Closing Bell: Sensex, Nifty end at fresh record highs led by auto, financials

Taking Stock | Rally on the Street continues with Nifty above 12,900; auto, financials zoom

Broader markets outperformed the main indices with the BSE midcap jumping 1.2 percent, while smallcap index adding 0.90 percent.... Read More

Markets managed to inch higher amid volatility, in continuation of the prevailing uptrend. The benchmark opened marginally lower on the back of unsupportive global cues as news of rising coronavirus cases impacted sentiments. The mood remained somber in the first half but the tone turned bullish in the second half led by healthy buying in select heavyweights. Consequently, the Nifty ended with gains of 0.5% at 12,938 levels. The broader markets outperformed and ended higher in the range of 0.9-1.2%. Amongst the sectors, banks, auto and capital goods showed a noticeable surge while defence such as FMCG, healthcare and IT were laggards.

Markets have been maintaining the momentum despite overbought conditions and it’s largely due to noticeable buying by foreign investors. We reiterate our positive yet cautious approach to the index and suggest focusing on broader markets for trading opportunities. Needless to say, traders should avoid contrarian trades and maintain a “buy on dips” approach.

The markets opened with a flat note and after a knee jark movement down continued to trade in the green rest of the day. We view 12930-12950 as a potential supply zone and the market is currently trading near to it. While technical evidence from momentum indicators like RSI, MACD is not supporting the rally and cyclically market is about to enter into a corrective phase, the investor should use the rally to scale down their position gradually. On the downside 12770-12790 is likely to act as a support zone.

The index was subdued for most of the day but moved up smartly in the last couple of hours. We inched closer to the magical 13000 level but could not clinch it. It is only a matter of time that we see the Nifty trading at those levels. 13000-13100 is the next potential target but can also prove to be a stiff resistance for the markets.

Benchmark indices closed at fresh record highs for the third straight session on November 18 supported by the auto and financial stocks.

At close, the Sensex was up 227.34 points or 0.52% at 44180.05, and the Nifty was up 64.10 points or 0.50% at 12938.30. About 1496 shares have advanced, 1100 shares declined, and 153 shares are unchanged.

M&M, Tata Motors, Bajaj Finserv, L&T and IndusInd Bank were among major gainers on the Nifty, while losers included BPCL, HUL, Dr Reddy’s Labs, ITC and Titan Company.

Mixed trend seen on the sectoral front with Auto and PSU Bank indices added 3 percent each, while selling seen in the FMCG, IT and pharma names.

Gold inched up and moved in a narrow range on Wednesday, as investors weighed the prospects of a COVID-19 vaccine against concerns over rising cases and the possibility of further economic support from the U.S. Federal Reserve.

Markets regulator Sebi has tweaked its framework pertaining to allotment of units by emerging investment vehicle InvIT on a preferential basis.

The preferential issue of units would not be made to any person who has sold or transferred any units of the issuer during the six months preceding the relevant date, the regulator said in a circular. Read more

Oil prices edged higher on Wednesday as hopes that OPEC and its allies will delay a planned rise in oil output offset demand fears stoked by a bigger-than-expected build in U.S. crude stocks and weaker U.S. retail sales.

Vedanta Group on Wednesday confirmed putting in a preliminary expression of interest (EoI) for buying government''s stake in Bharat Petroleum Corp Ltd (BPCL).

Vedanta's interest in India's second largest fuel retailer is because of synergies with its existing oil and gas business.

The government is selling its entire 52.98 percent stake in BPCL and last date of putting EoI was November 16.

Equity mutual funds witness outflows for 5 months; is direct equity investing better?

A strong rally in the equity market is also seen as a reason for outflow from equity MF funds.... Read More

Silver prices are currently trading near $24.505, holding in range of $23.7-25.20 from last ten trading session. Weakness in US dollar and stimulus hope from US is likely to provide support to prices.

Dovish comments from central banks are providing support to bullion prices. U.S. Federal Reserve Chair Jerome Powell said on Tuesday it was not time to shut down emergency programs aimed at battling the economic fallout from the pandemic and the economy is left with "a long way to go" to recover.

Although Silver prices were under pressure due to rising number of covid cases globally.Uncertain trade agreement between European Union and Britain is also likely to keep a lid on silver prices.

According to Reuter’s news report, Investment in silver coins and bars will hit a five-year High this year and exchange-traded funds will expand their hoard by 350 million ounces to a record 1.1 billion ounces.Silver prices are likely to find support near 100 days EMA at $23.96 and 200 days EMA at $22.470 , meanwhile critical resistance could be seen near $25.12-27.37.

WonderlaHolidays share price rose 12 percent on November 18 after its Wonderla Bangalore is opening for water rides from November 20, 2020. Company announced that the water rides at the theme park will be open to the public from November 20, 2020. The dry rides have already been operating since November 13.