Closing Bell: Rally continues for 5th straight day; Nifty ends above 12,250, Sensex gains 552 pts

Taking Stock: Sensex, Nifty close at over 10-month high on positive global cues

Bajaj Finserv, Reliance Industries, IndusInd Bank, HDFC Bank and Kotak Mahindra Bank were among the top gainers on the Nifty.... Read More

Markets maintained the prevailing momentum taking cues from the global counterparts and gained over a percent. Among the benchmark indices, the Nifty index maintained its positive bias throughout the session and ended higher by 1.2% at 12,264 levels. However, the broader markets underperformed but managed to close higher with midcap and smallcap gaining 0.4% and 0.5% respectively. On the sectoral front, Banking, Consumer Durables and Oil & Gas were the top gainers whereas Telecom and Healthcare traded subdued.

Markets are currently riding high on global optimism and favorable earnings announcements. As a result, the benchmark indices have also reached closer to their record high. We might see a pause early next week but the bias would remain on the positive side and there’ll be no shortage of trading opportunities. However, we feel traders should maintain extra caution in the selection of stocks as we may continue to see volatile swings across the board.

Fall in the dollar index helped our market to move higher. In fact, FIIs investing more than Rs 5000 crore in the cash segment on the day of weekly expiry has cheered the market sentiment substantially. Similarly traders too betted heavily on the alpha stocks. This helped Nifty 50 index closed above the level of 12250, which is 200 points away from the all-time highs.

On a weekly basis, Nifty 50 index has closed above the highs of the last 3 weeks under the leadership of Bank Nifty which gained 11.97 percent for the week.

Further upside is clearly visible but we need to be stock specific until the market doesn't cross and sustain above 12450. On the downside, Nifty 50 index is expected to find support between 12000 and 11900 levels.

The frontline indexes moved up further today, and rally was seen in all major sectors except FMCG, auto and healthcare. The market seems to be quite happy about greater certainty about US policies in the coming days. However, it is a fact that the markets have moved up too fast in too short time, and this calls for focus on quality stocks and actively managed portfolios. The final outcome of the US election, the state of the pandemic, and the future course of the Indo-China border conflict are factors which are relevant to trade trajectory of the markets in the coming weeks.

Positive global sentiment from the US election, expectation of Fed open market operation and improving economic activities have added optimism. It can take Indian market to a new zone over-weighing worries over increasingCovidcases backed by a strong performance in sectors like banking, IT,Pharmaand exporters. We expect this momentum to sustain aided by positive Q2 results, favorable economic data, strongFIIbuying and expectations of an additional stimulus package.

12200 was a resistance level for this month's expiry. We have successfully crossed and closed above that. This should push the Nifty to its next level which is 12400. The macro trend of the index is positive and any dip or correction can be utilised to buy into this market. The Nifty has a very good support at 11500.

: Benchmark indices rallied for the fifth consecutive session on November 6 led by the energy and financial stocks.

At close, the Sensex was up 552.90 points or 1.34% at 41893.06, and the Nifty was up 143.20 points or 1.18% at 12263.50. About 1478 shares have advanced, 1106 shares declined, and 186 shares are unchanged.

Bajaj Finserv, Reliance Industries, IndusInd Bank, HDFC Bank, Kotak Mahindra Bank were among major gainers on the Nifty, while losers included Maruti Suzuki, GAIL, Bharti Airtel, UltraTech Cement and Asian Paints.

Among sectors, buying seen in the bank, energy, IT and metal sectors, while FMCG and Pharma remained under pressure. BSE Midcap and Smallcap indices ended 0.3-0.5 percent higher.

PNC Infratech in Joint Venture with SPML Infra has been declared as the L1 (lowest) bidder for Survey, Design, Preparation of DPR, Construction, Commissioning and O&M for 10 years of Rural Water Supply Project in 979 villages in Devipatan Division of Uttar Pradesh.

PNC Infratech’s share in the JV is 95%. State Water Supply & Sanitation Mission, Namami Gange & Rural Water Supply Department, Government of Uttar Pradesh is the Authority for the Project.

Global equities rallied during the week shrugging off concerns of market volatility related to the outcome of the US elections. The US markets rose 7.1%, one of the best weeks in several months. Victories by Republicans in several key Senate races, thus lowering the odds of a “blue wave” and potential higher taxes and stronger regulations, have been cited by Wall Street strategists as a reason for the rally in tech stocks.

Indian equities also bounced back with a gain of ~ 5.7%. Positive macroeconomic data on core sector growth, rebound in GST revenues and robust power demand is driving economic recovery. Earnings announcements have also been largely and many of the frontline companies in IT and private sector banks have reported higher than expected profits. All this, has boosted investor sentiment. Going ahead, we would sound a word of caution as valuations are almost fair. At this juncture, investors are advised to be wary of market correction. Don’t rush to buy just because markets are making new highs, is our suggestion.

Gold fell on Friday, as the dollar gained, but was set for its best week since late July on hopes for more central bank economic support as investors bet on a divided USCongress under a Joe Biden presidency.

The company posted consolidated net loss at Rs 64.6 crore against profit of Rs 98.4 crore, while revenue was up 7.2% at Rs 2,479.2 crore against Rs 2,312.7 crore, reported CNBC-TV18.

Rupee traded weak on Friday on back of dollar index strength and covered short position seen in USDINR. As we go into weekened US Election outcome is still a overhang and the Open Interest (OI) data suggests position is being covered due to volatile swings dollar is wtinessing. Range remain between 74-75.

Oil fell towards $40 a barrel on Friday as new lockdowns in Europe to halt surging COVID-19 infections sparked concern about the outlook for demand, while markets remained on edge over drawn-out vote counting in the U.S. election.