Indian market continued its winning streak in the third consecutive week ended November 4 supported by strong FII flow, better earnings, strong GST collection and better manufacturing data.
For the week, BSE Sensex added 990.51 points or 1.65 percent to end at 60,950.36, while the Nifty50 gained 330.35 points or 1.86 percent to close at 18,117.15 levels.
All the sectoral indices ended in the green with Nifty Metal index gaining 7.5 percent and Nifty Pharma, PSU Bank and Oil & Gas indices rising nearly 3 percent each.
For this week, BSE Smallcap index rose 1.4 percent, Midcap index up 2.4 percent and Largecap index added 2.4 percent.
“Global markets were buoyed at the onset of the week as markets across the globe were expecting central banks to dial down big interest rate hikes. Contrary to expectations, the Fed and Bank of England (BoE) refused to tone down the rate hike narrative, shattering the global markets. Powell cautions that the desired Fed rate level is higher than previously expected, even though he indicated a rate hike of less than 75 basis points in the upcoming meetings,” said Vinod Nair, Head of Research at Geojit Financial services.
“The BoE concurred with the Fed’s view and added that a protracted recession is anticipated. The hawkish commentary drove the dollar to soar along with US Treasury yields. However, FIIs' ongoing interest in the market and strong earnings kept the domestic market losses in check.
“Domestic PMI numbers also worked in favour of Indian equities as manufacturing and service activity remained healthy in October. With mounting concerns about a global recession and the anticipation of muted Q2 results from Tier 2 and 3 companies, markets are likely to be volatile in the upcoming week,” he added.
During the week, foreign institutional investors (FIIs) bought equities worth of Rs 10,338.72 crore, while domestic institutional investors (DIIs) sold equities worth of Rs 4,496.06 crore.
The BSE Small-cap index added 1.4 percent with Karnataka Bank, Kabra Extrusion Technik, Lancer Containers Lines, PDS, Reliance Communications, Mazagon Dock Shipbuilders and Siyaram Silk Mills rising 20-45 percent.
On the other hand, Mangalore Chemicals, Cressanda Solution, Intellect Design Arena, WPIL, Sportking India, Apex Frozen Foods, Vishnu Chemicals, TGV Sraac, Transport Corporation of India, Aurionpro Solutions, Fineotex Chemical, and KSB lost 10-28 percent.
The BSE 500 index was up 2 percent led by the Mazagon Dock Shipbuilders, Alembic Pharma, Redington, Indian Overseas Bank, Adani Enterprises, UCO Bank, Bank Of India, JK Lakshmi Cement, Dalmia Bharat, Punjab & Sind Bank, Rajesh Exports, and Rail Vikas Nigam.
"The Indian indices throughout the week witnessed a volatile trading session where both the bulls and the bears were active with full force. The indices witness flat closing on a weekly perspective with sector and stock-specific moves. Major buying action was seen in sectors such as infra, metals and railway stock, PSU bank. The Nifty metal index was the top-performing sector with 7.5% gains followed by the PSU Bank index which was up by 2.9%," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Where is Nifty50 headed?
Apurva Sheth, Head of Market Perspectives, Samco Securities.
Nifty continues to trade in green and managed to close above 18100 levels on the weekly time frame with a gain of 1.86 percent. On the daily chart it has maintained its cycle of higher highs – higher lows, construing to have a bullish setup.
On a technical aspect, the index is firmly placed above all the major exponential moving averages. We have seen some tentativeness at higher levels, but we do not construe this as any sign of worry. Traders are just opting to take some money off the table after seeing a decent upside move in the previous couple of weeks.
As far as levels are concerned, 17750-17700 is likely to cushion any fall on an immediate basis, whereas on the flipside, a decisive breach over the immediate resistance of 18200 could trigger a strong rally towards 18400 and beyond.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty continues to hover around 18000-18100 for yet another session. The bulls managed to defend the level of 18000 for the second consecutive session. On the higher side, 18200 is a key barrier for the short term. Unless that gets taken out, the index is likely to have a short term consolidation.
On the downside, breach of the level of 18000 will turn the structure in favour of the bears. In that case, the Nifty can test 17800 on the downside. Overall, 17800-18200 will be the short term consolidation range.
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