Closing Bell: Nifty ends around 18,150, Sensex crosses 61,000 led by power, metal, pharma

Our market witnessed a gap up opening for the second consecutive day in the week and continued its northward journey. The optimism across the global bourses and the broad-based buying interest has spread buoyancy in our market. The benchmark index Nifty50 surged upwards for the fourth consecutive session to breach the previous swing high and carried its positive stature by procuring over seven-tenth of a percent gain to settle a tad below the 18150 level.

The bulls have taken complete control of the market and are being very rigid in letting any correction to happen, as the intraday dip augurs well for the bulls. The broad-based buying has also bolstered positive sentiments across the participants, which are evident on the technical chart.

As we surpassed the major hurdle of 18000, the market has firmly turned bullish. As far as levels are concerned, the support has been shifted to the 17900-18000 odd zone, which is expected to cushion any short-term blip in the market. While on the contrary, a decisive closure above 18200 could trigger a fresh rally in the index in a comparable period.

Looking at the recent developments, the undertone is likely to remain in favor of the bulls, with significant traction seen outside the indices. Meanwhile, many stock-specific adjustments are likely to continue and are expected to provide substantial trading opportunities. Hence, traders are advised to have a stock-centric approach and stay abreast with global developments ahead of the Fed policy outcome.

Nifty started the day on a positive note however volatility ruled the day ahead of the crucial Central Banks meet which will decidedly affect the stock market trend.

The benchmark indices were seen shifting the range on the higher side as it provided a resonant breakout above the six-month old high of 18114.

Daily price action of higher high formation indicating continuance of positive bias and is likely to challenge the immediate hurdle of 18350 and gradually head towards 18600 in medium term.

The elevated support base for the market is now at 17500 which seems unlikely to breach. Cool off in Dollar index had been providing stability to the rupee against the US dollar, also sliding Oil prices following weak Chinese factory data is likely to support Indian equities going ahead.

The Nifty has seen a gap up opening yet again & has crossed the zone of 18000-18100. It has surpassed the key swing highs formed in April & September this year.

The area of 18000-18100 will now act as a support zone as per the principle of role reversal. Till the time the Nifty stays above these levels, it can stretch to 18300-18400.

On the flip side, if the index enters back into the sub 18000 territory then it will be a sign of exhaustion. Weakness is visible in the Bank Nifty which hasn’t surpassed its respective hurdles & is likely to continue with consolidation in the short term.

The Bank Nifty index witnessed some selling pressure from the higher levels and failed to close above the level of 41,500. The index witnessed aggressive call writing at 41500-42000Ce strike and a breach above this will lead to further short covering on the upside. The undertone remains bullish and once should have a buy approach near the support zone of 41,000-40,800.

After starting higher, the Indian Nifty remained strong throughout the session. On the daily chart, the index has moved above the previous swing high. The daily RSI is in bullish crossover. The trend remains strong as long as it remains above 18000. On the higher end, resistance is visible at 18300.

The bulls are driving the trend in the domestic market with backing from FIIs and the global markets. The PMI numbers show that manufacturing activity in India remained strong in October and that pricing pressures were kept in check as new orders and production increased, albeit slowly.

Investors are keeping an eye on the central banks' policy meetings for any indications of a slowdown in the pace of rate hikes.

Indian rupee ended higher at 82.70 per dollar against previous close of 82.77.

Benchmark indices closed higher for the fourth consecutive session on November 1 with Nifty above 18,100.

At Close, the Sensex was up 374.76 points or 0.62% at 61,121.35, and the Nifty was up 133.20 points or 0.74% at 18,145.40. About 1765 shares have advanced, 1579 shares declined, and 129 shares are unchanged.

Adani Enterprises, Divis Labs, NTPC, Power Grid Corp and Grasim Industries were among the top Nifty gainers, while losers included Axis Bank, UPL, Eicher Motors, Reliance Industries and Maruti Suzuki.

Among sectors, Power, Metal, Pharma and Information Technology indices up 2 percent each, while Realty index up 1 percent.

The BSE midcap index rose 1 percent and smallcap index up 0.26 percent.

The initial public offering (IPO) of DCX Systems, an offset partner in the defence and aerospace space, has got a good response, mopping up bids for 8.1 crore equity shares against an offer size of 1.45 crore shares.

The IPO had been subscribed 5.58 times on November 1, the second day of bidding. Retail investors are aggressively bidding for the IPO and have bought 20.81 times their allotted quota of shares.

Non-institutional investors have subscribed 6.76 times their quota, while qualified institutional buyers have bid for 30 percent of the shares set aside for them.

DCX Systems plans to mobilise Rs 500 crore through the IPO, with a price band of Rs 197-207 a share. The offer comprises a fresh issue of Rs 400 crore and an offer for sale of Rs 100 crore.

Kept overweight call and target raised to Rs 2,305 from Rs 2,178 per share
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Management expects to achieve upper end of guidance
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Larsen & Toubro was quoting at Rs 2,026.85, up Rs 2.90, or 0.14 percent.

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Bharti Airtel touched a 52-week high of Rs 841.30 and was quoting at Rs 835.45, up Rs 3.45, or 0.41 percent.