Updated on: Monday, October 18, 2021, 04:32 PM IST

Markets extend rally for 7th straight session; IT, metals, power propel key benchmark indices to fresh highs

At close, the Sensex was up 459.64 points or 0.75 percent at 61,765.59, and the Nifty was up 138.50 points or 0.76 percent at 18,477.  |

At close, the Sensex was up 459.64 points or 0.75 percent at 61,765.59, and the Nifty was up 138.50 points or 0.76 percent at 18,477. |


After a long weekend, the Index opened on a gap-up note and made a new life-time high at 18543.15 levels and showed strength through the session and closed the session at 18477.05 level with a gain of 138.50points. Bank nifty also showed strength and closed the session at 39684.80 levels with a gain of 343.90 points.

At close, the Sensex was up 459.64 points or 0.75 percent at 61,765.59, and the Nifty was up 138.50 points or 0.76 percent at 18,477. About 1677 shares have advanced, 1563 shares declined, and 127 shares are unchanged.

Hindalco Industries, Infosys, Tech Mahindra, JSW Steel and Tata Steel were among major gainers on the Nifty. HCL Technologies, M&M, Asian Paints, Britannia Industries and Dr Reddy’s Laboratories, were among major losers.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "The Nifty has been making new Highs since the last few trading sessions. Today (October 18) it closed at 18,475 , up by 135 points. There is divergence seen between price and volume, therefore a correction may be seen in Nifty in the next few trading sessions. However, Nifty is in a strong bullish trend and any correction can be used as an opportunity to enter long positions with strict stoploss. Nifty has support at 18,350 and 18,170 levels."

Mohit Nigam, Head - PMS, Hem Securities, said, "The Indian benchmark indices rose for the seventh consecutive session and closed at record high levels today. Strong buying is seen in Metal, Bank and IT stocks while some profit booking is witnessed in media stocks. Today (October 18), most of the banking stocks had a good run after strong numbers posted by HDFC Bank. Tata Power surged 15 percent and Borosil Renewables 5 percent and continued their upward trajectory due to recent traction in the renewable industry. We may see some traction in the realty stocks as demand for residences picked up post the second wave of the coronavirus pandemic

"On the technical front, benchmark indices witnessed continuous positive trend after sustaining well above 18,400 levels. According to our technical analysis this positive momentum might continue till 18,500 levels in coming sessions. Immediate support for Nifty 50 is 18,300."

Palak Kothari, Research Associate, Choice Broking, said, "On the sectoral front, the metal index is up 4 percent, while power, oil & gas, IT, energy and PSU Bank indices are up 1-2 percent each. While Nifty Pharma, Media & Consumption ended in red. Stocks like Hindalco, Infosys, JSW Steel, and ITC were the top gainers. HCL Tech, M&M, Bajaj Auto, Asian Paints, were the prime laggards.

"On the technical front, the Index has been trading with higher high and higher bottom formation which suggest strength for the upside. A daily momentum indicator RSI and MACD both have shown positive crossover on the daily chart which adds more bullishness to the price. Furthermore, the price has also moved above the upper “Bollinger Band” formation, which suggests the bullish movement will continue further in the near term. On an hourly chart, the Index has been trading above 21&50 HMA, which adds bullish momentum to the index. At present, the Index has been trading at uncharted territory with immediate support at 18,250 level while sustained above 18400 levels can show 18,600-18,700 levels in near-term."

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd,said, "Investors seem to be cheering the strong earnings numbers from technology giants as an absence of any negative news has been markets to new highs. After a strong rally on daily charts last week, the index has formed a Doji Star kind of formation which suggests a temporary overbought situation. However, the short-term trend is still positive. We are of the view that due to overbought formation the bulls may take a caution stance near the 18,600-18,650 resistance level. For day traders, 18,400 could be the trend decider level. Above the same, the uptrend formation will continue up to 18,600-18,650 levels. On the flip side, below 18,400, a technical sell-off up to 18,350-18,275 is not ruled out. The intraday texture shows markets in an overbought zone, hence level-based trading would be the ideal strategy for day traders."

Deepak Jasani, Head-Retail Research, HDFC Securities said, "Asian markets were largely down following Inflation worries due to surging energy prices and slowing growth in China. European markets headed lower on Monday morning in London, compounding jitters following GDP data in China that missed expectations. Nifty rose on very high volumes. Advance decline ratio closed in the positive towards the day end but was lower than the morning levels. Nifty is now overbought on daily charts. Tuesday is the eighth day in this uptrend and eight is also a fibonacci number that could denote a change in trend for the near term. 18600 on the Nifty is anyway a resistance while 18350 is a support."

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Published on: Monday, October 18, 2021, 03:51 PM IST