Experts feel that in the coming week a lot of action will be centered on banking stocks
The festive cheer was clearly visible on D-Street in the last hour of the trading session as bulls helped the market to reverse losses. The S&P BSE Sensex recouped losses and closed above 39,000 while the Nifty50 also closed above 11,550 levels.
In the final tally on D-Street, the S&P BSE Sensex rose 37 points to 39,058 while the Nifty50 closed 1.30 point higher at 11,583.
The market will remain open for trade on Diwali – Laxmi Pujan on October 27 for one hour. This session is popularly known as Muhurat Trading and coincides with the beginning of the Hindu calendar year (Vikram Samvat 2076).
This day is considered auspicious, and any trades conducted in these 60 minutes is believed to usher prosperity, good fortune and wealth.
The Indian market will remain shut on October 28 on account of a public holiday. Trading will resume on October 29.
For the week, the Nifty50 closed flat with negative bias down 0.75 percent while the S&P BSE Sensex fell 0.6 percent for the week ended October 25.
Experts feel that, in the coming week, a lot of action will be centered on banking stocks. After stellar SBI numbers, some more PSU banks will declare their results in the coming week.
Stocks and sectors
Sectorally, the S&P BSE Public sector index rose 1.6 percent, followed by Bankex which was up 1.07 percent, and IT index gained nearly 1 percent.
On the losing front, the S&P BSE Consumer Durable index fell 1.78 percent, followed by the Telecom index which was down 1.67 percent and Infra index fell 1.12 percent.
Broader market underperformed – the S&P BSE Mid-cap index rose marginally while the Small-cap index fell 0.39 percent.
Volume spike was seen in InterGlobe, Page Industries, Cadila, Cipla, Piramal Enterprises, etc. among others.
Long Buildup: Sun TV, Page Industries, Yes Bank, and RBL Bank
Short Buildup: Cummins India, Torrent Power, Bharti Infratel, and GAIL India etc.
Top Nifty gainers: YES Bank and SBI rose more than 7 percent each while ICICI Bank gained 3 percent
Nifty Losers: Indiabulls Housing Finance, Bharti Infratel fell 7-8 percent respectively
Cues to watch out for the coming week:a) After stellar results from SBI, markets will react to ICICI Bank results which will be out on October 26.
b) Important results to track in the coming week include Bharti Airtel, Tata Global, United Bank of India, Syndicate Bank, Bank of India, and Yes Bank, among others.
c) October F&O Expiry on October 31 will keep markets volatile
d) Auto companies will be in focus as they start declaring their monthly sales numbers for October on November 1
e) FII trend will be something which investors will watch. They have turned net sellers for the past three trading sessions.
Stocks in news
Shares of State Bank of India (SBI) gained 7.19 percent to end at Rs 281.60 after the company reported a more than three-fold increase in Q2FY20 profit to Rs 3,012 crore compared to Rs 944.87 crore in the same period in 2018.
Shares of textiles firm Arvind ended at Rs 45.75, up 0.33 percent after the company posted a nine percent topline growth for Q2 FY20. However, the company's consolidated net profit declined 20 percent YoY to Rs 48 crore.
Shares of Tata Motors fell 4.87 percent to Rs 126.95 ahead of the automaker's September quarter earnings. Brokerages feel the company may continue to report a loss in the quarter ended in September year-on-year (YoY), dented by weak business in India. But, sequentially, the performance may be better due to improvement at Jaguar Land Rover (JLR).
Shares of InterGlobe Aviation, the owner of low-cost airline IndiGo, fell 11.91 percent to Rs 1,467.90 after the loss widened and margin contracted in the September quarter.
Shares of IDFC First Bank rose 4.76 percent to Rs 40.70 following the sequential improvement in asset quality though net loss widened QoQ as well as YoY in Q2 FY20.
Nifty formed a bearish candle on daily and weekly charts
The index took support at its 5-Days EMA for the 10th day
If Nifty corrects below 11500 levels further weakness could come in which could take it towards 11390
More clarity on index shall arise once Nifty registers a close above 11,700 levels.
A close above 11,700 could take the index towards 11,770 – 11,790.
Traders can look to create fresh short positions on October 29 if Nifty trades below 11490 levels for more than 30 minutes with intraday high as stop and look for a target of 11390, suggest experts.
Three levels: 11,490, 11,550, 11,700
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