Closing Bell: Sensex, Nifty end higher amid volatility led by IT, power, metal, PSU banks

The Nifty remained volatile during the session as Nifty recovered from the day's low to close around the high. The 50EMA remained below the index value on the daily chart, confirming the ongoing uptrend.

The momentum indicator on the daily chart remained in the bullish crossover. The short-term trend remains positive with the potential to take the Nifty towards 17700. On the lower end, support is visible at 17400.

Bulls made a spectacular comeback after morning session drubbing. After wobbling in early trades, the markets regrouped on value buying backed with short covering.

The positive catalyst was the rupee rebounded to close below the 83-mark. Technically speaking, Nifty’s immediate hurdle is seen at 17609 above the same, all eyes will be on Nifty’s psychological 18,000 mark.

Markets staged a smart recovery towards the fag-end helped by strong gains in IT stocks. Despite bearishness in Asian and European indices, Indian markets maintained their winning streak as investors remain optimistic about our growth story.

The world economy remains mired under several negative factors, but the local economy has managed to stay resilient despite challenges from the external front.

After a gap down opening the Nifty held the crucial support level of 17400 and bounced back sharply thereafter. It has also formed a bullish candle on daily charts and closed above the 50-day SMA which is broadly positive.

For Nifty bulls, 17400 -17450 could be the key support zones, above which the index could move up to 17700-17750. On the flip side, uptrend would be vulnerable below 17400.

Nifty opened lower on Thursday, following dour sentiment in other Asian markets for risky assets as U.S. Treasury yields surged on fears that the Federal Reserve will continue on its aggressive rate-hike path. Nifty made an intraday low at 17421 the level but showed a bounce back in the second half & managed to close at 17563.95 the level with a gain of 51.70 points.

On the technical front, the Nifty has been trading with the support of 21HMA & given the closing above the same suggests strength for the upside. On the call side, the highest was witnessed at 17800 while on the put side was at 17400 level. The Hourly momentum indicator STOACHSTIC was trading with a positive crossover which suggests a downside moment in the upcoming session.

The support for Nifty has shifted around 17350 levels while on the upside 17600 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 39300 levels while resistance at 40500 levels.

Overall, Nifty managed to close above 17500 levels, any dips should be considered as buying opportunities.

Markets maintained consolidation bias on the weekly expiry day and ended marginally higher. Weak global cues triggered a gap-down start in the Nifty however buying in IT, energy and banking majors not only pared losses but also pushed the index in the green.

Consequently, Nifty closed near the day’s high to end at 17,563.95 levels. Meanwhile, the broader indices underperformed and ended marginally lower.

Markets are digesting the recent gains however the tone is still positive, thanks to noticeable buying interest on every dip. However, we’re seeing limited participation across sectors so the focus should remain on stock selection. Needless to say, further recovery in the global indices, especially the US, would strengthen the trend and help the Nifty to inch toward the 17,800 levels.

The sharp increase in US yield, global market weakness, and unexpected drop in INR promoted selling pressure in the domestic market. Globally, investors expect the Fed to stay aggressive, raising interest rates by 75 basis points in the next two policy sessions, bringing the fed rate as high as 4.50% to 4.75%, by the end of the year.

The strong domestic market, on the other hand, regained its losses as the RBI is expected to be less aggressive as domestic inflation is thought to have peaked. However, FPI inflows are anticipated to remain volatile in the short-term due to elevated US yields.

Indian rupee closed 27 paise higher at 82.75 per dollar against previous close of 83.02.

Indian benchmark indices ended on positive note in the volatile session on October 20.

At Close, the Sensex was up 95.71 points or 0.16% at 59,202.90, and the Nifty was up 51.70 points or 0.30% at 17,564.00. About 1597 shares have advanced, 1721 shares declined, and 129 shares are unchanged.

UPL, Adani Enterprises, Tech Mahindra, HCL Tech and Adani Ports were among the top Nifty gainers. IndusInd Bank, Asian Paints, Apollo Hospitals, UltraTech Cement and HDFC Bank were the top losers.

Among sectors, Information Technology, metal, PSU Bank, power and oil & gas up 1 percent each.

The BSE midcap and smallcap indices ended on flat note.

Cigniti Technologies has posted 87.4 percent jump in its Q1 net profit at Rs 41.5 crore versus Rs 22.2 crore, YoY.

Cigniti Technologies was quoting at Rs 581.00, up Rs 29.45, or 5.34 percent.

On domestic front, gold and silver prices gets a boost during festive season. Fall in precious metal was restricted following rupee depreciation that was to the tune of ~10% coupled wiith hike in basic customs duty on gold imports by 5%. As India is a price taker any movement in COMEX affects our prices.

Macro-economic backdrop does have an upper hand this year, major focus is on central bank’s monetary policy, inflationary pressure, and geo-political tensions. If there are any changes in these factors, we could see some short covering, which could take gold prices much higher and quicker, but we feel that till the time we don’t see a change in stance from major central bankers w.r.t aggressive interest rate hikes, we could continue to witness pressure on gold prices.

Amidst these uncertainties, it is advisable to have gold and silver in one’s portfolio. Hence, anyone who is looking to invest in gold and silver with a medium to long-term outlook can start to accumulate at these levels.

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