Closing Bell: Nifty ends near 11,900, Sensex gains 376 pts; Nifty Bank outperforms

Taking Stock: Bulls back in action; Sensex up 377 points, Nifty goes past 11,850

The top gainers on the Nifty were Kotak Mahindra Bank, Shree Cements, Nestle, Asian Paints and Bajaj Finance.... Read More

Market sentiment improved following the positive news flow of likely increase in weight and inclusion of potential candidate in the MSCI index portfolio. This witnessed spectacular rallies in private banks, auto and FMCG stocks. Selective buying in construction and capital goods space also helped the market to reach the level of 11899.

On an intraday basis, the Nifty has hit a double bottom at 11,720. On a daily chart, the market is on the verge of forming an ascending triangle, which would spend time between 11700 and 12050 levels. The Bank Nifty is in rising consolidation and could move to the 25300 levels after the dismissal of 24850.

The upside bounce of Tuesday could be another evidence of comeback of bulls after a sharp weakness. As happened in the past, one may expect further upside in the market for the short term and possible retest of 12000 mark in the next few sessions. Immediate support is placed at 11710 levels.

Forecast of higher FII inflows to India, based on MSCI report, by raising investment limits helped the market to strongly outperform despite a weak global market. The sustenance of such a trend is low given increasing concerns over worsening spread of virus in western world which has weakened their markets for further correction. Indian market is expected to follow with an increase in volatility in the coming days as we are heading closer to the US election and more economic restrictions due to the devastating rise of Covid cases.

Markets witnessed a decent rebound after the slide in the previous session. The benchmark initially inched lower but healthy buying in banking and financial stocks led to a strong recovery, which later joined by others. Consequently, the Nifty index settled at 11,889 levels; up by 1%. The broader market indices saw healthy buying and ended in a range of 0.6-1.6%.

The rebound in Nifty indicates that the prevailing consolidation phase will continue and we might have to wait for the next directional move. Meanwhile, markets are offering trading opportunities across the board and traders should proactively manage their positions in such a scenario. Investors, on the other hand, should not give much weightage to these short term price fluctuations and maintain their focus on accumulating fundamentally sound stocks on dips.

After going below the crucial support of 11,750 in early hours of trade, the Nifty swiftly flew past the 11,850 level and closed above it. The index needs to cross 11,900-11,950 in order to generate early buy signals and thereafter we can expect the index to achieve 12,200-12,300. Breaking of 11,700 would indicate a fresh wave of sells which could drive the index down to 11,400-11,450.

Bulls took centre stage today led by Financials as Kotak Bank led from the front buoyed by MSCI review. Afternoon trade witnessed FMCG taking control ably supported by cement stocks. Broader markets also saw participation across select counters.

: Benchmark indices regained some of the previous session losses and ended higher with Nifty above 11,850 supported by the Bank Nifty and Pharma names.

At close, the Sensex was up 376.60 points or 0.94% at 40,522.10, and the Nifty was up 121.60 points or 1.03% at 11,889.40. About 1249 shares have advanced, 1354 shares declined, and 178 shares are unchanged.

Kotak Mahindra Bank, Shree Cements, Nestle, Asian Paints and Bajaj Finance were among major gainers on the Nifty, while losers were TCS, Infosys, ONGC, Wipro and HDFC.

Except IT and PSU Bank index all other sectoral indices ended in the green. BSE Midcap and Smallcap indices ended higher.

Tata Motors has recorded 100% YoY growth in car bookings during Navaratri and witnessed 90% YoY growth in PV retails during Navaratri, Sources told to CNBC-TV18.

Gland Pharma has received capital markets regulator Sebi's go-ahead to launch an initial public offer that includes fresh issue of shares worth up to Rs 1,250 crore. Apart from the fresh issue, there is an offer for sale (OFS) of a little over 3.4 crore shares as part of the initial public offering. As per the market news this IPO can be of Rs 5,000 crores of worth.

The Hyderabad-based company, backed by China's Fosun Pharma, they also have an extensive track record in complex injectables development, manufacturing and marketing and a close understanding of the related sophisticated scientific, technical and regulatory processes. This is one of the first Indian pharma companies with a Chinese parent to go for public listing.

CSB Bank has entered into an agreement with IIFL Finance on October 27, 2020, for partnering with them for gold loan origination through Business Correspondent Model.

Tata Consultancy Services has been selected as a strategic partner by Equinor, the Norway-headquartered global energy company, to accelerate its digitalization journey and help realize its vision of becoming a digital energy company.