Taking Stock | Market ends higher amid volatility; Nifty tops 17,300 led by metal, IT, realty

Indian benchmark indices ended higher for the second day in a row on October 6 with the Nifty finishing above 17,300 amid buying across sectors, barring FMCG and Pharma.

Despite mixed global cues, the equity market opened on a positive note and remained in positive territory for the most part of the session. However, last-hour selling dragged the indices to close near the day’s low.

At Close, the Sensex was up 156.63 points or 0.27% at 58,222.10, and the Nifty was up 57.50 points or 0.33% at 17,331.80.

“Markets exhibited resilience amidst optimism and continued its upward momentum from where it left off in the previous session. In a VUCA world, India stands out as a growth market given the incremental momentum witnessed amidst festivities even as we come to the end of Durga Puja. Metals, Media & IT lent good support even as we saw a bout of profit booking in the late afternoon session,” said S Ranganathan, Head of Research at LKP securities.

Stocks and sectors

JSW Steel, Hindalco Industries, Coal India, Tata Steel and Larsen and Toubro were among the top Nifty gainers. Bharti Airtel, HUL, HDFC, IndusInd Bank and Britannia Industries were the top losers.

Among sectors, Nifty Metal, and Information Technology indices were up 1.5-3.2 percent, while Auto, Bank, Energy and PSU Bank indices were up 0.5 percent each. On the other hand, FMCG and pharma ended marginally lower.

Also Read: Jefferies expects Nifty to retest 15,500 mark; here’s why

On the BSE – Metal, Realty, and Capital Goods indices gained 2-3 percent while Power and Information Technology indices rallied 1 percent each.

Broader indices outperformed the main indices with BSE midcap and smallcap indices rising 1 percent each.

A long build-up was seen in Persistent Systems, India Cements and Indiabulls Housing Finance and short build-up was seen in the Godrej Consumer Products, Lupin and Bharti Airtel.

On the BSE, more than 150 stocks touched their 52-week high on the BSE including Cipla, Cochin Shipyard, Everest Industries, IDFC, Kolte-Patil Developers, PC Jeweller, SJVN and Ujjivan Financial Services.

Among individual stocks, a volume spike of more than 200 percent was seen in Godrej Consumer Products, Bharat Forge and Persistent Systems.

Also Read: IT sector Q2 preview: Strong revenue growth likely, focus on management commentary

Outlook for October 7

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Weakness in European indices and SGX Nifty slipping into the red prompted investors to cut their bullish bets. But key domestic benchmarks still ended in the green thanks to traders betting big on IT, metals & realty stocks. However, the inflationary concerns worldwide and central banks hiking interest rates persistently has spooked markets and kept investors on tenterhooks on worries of a global slowdown.

On daily charts, the Nifty has formed a small bearish candle, which is indicating temporary weakness. However, the medium term sentiment is still bullish.

A fresh uptrend is possible only after the breakout of 17,425 level and above the same, the index could hit 17,500-17,550 levels. On the flip side, below 17,425 the index could slip till 17,200-17,150.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

Continuing with the positive momentum from the last session, the Nifty opened gap up on October 06. It attempted to stretch higher, however faced resistance near the 50% retracement of the entire September decline. The index stumbled near 17400-17500 & ended near the low point of the day. 20 DMA is also present in this zone, which is adding to the downside pressure.

Thus, the index looks set to move down to test its key hourly moving averages near 17200. Overall structure shows that the Nifty is poised to form a consolidation in the range of 17000-17500.

Disclaimer: The views and investment tips expressed by 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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