green.
Infosys, Vedanta and Tata Motors emerged as the top gainers while Yes Bank, Mahindra & Mahindra and Tata Consultancy Services ended as the top laggards.
The Nifty pack closed with a gain of 71 points, or 0.63 percent, at 11,305.05. Overall, 35 stocks logged gains in the index and 15 settled with losses.
The secondary indices underperformed the benchmark. BSE Midcap and Smallcap indices ended 0.24 percent and 0.38 percent up, respectively.
Barring BSE Energy (down 0.41 percent), oil & gas (down 0.41 percent) and Utilities (down 0.08 percent), all sectoral indices gained, with Metal rising 2.44 percent.
Nifty Bank settled at 28,036.35, marginally up by 0.08 percent, today. For the week, Sensex, Nifty and Nifty Bank gained 1 percent each.
Top news updates of the day:
The Nobel Peace Prize for 2019 was awarded to Ethiopian Prime Minister Abiy Ahmed for his efforts to achieve peace and international cooperation, and in particular for his decisive initiative to resolve the border conflict with neighbouring Eritrea.
The Centre may introduce the Personal Data Protection Bill, 2018 in the coming winter session, PTI reported, quoting a senior official of the Ministry of Electronics and Information Technology.
Oil prices surged more than two percent on Friday after an Iranian tanker was hit by suspected missile strikes in Saudi Arabia, sparking fresh supply concerns in the already-tense Gulf region.
Chinese President Xi Jinping has arrived for a two-day informal summit with Prime Minister Narendra Modi in the coastal town of Mahabalipuram in Tamil Nadu. During the summit, the two leaders are expected to attempt a strategic re-balancing in bilateral ties, strained by a hardline approach on the Kashmir issue from both sides.
Stocks in news:
Shares of Infosys rallied 4.19 percent to Rs 815.70 on BSE on October 11 ahead of its September quarter earnings. Post-market hours, the company's numbers came in line with Street expectations.
Shares of Cipla settled 4.57 percent higher at Rs 441.55 after management clarified on Goa unit inspection, saying there are no data integrity and repeat observations.
Shares of Indiabulls Real Estate ended locked in 5 percent upper circuit at Rs 43.40 after its board approved a Rs 500-crore share buyback proposal.
Shares of IndusInd Bank slipped 0.46 percent to Rs 1,223.25 as most brokerages cut their target price on the stock after the company reported a 3.4 percent sequential decline in the September quarter profit.
Shares of Tata Consultancy Services (TCS) fell 0.87 percent to Rs 1,987.05, a day after the IT heavyweight released a softer set of numbers for the July-September quarter of the financial year 2020, missing Street Estimates.
Global update:
European stocks rose for the third straight day on Friday on optimism around US-China trade talks and London’s latest Brexit moves, reported Reuters.
China's Shanghai Composite Index climbed 0.88 percent, while Korea's Kospi gained 0.81 percent. Japan's Nikkei rose 1.15 percent.
Technicals:
Nifty formed a hammer candle pattern on the weekly chart which is a bullish reversal candle by nature. The index managed to close within its rising channel pattern on the weekly chart.
"Immediate hurdle for Nifty is coming near 11,350-11,400 and support for the index is coming near 11,220-11,080. Any decisive break above 11,400 can result in a quick move towards 11,500-11,600," said Rohit Singre, Senior Technical Analyst, LKP Securities.
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