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Taking Stock: Sensex inches closer to 62,000, Nifty crosses 18,500 supported by metal, banks

On the BSE, the metal index rose 4.3 percent, while power and IT indices up 2 percent each. Some selling was seen in healthcare stocks

October 18, 2021 / 04:34 PM IST

The market ended in the green for the seventh consecutive session on October 18, hitting new highs helped by the banking and metal names.

During the day, the BSE Sensex and Nifty 50 touched fresh highs of 61,963.07 and 18,543.15 but couldn’t hold on to the gains.

At close, the Sensex was up 459.64 points, or 0.75 percent, at 61,765.59 and the Nifty was up 138.50 points, or 0.76 percent, at 18,477.

"Metals & PSU banks led the Sensex closer to the 62K mark today, even as we saw mixed trends in other sectoral indices with profit-taking observed in few over-owned names," said S Ranganathan, Head of Research at LKP securities.

Robust home sales in several cities in the September quarter point to a multiplier effect in several sectors.

Close

Broader markets remained buoyant with the small and midcap indices showing robust activity, he said. The BSE midcap and smallcap added nearly a percent each.

Hindalco Industries, Infosys, Tech Mahindra, JSW Steel and Tata Steel were among the major Nifty gainers. Losers included HCL Technologies, M&M, Asian Paints, Britannia Industries and Dr Reddy’s Laboratories.

Except Nifty pharma, all other sectoral indices ended in the green with Nifty energy, IT, metal and PSU bank adding 1.5-4 percent.

IndexPricesChangeChange%
Sensex58,649.681,016.03 +1.76%
Nifty 5017,469.75293.05 +1.71%
Nifty Bank37,284.70666.30 +1.82%
Nifty 50 17,469.75 293.05 (1.71%)
Wed, Dec 08, 2021
Biggest GainerPricesChangeChange%
Bajaj Finance7,361.50258.35 +3.64%
Biggest LoserPricesChangeChange%
HDFC Life686.40-8.00 -1.15%
Best SectorPricesChangeChange%
Nifty PSU Bank2722.5568.25 +2.57%
Worst SectorPricesChangeChange%
Nifty Energy23362.80190.30 +0.82%

Stocks and sectors

On the BSE, the metal index rose 4.3 percent, while power and IT indices were up 2 percent each. Some selling was seen in healthcare stocks.

Among individual stocks, a volume spike of more than 1,400 percent was seen in NALCO, PNB and SAIL.

Long buildup was seen in Dalmia Bharat, Escorts and PNB, while short buildup was seen in Amara Raja Batteries, L&T Infotech and HCL Technologies.

More than 350 stocks, including HDFC Bank, Cyient, PNB and IRCTC, hit a 52-week high on the BSE.

Market Outlook for October 19

Palak Kothari, Research Associate, Choice Broking

On the technical front, the Nifty has been trading with higher high and higher bottom formation, which suggest strength for the upside.

The daily momentum indicators RSI and MACD showed positive crossover on the daily chart, adding to bullishness.

The price has also moved above the upper “Bollinger Band” formation, which, too, augurs well for the index in the near term.

On an hourly chart, the index has been trading above 21 and 50 HMA, which adds bullish momentum to the index.

The index is trading in uncharted territory, with immediate support at 18,250. If it holds above 18,400, it can move to 18,600-18,700 in the near term.

Mohit Nigam, Head-PMS, Hem Securities

On the technical front, benchmark indices witnessed a continuous positive trend after sustaining well above 18,400 levels.

According to our technical analysis, this positive momentum might continue till 18,500 levels in the coming sessions. Immediate support for the Nifty is 18,300.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

We are of the view that due to the overbought formation, the bulls may take a cautious stance near the 18,600-18,650 resistance level. For day traders, 18,400 could be the trend decider level. Above the same, the uptrend formation will continue up to 18600-18650 levels.

On the flip side, if the index slips below 18,400, a technical sell-off up to 18,350-18,275 can’t be ruled out. The intraday texture shows markets in an overbought zone, hence level-based trading would be the ideal strategy for day traders.

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.
Rakesh Patil
first published: Oct 18, 2021 04:34 pm

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