Closing Bell: Market ends at fresh record closing high led by auto, power stocks

Taking Stock: Sensex Closes Above 60,000 On Auto, Power Stocks; Nifty Hits 18,000 Peak

More than 350 stocks, including Bata India, Reliance Industries, Tata Motors, Voltas, DB Realty, hit a 52-week high on the BSE.... Read More

The Index opened on a negative open but showed strength throughout the day and managed to cross the psychological level of 18000 and made a new lifetime at 18041.95 level but in the dying hours showed some profit booking and managed to close at 17945.95 level with a gain of 50.75 points. While Bank Nifty closed the session at 38293.80 level with a gain of 518.55.

On the technical front, the index has given a breakout of a major resistance level which points to strength for the upside in the upcoming session. The ADX has closed at 37 levels, which indicates good volatility for the upcoming trading session.

The index has been trading above 21*50 Hourly Moving averages which suggest upside movement. The stochastic indicator has also given a positive crossover which indicates a north move for the counter. At present, the Index has immediate support at 17800 level while resistance comes at 18050 levels.

Benchmark Indices gained for the third consecutive session with Nifty 50 gaining +0.28% and Sensex gaining +0.13%. Nifty scales Mount 18000 for the first time and Sensex closes above 60000 today.

On the technical front, indicators such as RSI and MACD are indicating that strong positive momentum in Nifty 50 is likely to continue and we may see 18,200-18,300 levels in the short term. Strong support can be seen at 17,700 level while 18,200 level may act as an immediate resistance.

Indian markets advanced sharply in the first half but erased most of its early gains after dismal TCS results, resulted in heavy selling in the IT pack. Technically, the market has formed a shooting star pattern at the top of the rally, which is an indication of an uncertainty in the market.

There should be a strategy to reduce the weak long positions in the market to the resistance levels that exist at 17,980, 18,040 and 18,080. If the Nifty forms a positive reversal after hitting the major supports that exist at 17,850 or 17,810, a buy call is advised. In case, the Nifty closes below the 17,800 level, it could weaken further to the 17,600 level.

The domestic market continued its bullish run backed by gains in banking, power, realty and auto sectors. However, the indices gave away early gains following weakness in global peers due to rising commodity prices and the upcoming earnings season, compelling investors to trade cautiously.

The auto sector continued its outperformance in expectation of demand revival during the festive season and power & renewable energy will continue to be in focus.

Banking stocks followed the trend owing to strong business preview numbers and favourable credit growth data. However, the IT sector was under pressure as initial earnings releases failed to meet market expectations.

Indian markets started on a positive note following positive Asian market cues as investors took comfort on news of opening up more vaccinated travel lanes in 8 countries as covid cases declines. During the afternoon session markets continue to trade handsomely as broad gains in rate sensitive counters, viz, auto, realty and utility.

Further, even improved risk appetite in backdrop of positive global set-up has kept the sentiment upbeat. Traders also took support as data showed country’s exports growing at a healthy rate. Exports have touched USD 197 billion during April-September this fiscal. Additional optimism came in as foreign portfolio investors (FPIs) remained net buyers to the tune of Rs 1,997 crore so far in October.

The market witnessed some positive movements and an attempt to hold 18,000 Nifty 50 Index. It is going to be crucial for the short-term market scenario to sustain above the 18000-18030 zone.

If the market is able to sustain the level of 18,000, it can witness higher levels of 18,250. The momentum indicators like RSI and MACD indicating positive momentum is likely to continue.

The Nifty scaled mount 18K today led by Reliance, auto & power stocks even as the IT Index faced profit booking throughout the day.

The broader markets saw heightened activity in exchange stocks with Nifty PSE stocks lending good support. The afternoon session however did see profit booking as stocks do remain vulnerable to earnings disappointment.

Benchmark indices erased intraday gains but closed at fresh record high on October 11 supported by the auto, bank, metal, power and realty stocks.

At close, the Sensex was up 76.72 points or 0.13% at 60,135.78, and the Nifty was up 50.80 points or 0.28% at 17,946.00. About 1814 shares have advanced, 1375 shares declined, and 141 shares are unchanged.

Tata Motors, Coal India, Maruti Suzuki, Grasim Industries and Power Grid Corp were among the major gainers on the Nifty. TCS, Tech Mahindra, Infosys, HCL Technologies and Wipro were among the big gainers.

Among sectors, IT index fell 3 percent, while auto, bank, metal, power and realty indices added 1-2.5 percent. BSE midcap and smallcap indices rose 0.5 percent each.

Tata Motors has reported retail sales for the second quarter ending September 2021 were 92,710 vehicles, 18.4 percent lower than the 1,13,569 vehicles sold in Q2 last year.

Retails were lower year-on year in most regions, including North America (down 15.6 percent), China (down 6.3 percent), Europe (down 17.0 percent), and in the UK (down 47.6 percent), but were up in overseas region (up 10 percent).

Tata Motors touched a 52-week high of Rs 420.75 and was quoting at Rs 415.60, up Rs 32.65, or 8.53 percent on the BSE.

Affle (India) has received issue notification for the grant of 2 patents from US Patent & Trademark Office (US PTO).

One patent, bearing Patent no. 11157952 and date of issue as of October 26, 2021, is related to the technology of ‘Creating decentralized repository of fraud IPs and publishers using Blockchain’. Another patent, bearing Patent no. 11151605 and date of issue as of October 19, 2021, is related to the technology of ‘Click to install behaviour based detection of fraud’.

With these two patent grants, Affle now has 6 US Patents granted along with multiple other patents filed and pending across US, India and Singapore.

Affle India was quoting at Rs 1,221.90, up Rs 9.00, or 0.74 percent on the BSE.

The rally in Indian market is special as it was achieved despite muted global clues, global energy crisis, inflation threats and muted FII participation. We are in the initial phase of the exuberant bull run which is well supported by earning improvements, record tax collections, and participation of new investors will surely help Nifty make new highs in upcoming months.

There is no sign of topping out yet and markets are in the early stage of equity bull run which may take Nifty to 21000 level before witnessing a significant correction. Core market segment such as Banks, Auto, Financial sector are driving the rally now and ready to take nifty to higher levels. Yes, there could be few corrective sessions in between however the same will be considered as buying opportunity.

Equitas Small Finance Bank's gross advances in Q2FY22 increased by 13 percent to Rs 18,981 crore (provisional) from Rs 16,731 crore in Q2FY21 and total deposits rose 40 percent to Rs 18,094 crore (provisional) from Rs 12,901 crore in the same period.

Equitas Small Finance Bank was quoting at Rs 66.95, up Rs 2.80, or 4.36 percent on the BSE.