Taking Stock: Sensex rallies 600 points; Nifty50 reclaims 11,600 level
Top Nifty gainers included IndusInd Bank, Adani Ports, and HDFC.... Read More
The bulls continued to dominate as the benchmark indices registered strong gains led by supportive global cues. The Nifty index ended higher by 1.4% at 11,662 levels. The broader markets underperformed for the second day in a row but both Midcap and Smallcap managed to end higher by 0.5% each. On the sector front, except Capital Goods, Metal and Oil & Gas, all the other indices ended in green wherein Realty, Banking and Auto are the top gainers.
We’re currently dancing to the global tunes however we may see a shift in the focus with the beginning of the earnings season. Besides, the RBI has announced the new dates for the MPC meet and the outcome will be out on October 9. We thus expect rate-sensitive pack to remain volatile in the near future. Amid all, Nifty has surpassed the hurdle at 11,600 and we’re now eyeing the 11,800 zone so traders should continue with “buy on dips” in the index while stocks may continue to see the swings on both sides.
The Nifty closed in stellar form. It also managed to cross its intermediate high of 11618 which was made on 16 September 2020. We should now achieve 11800 which is the next resistance level. The trend and sentiments are bullish and we could even achieve 12000 once we get past 11800.
Rupee ended Lower Tuesday on likely intervention by the Reserve Bank of India (RBI) near intraday low levels, followed by oil importers dollar buying as the crude prices settled higher in last few days. RBI intervened around Rs 73.15/$1 and nationalised banks were on buy side. Range for rupee remains inside 73.10-73.75 broadly.
Bulls were firmly in control on Tuesday as we saw spirited buying in Pivotals as well as in sectors like Mortgage & Cement. Expectations of Relief Measures for sectors adversely impacted by the Pandemic also lifted investor sentiments in the broader market.
Benchmark indices ended higher for the fourth straight session on October 6 supported by the positive global markets.
At close, the Sensex was up 600.87 points or 1.54% at 39574.57, and the Nifty was up 159 points or 1.38% at 11662.40. About 1488 shares have advanced, 1165 shares declined, and 159 shares are unchanged.
Tata Motors, HDFC, M&M, Adani Ports and IndusInd Bank were among major gainers on the Nifty, while losers were Britannia Industries, Coal India, Tata Steel, Hindalco Industries and Wipro.
On the sectoral front, except IT, FMCG, pharma and energy other indices ended in the green. BSE Midcap and Smallcap indices rose 0.5 percent each.
IndusInd Bank share price gained more than 4 percent on October 6 after reporting provisional numbers for Q2FY21. Deposits in July-September quarter grew at 10 percent compared to the same period last year and 8 percent compared to the previous quarter.
Advances registered a 2 percent year-on-year growth and 1 percent sequential growth in the September quarter.
Nymex November Natural Gas prices on Monday rallied on concerns that Tropical Storm Delta will strengthen into a hurricane, as it moves through the Gulf of Mexico. It may force producers to halt production in the Gulf of Mexico.
Tropical Storm Delta could strengthen to a Category 3 hurricane, and make a landfall on Friday, between Louisiana and Florida. Nymex Natural gas November expiry contract is likely to find support due to lower US production, and the upcoming storm on Gulf of Mexico.
It may find key support around the 10-days EMA at 2.45, while an immediate resistance could be seen around 3.027 levels. However, demand concerns are likely keep a lid on the prices.
The Tata Motors Group global wholesales in Q2 FY21, including Jaguar Land Rover, were at 2,02,873, lower by 16%, as compared to Q2 FY20.
Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in Q2 FY21 were at 56,614., lower by 29%, over Q2 FY20.
Global wholesales of all passenger vehicles in Q2 FY21 were at 1,46,259, lower by 9% as compared to Q2 FY20.
Dolly Khanna has raised stake to 1.67% in September quarter from 1.39% in June quarter, reported CNBC-TV18.
The Reserve Bank of India is widely expected to keep rates steady when its two-day monetary policy committee (MPC) meeting concludes on Friday, said Reuters.
The RBI said it will hold the MPC meeting from Oct. 7 to OCt. 9, having delayed it by a week in order to give the government time to appoint three new external members to the panel, it added.
Toll Logistics has chosen Ramco Logistics ERP to transform the complete supply chain operations of its Chemicals business division in Australia and New Zealand. In addition, Ramco Logistics will also be rolled out as a unified out-of-the-box ERP across its new businesses in Asia.
COMEX gold trades marginally lower near $1916/oz after a 0.7% gain yesterday. Supporting gold price is a weakness in the US dollar index which is hovering near a 2-week low on reduced safe-haven buying.
Gains in the equity market have however kept a check on gold price while ETF investors have moved to the sidelines.
Gold continues to hold above $1900/oz level which shows that the overall momentum is still positive however choppy trade is likely as the trend is US dollar will be counterbalanced by general market risk sentiment.
