Closing Bell: Nifty ends near 17,800, Sensex jumps 488 pts ahead of RBI policy; Titan gains 10%

Nifty opened with a gap of 160 points but then traded within a narrow range of 17800 to 17850. Among sectors, strong buying was seen in auto and reality stocks. Amid auto stocks, Tata Motors gain the most rallied over 11 percent. While energy stocks witnessed technical selloff at higher levels.

Technically, a strong bearish candle followed by inside body candle formation clearly suggests indecisiveness between the bulls and the bears. The market is consistently taking support near 20 day SMA but at the same time witnessed profit booking near 17,900 level. For the day traders, 17,720 would be the trend decider level.

After opening in green, Nifty maintained the lead and closed with a gain of 0.85% at 17,796.20. Whereas Bank Nifty closed with a gain of 0.63% at 37,757.20 and Sensex with a gain of 0.80% at 59,667.52.

With the commencem of this festive season we believe strong buying can be seen in auto, textile and realty stocks. IT earnings are starting from tomorrow and the market seems to be quite optimistic on it.

On technical front, Nifty can face resistance at 17,915 levels and a good support can be seen at 17,688 levels.

The Nifty had a sharp bounce on October 07 after a steep decline on October 06. Nevertheless, this bounce is a part of the short term consolidation process. Structurally, the consolidation over the last few sessions has taken form a triangular pattern. With today’s bounce the Nifty has once again tested upper end of the pattern & formed distribution over there throughout the day.

Hereon the index is expected to slide down towards the lower end of the pattern, which is near 17,550. On the flip side, the resistance zone of 17,900-17,950 will continue to maintain pressure on the higher side.

There has been a cool-off in energy prices, US Dollar Index and bond yields and that has helped USDINR spot to close 19 paise lower at 74.78 levels. Volatility can increase over Friday and Monday, as RBI announces monetary policy and US releases jobs data for the month of September. We expect USDINR to operate within a range of 74.40 and 75.00 on spot.

On a weekly expiry, the index opened on a gap-up note and showed strength throughout the day and set a high at 17857 levels. In the second half of the session, it showed some selling pressure & managed to close at 17790.35 Levels with the gain of 0.82%, while Bank Nifty managed to close with a slight gain of 0.63% at 37753.20 levels. Nifty Realty lead the show with 6.16% gains in a day.

On the technical front, the Index has formed a Doji kind of candlestick pattern which points out confusion between a buyer & a seller. Moreover, the Index has been trading above 21 DMA, which points out strength in the counter.

Momentum indicator stochastic is trading with positive crossover, which adds strength to the counter. On an hourly chart, the Index has been trading with the support of the middle band of the Bollinger band formation, sustain above the same can show further upside movement. At present, the index has immediate support at 17,500 level, while resistance comes at 17,900 levels.

The market saw a smart rebound in Q3 2021 as mobility restrictions were relaxed and businesses started to return to normal. Sales grew by a considerable 92% YoY to 64,010 units during Q3 2021.The enhanced need of the homebuyer to own a home, lower house prices, interest rates at a record low of under 7% and stamp duty cuts in some of the key markets, have been the primary drivers of increased sales traction in 2021.

Residential sales in this quarter even exceeded the pre-pandemic 2019 average quarterly sales by 4%, signifying a return to normalcy. Demand momentum was strong across markets in Q3 2021 with all markets reporting a YoY growth in sales. Homebuyers are more inclined to acquire ready or near-ready inventory to minimise completion risk.

The markets seem to have factored in the very low likelihood of a complete lockdown as was seen last year, due to the ample availability of the COVID vaccine. Comparatively lower residential prices, attractive interest rates and higher household savings rates over the past year should support housing demand going forward. Homebuyers’ preference for grade A developers and their access to cheaper credit has positioned them well in this recovering market.

Domestic market clawed its way out to a gap up opening following strong global sentiments, as US debt default worries calmed along with easing bond yields and crude oil prices. The domestic market was pushed by strong buying in auto, realty & IT sectors which bolstered the market to sustain the trend in favour of the bulls.

Despite the global semiconductor shortage, auto stocks sparked a rally in hopes of demand revival during the festive season while the expectation of better Q2 numbers for IT and strong pre-sale numbers helped the realty sector.

The market witnessed some positive movements and an attempt to hold the level around the Nifty 50 Index level of 17,700. The market shows that it is going to be crucial for the short-term market scenario to sustain above the 17800 level.

If the market is able to sustain the level of 17,800, it can witness higher levels of 18,000. The momentum indicators like RSI and MACD indicating positive momentum is likely to continue.

Bulls stepped up the accelerator ahead of the RBI policy led by the Auto Index which was up 4.5% in afternoon trade today. As the festive season commenced we saw heightened activity in textiles, consumer durables & real estate stocks.

The IT Index lent good support ahead of earnings starting tomorrow. While the street would be keen to watch the RBI stance tomorrow, the market breadth was very good with the small & midcap indices buzzing with optimism.

: Indian market ended higher with Nifty near 17,800 mainly supported by the buying seen in the auto and realty name.

At close, the Sensex was up 488.10 points or 0.82% at 59677.83, and the Nifty was up 144.30 points or 0.82% at 17790.30. About 2096 shares have advanced, 1023 shares declined, and 119 shares are unchanged.

Tata Motors, Titan Company, M&M, Maruti Suzuki and Eicher Motors were among the major gainers on the Nifty. ONGC, Dr Reddy's Labs, Coal India, Britannia and HDFC were among the big gainers.

Except oil & gas, all other sectoral indices ended in the green, with Nifty realty and auto indices rising 4-6 percent. BSE midcap and smallcap indices added over 1 percent each.

WTI Crude oil is now trading at $75.73, down slightly from the previous day's close, on the back of an unexpected increase in US crude inventory, which has raised demand concerns. WTI crude oil, on the other hand, hit a multi-year high of $79.78.

Yesterday, the market rose on the back of a positive demand outlook for Covid-19-related travel relaxation in the US and the Eurozone, as well as limited supply from OPEC.

Crude oil prices are expected to remain stable due to limited production from OPEC+ members and strong global energy demand. However, a threat from the United States of releasing SPR reverse is likely to limit the gains.

WTI Crude oil is expected to find strong support near the 20-day moving average of $74.02 per barrel and the 50-day moving average of $71.97 per barrel. In the meantime, immediate resistance can be found between $78 and $80.96 per barrel.

India's capital market regulator is unlikely to give exemption to the company acquiring BPCL from making mandatory open offers for Petronet LNG Ltd and Indraprastha Gas share purchases which will be countered by other promoters of the two firms such as GAIL to save from going private, officials said. Click to read more

S&P BSE Realty up by 5.83% today and up by 30% in the last one month. Today Sobha up by 15.7% on the back of the announcement of best ever pre-sales volumes for the Q2FY21 along with Macrotech Developers Limited (Lodha) reported very strong pre-sales.

We have seen very strong demand after the covid first wave and even it got continued after the 2nd wave of covid also, we are heading towards the festival season and we are expecting this pre-sales momentum to continue as home loan interest are at its decades lows. We have a buy rating on Sobha and a neutral rating on Godrej Properties.