The domestic equity market on November 7 reacted positively to the solid global cues as the benchmark indices settled 0.5 percent higher. Strong FII buying too bolstered investor sentiment. A sharp fall in the Indian rupee against the US Dollar encouraged the FIIs to continue their buying for the second session in a row which can sustain ahead if the rupee weakens further.
At close, the 30-pack BSE was 235 points or 0.4 percent up at 61,185 while the broader Nifty was up 86 points or 0.47 percent to close at 18,203.
Better-than-expected results by banking majors Bank of Baroda and State Bank of India aided the sentiment. That apart, global markets displayed strength following a strong closing by the US markets on Friday.
Nifty witnessed a gap-up start but immediately ran into profit-taking and made an intra-day low in the afternoon session. However, it staged a smart recovery to close near the day’s high.
“The domestic market battled to find a clear direction but it ended up making gains as losses in pharmaceutical companies were offset by buying in PSU banks, auto, and metal equities”, said Vinod Nair, Head of Research at Geojit Financial Services.
PSU banks took the lead in the rally as major sector players announced solid results. Expectedly, the PSU Bank Index was the top gainer as it surged 4.46 percent today.
Fall in oil prices as China disputed rumours of lifting COVID restrictions and stronger US jobs data showed that the US economy is expanding, which helped the market.
However, “investors will await US inflation data for market direction as there aren't many domestic clues left as the corporate earnings season is drawing to close with a negative bias", added Nair.
Among other sectors, the metal index closed with a gain of 1.6 percent while the Auto edged up 1.3 percent. Nifty Oil & Gas and Realty indices gained nearly 1 percent each.
Barring Pharma, Healthcare and Consumer Durables, all other sectoral indices closed in green today. Pharm lost 1.4 percent and healthcare was down 1.3 percent.
Britannia, SBI, Adani Enterprises, BPCL and Eicher Motors were the top Nifty gainers today with Britannia surging as much as ~9 percent while others gained between 2.4 to 3.4 percent each.
Divi's Labs, Asian Paints, Cipla, Bajaj Finserv and Adani Ports were the top losers on the Nifty. Divi's Labs tanked nearly 9 percent after its dismal quarterly showing. The other stocks were down between 1.2 to 2.5 percent each.
Stocks & sectors
On the BSE, the BSE PSU index was the top gainer as it gained 1.95 percent today while BSE Auto, Oil & gas, Realty, Metals and Energy indices rose over one percent each.
BSE Healthcare was the top loser, slipping one percent today while Consumer Durables lost 0.4 percent and BSE Services was down 0.25 percent.
The broader indices too participated in the rally with the BSE Midcap gaining 0.69 percent and BSE Smallcap settling 0.64 percent higher.
A long build-up could be seen at the counters of Bank of Baroda, Britannia Industries and Amraraja Batteries while a short build-up was witnessed in Divi's Labs, Marico and Vedanta.
Among specific stocks, a volume spike of more than 2,500 percent was seen in PNB, while the volumes in Divi's Labs and Britannia surged more than 800 and 700 percent each.
Outlook for November 9
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd
Although markets witnessed a roller-coaster ride in the intra-day session, key indices maintained their upward bias on the back of firm global cues. Another positive factor has been the sharp fall in the rupee level against the dollar, which, if continues, could further bolster foreign institutional investors buying into local shares.
Technically, the Nifty is holding a higher bottom formation but at the same time, it is consistently taking resistance near 18,260 levels. In addition, on daily charts, the index has formed a Doji candlestick pattern which is indicating indecisiveness between the bulls and bears. For trend-following traders, 18,050 and 18,000 would act as key support levels. If the index trades above 18,050, it could hit 18,300-18,350 levels. On the flip side, below 18,050, Nifty could retest the level of 17,950-17,900.
Rupak De, Senior Technical Analyst at LKP Securities
The benchmark Nifty remained volatile during the session before closing with a gain. On the daily chart, the index has remained above the previous swing high, suggesting an ongoing uptrend. The momentum indicator RSI is in the positive crossover. Over the short term, the trend may remain bullish, with a potential to reach 18,300/18,600. On the lower end, support is placed at 18,000.
Disclaimer: The views and investment tips of investment 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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