Key Highlights:
- Sensex closed at 80,248.08, up 445.29 points or 0.59%.
- Nifty ended at 24,276, up 144.90 points or 0.60%.
- Sectoral Performance:
- Realty, Pharma, Metal, Auto, and Media sectors gained over 1%.
- Broader indices outperformed, with BSE Midcap and Smallcap indices rising nearly 1% each.
- PSU Banks and FMCG underperformed.
Index Insights:
Nifty:
- Resistance: Immediate resistance is at 24,350, a key neckline of the Inverted Head & Shoulder formation. A breakout above this level could push the index towards 24,770.
- Support: Crucial support levels are at 24,100 and 24,000.
- Momentum: The bullish harami pattern and a green candle on the daily chart indicate sustained positive momentum. The RSI has also broken out of consolidation and is in a bullish crossover.
Bank Nifty:
- Recovered 500 points from intraday lows to close 53 points higher.
- Resistance: Expected upward momentum towards 52,800–53,000.
- Support: Short-term critical levels are at 51,700–51,500.
Sectoral Performance:
- Top Gainers: Realty, Pharma, and Metal sectors led the rally, with heavyweights from these sectors providing significant support.
- Mixed Performance: Auto and IT sectors remained resilient, while PSU Banks and FMCG witnessed subdued activity.
- Midcap and Smallcap: Continued their strong performance, outpacing the benchmarks and contributing to the market breadth.
Stock Movement:
- Top Gainers:
- UltraTech Cement
- Apollo Hospitals
- Grasim Industries
- JSW Steel
- Shriram Finance
- Top Losers:
- HDFC Life
- Cipla
- NTPC
- SBI Life Insurance
- L&T
Market Sentiment:
- Positive Indicators:
- Recovery in October’s core sector output.
- Hopes of supportive RBI measures ahead of its policy meeting.
- Strong performance across Realty and Metal sectors.
- Cautionary Notes:
- Disappointing GDP data for Q2 weighed on sentiment initially.
- Anticipation of a cut in GDP forecast and cautious stance on rate cuts due to unfavorable inflation dynamics.
Technical Outlook:
- Nifty Outlook:
- Closing above the 40-day moving average of 24,300 signals potential for continued uptrend.
- Immediate hurdle at 24,420; surpassing this could trigger a rally towards 24,770.
- Bank Nifty Outlook:
- Momentum indicators align positively, with room for gains towards 52,800 and 53,000.
Conclusion:
Markets started the week on a strong footing, defying weak macroeconomic signals with a recovery driven by select heavyweights. The broad-based rally, led by Realty and Pharma, indicates resilience and potential for further gains. However, the upcoming RBI policy announcement and macroeconomic uncertainties may keep investor sentiment cautious. A selective approach with a focus on fundamentally strong stocks is advised.
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