Except FMCG, media, consumer durables, all other sectoral indices ended in the green with Pharma, Metal, Oil & Gas up 1-2 percent, while Infra, IT, Private Bank, Energy up 0.5 percent each.
Indian equity markets ended higher on October 26, snapping a four-day losing streak, with the Nifty closing above 22,700 led by Pharma, Metal, Oil & Gas stocks. Amid weak global cues, the market began the week on a negative note but staged a sharp recovery in early trade. However, the benchmarks struggled to sustain the gains and traded in a narrow range through most of the session as investors remained cautious amid elevated crude oil prices, geopolitical uncertainty and ahead of the US Federal Reserve’s policy decision later this week.
Buying in the final hour helped the indices extend their recovery and close at day's highs. At close, the Sensex was up 482.92 points or 0.66 percent at 73,606.75, and the Nifty was up 153.20 points or 0.68 percent at 22,753.20. The broader markets outperformed sharply, with the Nifty Midcap index adding 1.2% and Smallcap index gaining 1.4%. Biggest Nifty gainers were Dr Reddy's Labs, BSE Limited, JSW Steel, Max Healthcare, Eternal, while losers included Shriram Finance, Tata Consumer, HDFC Life, Bajaj Finance and HDFC Bank.
Except FMCG, media, consumer durables, all other sectoral indices ended in the green with Pharma, Metal, Oil & Gas up 1-2 percent, while Infra, IT, Private Bank, Energy up 0.5 percent each. Among individual stocks, Jyoti Structures surged 11 percent after securing an order from Power Grid Corporation of India. SBI Funds Management fell 2.5 percent following a decline in Q2 profit, while Bank of India shed 3.5 percent despite reporting better quarterly results.
Bharat Coking Coal gained 5 percent after turning profitable in Q2. DCB Bank declined 3 percent despite reporting improved earnings, while Apollo Micro Systems jumped 10 percent on strong Q2 results. Among other stocks, Ather Energy surged 13.7 percent after swinging to profit in Q2, while KEC International gained over 2 percent after securing turnkey orders worth Rs 2,872 crore. Shriram Finance fell 5 percent after CLSA maintained its 'outperform' rating but cut the target price to Rs 1,100.
Kotak Mahindra Bank rose 2 percent after reporting a 29.5 percent year-on-year jump in Q2 standalone profit, while Dr Reddy’s Laboratories gained 6 percent despite a 36 percent year-on-year decline in Q2 consolidated profit. The Indian rupee ended lower for the third consecutive session on Monday, falling 25 paise at 95.19 per dollar versus Friday's close of 94.94. More than 500 stocks touched 52-week low, including Atul, Bank of India, UTI AMC, Tata Consumer Products, CreditAccess Grameen, RailTel, Cholamandalam Financial Holdings, Sammaan Capital, Afcons Infrastructure, Sumitomo Chemical India, Linde India, NSDL, L&T Finance, Container Corporation of India, United Breweries, NCC, Voltas, Inox Wind, Aptus Value Housing Finance and Canara Bank., among others.
Click to View More Outlook for October 27 Vatsal Bhuva, Technical Analyst at LKP Securities The Nifty index witnessed a strong rebound after finding support near Friday’s low, highlighting the significance of the 22,300–22,400 zone. The monthly 50-SMA, currently placed near 22,330, has emerged as a crucial support level despite the prevailing downtrend. Following the CAS session, the index also reclaimed its 20-DMA on the daily chart, indicating near-term strength.
A breakout above 22,800 could trigger an upward move towards 23,000, which remains a strong resistance. However, as the broader trend remains weak, a cautious approach should be maintained, with 22,400 acting as a crucial support zone. Shrikant Chouhan, Head Equity Research, Kotak Neo The benchmark indices witnessed a promising pullback rally. The Nifty ended 153 points higher, while the Sensex was up by 483 points.
Among sectors, almost all the major sectoral indices traded in positive territory, but the Tourism, Healthcare and Metal indices outperformed, rallying over 2 percent. Technically, after an intraday dip, the market recovered sharply. From the day's lowest point, the market rallied over 350/1000 points. On the daily charts, it formed a bullish candle, and on the intraday charts, it formed a promising reversal formation, which is largely positive.
For traders, 22600/73000 and 22500/72800 would now act as key support zones. As long as the market is trading above the same, the pullback formation is likely to continue. On the higher side, 22800/73800 would act as an immediate resistance zone for the bulls. A successful breakout of 22800/73800 could push the market up to 23000/74500. However, below 22600/73000, the uptrend would become vulnerable. Below the same, traders may prefer to exit their long trading positions.
