The benchmark indices closed higher on weekly expiry day (October 7). The index opened on a gap-up note and showed strength throughout the day and set a high at 17857 levels. At close, the Sensex was up 488.10 points or 0.82 percent at 59,677.83. The broader Nifty was up 144.30 points or 0.82 percent at 17,790.30. About 2096 shares have advanced, 1023 shares declined, and 119 shares are unchanged.
Nifty realty and auto indices rose 4-6 percent. BSE midcap and smallcap indices added over 1 percent each.
Tata Motors, Titan Company, M&M, Maruti Suzuki and Eicher Motors were among the major gainers on the Nifty. ONGC, Dr Reddy's Labs, Coal India, Britannia and HDFC were among the big gainers.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "The Nifty closed positive at 17,790, up by 145 points. Since the last few trading sessions, Nifty has been facing strong resistance in 17,800-17,900 range. It is important for Nifty to close above 17,950 with higher than average volumes to resume its upward journey. Fresh long should be initiated only on closing above 17,950 or near its support range of 17,580-17,620 with strict stop loss."
Palak Kothari, Research Associate, Choice Broking, said, "On the technical front, the Index has formed a Doji kind of candlestick pattern which points out confusion between a buyer and a seller. Moreover, the Index has been trading above 21 DMA, which points out strength in the counter. Momentum indicator stochastic is trading with positive crossover, which adds strength to the counter.
"On an hourly chart, the Index has been trading with the support of the middle band of the Bollinger band formation, sustain above the same can show further upside movement. At present, the Index has immediate support at 17,500 level while resistance comes at 17,900 levels," said Kothari.
Deepak Jasani, Head-Retail Research, HDFC Securities, said, "Nifty has formed a lower top on a short-term basis. It has also formed an engulfing top on daily charts which has bearish connotations. The weak advance decline ratio also suggests wide spread profit taking. Even if the global markets show some recovery, Nifty could after a small recovery again run into profit taking. Investors may take a part of their profits and raise cash, while traders can keep strict stoplosses and reduce their positions till the sentiment improves."
Mohit Nigam, Head - PMS, Hem Securities, said, "Sectors like Nifty Auto and Nifty Realty outperformed the market today by giving positive moves of 4.39 percent and 6.16 percent respectively. Except for the power and energy sector all other sectors ended up in green today. Tata Motors shares rallied 12.04 percent today after Morgan Stanley upgraded the stock's rating. With the commencem of this festive season we believe strong buying can be seen in auto, textile and realty stocks. IT earnings are starting from tomorrow and the market seems to be quite optimistic on it.
On technical front, Nifty can face resistance at 17,915 levels and a good support can be seen at 17,688 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "Technically, a strong bearish candle followed by inside body candle formation clearly suggests indecisiveness between the bulls and the bears. The market is consistently taking support near 20 day SMA but at the same time witnessed profit booking near 17,900-level. For the day traders, 17,720 would be the trend decider level."
