The broader markets performed inline with main indices with Nifty midcap and smallcap indices rising 1 percent each.
Indian equity benchmarks staged a strong rebound on October 29, with the Nifty closing above the 22,900 mark amid broad-based buying across sectors, barring auto stocks. Amid mixed global cues, the market opened on a muted note but gained momentum as the session progressed, led by IT and banking stocks. Sentiment was supported after the US Federal Reserve kept its key policy rate unchanged in the 3.75–4% range, in line with market expectations.
At close, the Sensex was up 905.01 points or 1.24 percent at 74,151.04, and the Nifty was up 237.90 points or 1.05 percent at 22,936.75. The broader markets performed inline with main indices with Nifty midcap and smallcap indices rising 1 percent each. Biggest Nifty gainers were Adani Ports, Adani Enterprises, Kotak Mahindra Bank, Power Grid Corp, Eternal, while losers included Trent, Bajaj Auto, Maruti Suzuki, SBI Life Insurance and Hindalco Industries.
Except Auto, all other sectoral indices ended in the green with Nifty Bank, Energy, Consumer Durables, Media, Infra, IT, PSU Bank, Private Bank up 1 percent each, while Metal, Oil & Gas, Realty up more than 0.5 percent each. Among individual stocks, share price of Nilkamal surged 13% after Q2 net profit doubles to Rs 68 crore, Jupiter Wagons shares gained 5 percent on an order win worth Rs 1,140 crore, while Aeroflex Industries jumped 9 percent following strong Q2 earnings.
Hyundai Motor India surged 2.5 percent after CLSA maintained its ‘outperform’ rating with a target price of Rs 2,300 per share. JSW Energy rose 5.7 percent after CLSA maintained its ‘hold’ rating but cut its target price to Rs 522 per share. On the losing side, Hero MotoCorp shares declined 3 percent despite a 4.55 percent year-on-year increase in standalone Q2 profit. R R Kabel fell 3 percent despite better Q2 results, Hexaware Technologies declined 7 percent despite better earnings.
Vedanta Aluminium fell 3 percent after CLSA retained its ‘outperform’ rating, while Titagarh Rail Systems shed nearly 4 percent despite securing an additional Rs 1,716.90 crore order from the Ministry of Railways. Indian rupee also saw smart recovery from the intraday low of 95.37 to end nearly flat at 95.25 per dollar on Thursday, compared with Wednesday’s close of 95.23. More than 150 stocks touched 52-week low, including Dalmia Bharat, Tenneco Clean Air, DOMS Industries, Atul, Afcons Infra, SUMITOMO CHEMICAL INDIA, Yes Bank, Ramco Cements, Gujarat Energy, Cera Sanitary, Bharat Dynamics, Finolex Industries, JK Lakshmi Cement, Godrej Consumer, among others.
Click to View More On the other hand, more than 80 stocks touched 52-week high, including Acutaas Chemicals, Kotak Mahindra Bank, FSN E-Co Nykaa, Indian Hotels, Laurus Labs, Sona BLW, Piramal Pharma, among others. Click to View More Outlook for October 30 Shrikant Chouhan, Head Equity Research, Kotak Neo The benchmark indices bounced back sharply. The Nifty ended 238 points higher, while the Sensex was up by 905 points.
Among sectors, almost all the major sectoral indices traded in positive territory, but the FMCG and Realty indices outperformed, rallying over 2 percent. Technically, after a positive opening, the market successfully cleared the 22,800/73800 resistance mark, and the positive momentum intensified following the breakout. On the daily charts, it formed a long bullish candle, while on the intraday charts, it is holding an uptrend continuation formation, which supports a further uptrend from the current levels.
We are of the view that 22,800/73800 and 22,750/73500 would now act as key support zones for trend-following traders. As long as the market is trading above these levels, the bullish sentiment is likely to continue. On the higher side, the rally could continue up to 23,100–23,175/74500-74800. However, below 22,750/73500, the sentiment could change. Below this level, traders may prefer to exit their long trading positions.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities After showing consolidation movement with high volatility in the last couple of sessions, Nifty witnessed an excellent breakout of 22800 levels on Thursday and closed the day with hefty gains. A long bull candle was formed on the daily chart which indicates an emergence of sharp buying that surpassed the crucial hurdle around 22800 levels.
This is positive indication. After a series of bearish pattern like lower tops and bottoms, the recent market action signals a confirmation of new higher bottom around 22400 levels. This could possibly open bullish chart formations like higher highs and lows ahead. The short-term trend of Nifty continues to be positive. One may expect Nifty to advance towards the next resistance of 23200 in the short term. Any dips could be bought at the immediate support of 22800-22750 as per the concept of change in polarity.
