The S&P BSE Sensex hit a fresh record high of 40,483 on Monday while the Nifty50 closed above its crucial resistance levels of 11,900 but is still 162 points away from surpassing its record high of 12,103.
Indian market witnessed some profit-taking at higher levels, but bulls helped benchmark indices close above their crucial support which is a positive sign for the markets.
The final tally on D-Street – the S&P BSE Sensex rose 136 points to end at a record closing high of 40,301 while the Nifty50 closed with gains of 50 points to 11,941 on Monday.
Broader markets underperformed as the S&P BSE Midcap closed flat, while the S&P BSE Smallcap was up by 0.2 percent.
Plenty of action was seen in metals, telecom, and IT stocks while profit-taking was visible in Autos, consumer discretionary, realty, and FMCG stocks.
Given the recent surge which we have seen in markets bouts of profit-taking or consolidation cannot be ruled out. But, despite pressure at higher levels, Nifty managed to close in the green for the seven-straight day in a row.
"After a decent run-up over the last few sessions, some consolidation cannot be ruled out in the near term. The on-going corporate earnings season and global developments are likely to dictate the market trend in the coming sessions," Ajit Mishra Vice President, Research, Religare Broking Ltd told Moneycontrol.
"With more results scheduled in the next 1-2 weeks, stock-specific volatility is likely to remain high. Hence, investors should continue to focus on selective blue-chip companies," he said.
Stocks and sectors:
Sectorally, the S&P BSE Metal index rose over 3 percent, followed by the Telecom index which was up 2.1 percent, and the IT index gained 1.02 percent.
In terms of losers, the S&P BSE Auto index fell 1.29 percent, followed by the S&P BSE Consumer Discretionary index which was down by 0.8 percent, and the Realty index fell 0.6 percent.
Top Sensex gainers: Tata Steel, Infosys, Vedanta, and HDFC were up 2-3 percent, respectively.
Top Sensex losers: Tata Motors, IndusInd Bank, Hero MotoCorp, and Maruti fell by 1-2 percent, respectively.
Volume spike was seen in stocks like Cadila Healthcare, Infosys, Max Financial Services, CESC, Aurobindo Pharma, and HDFC.
Short Buildup: Cadila Healthcare, Apollo Tyres, ZEE Learn, YES Bank
Long Buildup: Chola Finance, Jindal Steel, Tata Steel
Stocks in news:
Housing Development Finance Corporation (HDFC) has registered a 60.5 percent year-on-year (YoY) jump in its standalone Q2 FY20 net profit at Rs 3,961.53 crore on the back of better operating performance. The stock closed 2.3 percent higher at Rs 2,178.
Can Fin Homes Q2 net Profit grew 19.7 percent at Rs 97.6 crore against Rs 81.5 crore YoY while revenue went up 19 percent at Rs 500 crore against Rs 420 crore YoY. The stock closed 4.3 percent higher at Rs 423.
The share price of Infosys added more than 3 percent on November 4 after the company clarified and said that there is no prima facie evidence that the company has received until date to corroborate any of the allegations made.
Shares of Jindal Steel & Power (JSPL) rose 11 percent on November 4 after the company had emerged as the highest bidder for the coal mine.
Shares of Varun Beverages rose 2 percent on Monday after the company's consolidated net profit jumped 83.7 percent at Rs 81.1 crore against Rs 44.1 crore YoY.
Technical View:
The Nifty50 formed a small-bodied candle which resembled a Shooting Star pattern
The Nifty has been forming higher highs – higher lows on weekly scale and supports are gradually shifting higher.
The index has to continue to hold above 11,880 levels to witness an up move towards 12,000 then 12,103 zones
On the downside, major support is seen at 11,780 zones.
Three levels: 11,905-11,880, 11,989, 12,103
Max Call OI: 12,000, 11,800
Max Put OI: 11,600, 11,500
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