Taking Stock | Buying in IT, financials push Nifty towards 17,200, Sensex rises 684 pts

The market bounced back sharply on October 14 with Nifty finishing near 17,200 on the back of positive global cues, ignoring slightly higher than expected US September CPI inflation numbers.

The domestic markets started on a firm note taking cues from positive US and Asian markets and saw extended buying as the day progressed. However, selling in the final hour pared some of the intraday gains.

At Close, the Sensex was up 684.64 points or 1.20% at 57,919.97, and the Nifty was up 171.40 points or 1.01% at 17,185.70.

For the week, BSE Sensex fell 0.46 percent and Nifty50 shed 0.74 percent.

"With Inflation becoming the most widely watched economic statistic globally, yesterday's inflation print in the US saw extreme volatility there and as expected our markets opened gap up in sync with global cues," said S Ranganathan, Head of Research at LKP securities.

"IT & Financials buoyed by earnings led the rally before profit-taking in Energy stocks wiped off a bit of gain. The broader markets did see buying interest in select stocks on the back of quarterly earnings although the gains were visible only across Large Cap names," the market expert added.

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Stocks and sectors

Infosys, HDFC Bank, HDFC, UPL and HCL Tech were among the top Nifty gainers. ONGC, M&M, Bajaj Auto, JSW Steel and Hindalco Industries were the top losers.

Among sectors, Nifty Bank and Information Technology indices were up 1.5 percent each, while Energy, Auto and Metal indices were down 0.5-1 percent.

BSE Midcap and Smallcap indices ended on a flat note.

On the BSE, a mixed trend was witnessed on the sectoral front with Bank, Capital Goods, Healthcare and Information Technology indices rising between 0.5-1.7 percent, while Auto, Power, Realty and Oil & Gas indices were down 0.5-1 percent each.

A long build-up was seen in GNFC, Federal Bank and Indraprastha Gas while a short build-up was witnessed in India Cements, Nalco and Max Financial Services.

On the BSE more than 100 stocks touched their 52-week high including Federal Bank, Sun Pharma, TVS Motor, Religare Enterprises, KRBL, ITD Cementation India and IDFC,

Among individual stocks, a volume spike of more than 300 percent was seen in Max Financial Services, Federal Bank and L&T Infotech.

Also Read: Markets cheer IT earnings and global rally

Outlook for October 17

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty had a strong leap from the support zone of 17,000-16,950. It broke out from a triangular pattern on the hourly chart & surpassed the key daily moving averages with an opening gap.

The index, however, failed to build upon the early gains. On the contrary, it witnessed fresh round of selling in the second half of the session.

The overall structure shows that the index is still in the short term consolidation phase. In terms of the price patterns, it can form a triangular pattern on the daily chart. This implies that the range bound action can continue in the short term. The index can revisit 17,050 on the downside. On the other hand, the near term resistance is at 17,350.

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