Taking Stock: Market cheers RBI decision; Sensex up 364 pts, Nifty at 19,650

For the week, the BSE Sensex and Nifty50 ended on a flat note.

Also Read: Bet on these 10 rate-sensitive stocks after RBI maintains status quo on policy rates

Stocks and sectors

Bajaj Finserv, Bajaj Finance, Titan Company, IndusInd Bank and Tata Consumer Products are among the top gainers on the Nifty, while losers included HUL, ONGC, Coal India, Bharti Airtel and Asian Paints.

All the sectoral indices ended in the green with the realty index up 3 percent, while Information Technology, FMCG, Metal, Auto, Power, Healthcare up 0.4-1 percent.

Broader indices performed in line with main indices with BSE midcap and smallcap indices rising 0.5 percent each.

A long build-up was seen in Godrej Properties, Bajaj Finserv and L&T Finance Holdings, while a short build-up was seen in Vodafone Idea, Dalmia Bharat and Indus Towers.

Among individual stocks, a volume spike of more than 200 percent was seen in Bajaj Finserv, Jindal Steel and GMR Airports Infrastructure.

More than 250 stocks touched their 52-week high on the BSE, including Tata Consultancy Services, Angel One, Sasken Technologies, Quick Heal Technologies, GOCL Corporation, among others. Click to View Full List

Outlook for October 9

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty opened gap up for the second consecutive day and traded with a positive bias throughout the day to close with gains of ~107 points. On the daily charts we can observe that the Nifty has managed to close above the 40-day moving average (19610) which is a Bullish sign. On the weekly charts we can observe that the Nifty has closed in the green and in term of pattern it has formed a Dragonfly Doji which has bullish implications.

We expect this pullback to continue till 19778 – 19800 where resistance in the form of the 50% Fibonacci retracement level and the 20-day moving average is placed. In the case of a dip towards 19530 – 19580 it should be used as a buying opportunity.

Bank Nifty opened gap up and thereafter consolidated for most part of the day. On the hourly momentum indicator, we can observe positive divergence and crossover which is a bullish sign. We expect the Bank Nifty to provide a pullback till 44800 – 45000 from short term perspective. In case of a dip we it should be used as a buying opportunity.

Ajit Mishra, SVP - Technical Research, Religare Broking:

Markets extended rebound amid volatility and gained over half a percent. After the gap-up start, Nifty inched gradually higher however the existence of a hurdle at 20 EMA capped the momentum. Finally, it managed to close around the day’s high at 19,653.50 level; up by 0.55%. All key sectors contributed to the move wherein realty, financials and pharma were the top performers.

The broader indices also edged higher and gained over half a percent each.

The recent bounce has certainly eased some pressure but we are now again at the hurdle of the short term moving average (20 EMA). We need sustainability above the same for a further recovery towards 19800 else the decline would resume. Meanwhile, traders should remain focused on stock selection and position management until we see clarity over the next directional move.

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