From power outage in Mumbai to a technical glitch in the Nifty that prevented rates from updating for some time, the week was off to a choppy start and even an economic package from Finance Minister Nirmala Sitharaman failed to lift investor sentiment on October 12.
The S&P BSE Sensex recovered from lows to close in the green for the eighth consecutive day while the Nifty50 also recovered but failed to reclaim 12,000.
Both the indices recorded their longest gaining streak in 30 months, as the Sensex rose 84 points to 40,593 and the Nifty50 ended 16 points higher at 11,930.
"To sustain the market trend, a lot will depend on the size and effectiveness of the stimulus. Cash voucher and advance scheme, sops to government employees, failed to cheer the market as it did not provide the required boost to the economy as expected,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
It is anticipated that more measures will be revealed in the future. The market will pin hopes on Q2 results and an end to the moratorium saga. “IT, banks and FMCG will be the sectors in focus in the near term,” he said.
Sectorally, action was seen in IT, healthcare, FMCG while some profit-booking was seen in metals, telecom, oil & gas and realty.
The broader markets ended in the red. The S&P BSE midcap index fell 0.48 percent while the smallcap index closed with losses of 0.40 percent.
Top Nifty gainers included ITC, Infosys, and UPL.
Top Nifty losers included Bharti Airtel, JSW Steel and GAIL India.
Stocks & Sectors
Sectorally, action was seen in the S&P BSE IT index that rose 1.4 percent, the healthcare index was up 0.46 percent and the FMCG index gained 0.27 percent.
Profit-taking was seen in the S&P BSE metal index that plunged 3.6 percent. The telecom index was down 1.7 percent and the oil & gas index slipped 1.1 percent.
A volume spike of more than 100 percent was seen in SRF, Naukri, and Coforge.
Long buildup was seen in stocks like Coforge, Wipro and Infosys.
Short buildup was seen in stocks like Canara Bank, SAIL and MGL.
More than 100 stocks on the BSE hit a fresh 52-week high. These included L&T Infotech, Valiant Organics, Hero MotoCorp, and Apollo Hospitals.
Technical View
The Nifty formed a Doji candle on the daily charts.
As the Nifty witnessed a mild selloff from the critical psychological resistance point with an intraday high of 12k levels, twin momentum oscillators generated a sell signal, experts said.
In the next couple of trading sessions, a sideways session or a dip towards 11,800 levels is expected. A bigger correction is possible if the Nifty closes below 11,790, they said.
“As momentum is high, despite negative advance-decline ratio for the fourth session in a row, if Nifty manages a close above 12k levels in next session, then the index can head higher towards 12200 levels whereas weakness on the intraday basis can get accelerated if Nifty trades below 11867 levels with initial targets of 11800,” Mazhar Mohammad of Chartviewindia.in. said.
“For time being, considering the current volatile phase, we advise traders to avoid directional bet on the index by shifting focus to stock-specific opportunities,” he said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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