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Updated on: Monday, November 01, 2021, 05:19 PM IST

Diwali sparkle on D-Street as Sensex, Nifty rebound sharply to reverse 3-session losses

The benchmark indices ended higher after three red days with Nifty 50 gaining (+) 1.46 percent and Sensex gaining (+) 1.4 percent today |

The benchmark indices ended higher after three red days with Nifty 50 gaining (+) 1.46 percent and Sensex gaining (+) 1.4 percent today |

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The benchmark indices ended higher after three red days with Nifty 50 gaining (+) 1.46 percent and Sensex gaining (+) 1.4 percent today. Strong buying was seen in IT, Metal and Realty stocks. All the major sectoral indices ended in green today

At close, the Sensex was up 831.53 points or 1.40 percent at 60,138.46. The Nifty was up 258 points or 1.46 percent at 17,929.70. About 2099 shares have advanced, 1129 shares declined, and 186 shares are unchanged.

All sectoral indices ended in the green with IT, Infrastructure, metals and realty up 1-3 percent each. Stocks like Indus Ind Bank, Hindalco, Coal India, HCL Tech were top gainers. UPL, M&M, Bajaj Finserv and Nestle were prime laggards.

Mohit Nigam, Head-PMS, Hem Securities said, "The GST collection in October came at Rs 1.3 lakh crore as compared to Rs 1.17 lakh crore in September. Auto sales for this month seem not that encouraging as it should be in the festive season majorly due to supply constraints. UPL (-2.52 percent) and M&M (-1.57 percent) were among the top losers in Nifty 50 today.

"Markets witnessed swift recovery from the support zone of 17,600 levels and once it closes above the immediate resistance of 18,000, we may witness 18,400-18,500 levels in the near-term once again. Overall, we are positive on Indian markets and believe that investors should start fresh buying in quality stocks once Nifty 50 sustains above 18,000 levels for 2-3 sessions."

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "Monday's (November 1) rally came as a major relief as bears had been gaining strength over the past few sessions. The recovery was also aided by favourable global market sentiment, which triggered frenzied buying here. Technically, the index has completed one leg of a pullback rally and now 18,000 and 18,050 would act as a crucial resistance level. The index has formed a strong bullish candle but the key concern is it is still trading below 20 day SMA.

"We are of the view that the intraday texture of the market is bullish but traders may prefer to take caution stance between 17,975-18,020 levels. As long as the index is trading above the level of 17,800, the uptrend texture is intact. For bulls, the 17,850-17,800 level could be the strong support zone and below the same the uptrend would be vulnerable," Chouhan added.

Palak Kothari, Research Associate, Choice Broking said, "After three consecutive losing streaks, the Nifty index finally managed to close on a green note at 17,929.65 levels with a gain of 258 points. Bank Nifty closed the session at 39,763.75 levels with a gain of 648 points.

"On the technical front, the Index has taken support from the lower Bollinger band and bounced from there, which points out strength for the upside. On the four-hour chart, the Index has confirmed a Bullish Harami kind of candlestick pattern which suggests bulls are active again. Furthermore, the index has given closing above 21&9 HMA, which suggests northward direction in the counter. Hourly Momentum indicator MACD and Stochastic is trading with a positive crossover which suggests upside momentum in the upcoming session. At present, the Nifty has immediate support at 17580 while resistance comes at 18100 levels," Kothari added.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "Monday's sharp upside bounce could be an indication of strong comeback of bulls from the lows. But, having formed a negative chart pattern recently, we expect this pull back to halt around 18,100-18,200 levels before showing another round of weakness from the highs. If the hurdle of 18,200 gets broken decisively on the upside, then the present negative chart pattern could be nullified and the market could continue with further upside."

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Published on: Monday, November 01, 2021, 04:01 PM IST
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