Taking Stock |Sensex up 114 points, Nifty above 18,100 amid volatility; metal, PSU banks gain

The Indian market closed in the green after a volatile session on November 4, supported by metal and PSU banking names. The Sensex ended 113.95 points, or 0.19 percent, higher at 60,950.36, and the Nifty was up 64.50 points, or 0.36 percent, at 18,117.20.

The market opened flat following mixed global cues and soon slipped into negative territory but buying in metal and PSU banks helped the indices close higher.

"The Bank of England in its policy announcement mirrored the Fed’s view, dashing hopes for a near-term policy softening. Though a late rebound was seen in the domestic market, it was largely in the red zone as the pharma and IT sell-off continued due to concerns about the impending recession," said Vinod Nair, Head of Research at Geojit Financial Services.

The dollar and the US treasury yield surged following the hawkish remarks from global central banks, even as foreign institutional investors (FIIs) continued their domestic support, he added.

Stocks and sectors

Adani Enterprises, Hindalco Industries, Bajaj Finserv, Adani Ports and JSW Steel were among the top Nifty gainers. Hero MotoCorp, Dr Reddy’s Laboratories, BPCL, Cipla and HDFC Life were among the biggest losers.

Among sectors, the Nifty Metal index rose 4 percent and the PSU bank index gained 1 percent. The Pharma index closed a percent lower from the previous day.

The BSE midcap index ended on a flat note, while the smallcap index was up 0.4 percent.

On the BSE, the metal index added nearly 3 percent and capital goods and oil & gas indices up 0.5 percent each. Selling was seen in the FMCG, healthcare and information technology stocks.

Among individual stocks, a volume spike of more than 700 percent was seen in Amara Raja Batteries, Exide Industries and Aditya Birla Fashion & Retail.

A long build-up was seen in Amara Raja Batteries, Adani Enterprises and Vedanta, while a short build-up was seen in Aditya Birla Fashion & Retail, Coromandel International and Hindustan Petroleum Corporation.

Rites, Raymond, South Indian Bank, Vimta Labs, Union Bank Of India, RailTel Corporation of India, Lemon Tree Hotels, Kalpataru Power Transmission were among the stocks that touched a 52-week high on the BSE.

Outlook for November 7

Ajit Mishra, VP-Research, Religare Broking

Markets extended consolidation for yet another session and gained nearly half a percent. The indices have been maintaining a positive tone amid consolidation, which clearly shows buying interest.

We reiterate our view to stick with the sectors and stocks which are participating in the move instead of laggards. For cues, the performance of global indices and earnings will remain in focus.

Amol Athawale, Deputy Vice President, Technical Research, Kotak Securities

Recovery in European markets and gains in other Asian peers helped Indian markets rebound and end higher. While the Indian economy is not completely insulated from the global challenges, the recent strong economic readings like robust GST collections and an uptick in IIP numbers indicate that things could turn for the better in the near to medium term.

Globally, traders are hoping that the pace of rate hikes by the major economies would soften, which will fuel fresh optimism for equity markets.

A bullish candle on weekly charts and uptrend continuation formation are positive for the market.

As long as the Nifty trades above the 10-day simple moving average (SMA)—17,900—the uptrend wave is likely to carry the index to 18,300-185,00. If the index closes below the 10-day SMA, it can slip to 17,800-17,700.

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