BREAKING NEWS

Advertisement

Business

Updated on: Wednesday, October 13, 2021, 04:08 PM IST

Markets vault to fresh record highs amid mixed Asian cues; IT stocks rebound after recent weakness

The stock markets witnessed a stellar rally as both Sensex and Nifty scaled to fresh record highs, /Representational image | ANI Photo

The stock markets witnessed a stellar rally as both Sensex and Nifty scaled to fresh record highs, /Representational image | ANI Photo

Advertisement

The stock markets witnessed a stellar rally as both Sensex and Nifty scaled to fresh record highs, largely dominated by Auto and IT stocks. Benchmark Nifty maintained a strong breakout continuation formation which clearly suggests further uptrend from current levels.

The Sensex was up 452.74 points or 0.75 percent at 60,737.05, and the Nifty was up 169.80 points or 0.94 percent at 18,161.80. About 1602 shares have advanced, 1504 shares declined, and 118 shares are unchanged.

Tata Motors, M&M, Tata Consumer Products, Power Grid Corp and ITC were among the major gainers on the Nifty. Maruti Suzuki, ONGC, Coal India, SBI Life Insurance and HUL were among the big losers.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty made a new lifetime high of 18,197 today.It closed at 18,160, up by 170 points since October 13 close. Volumes in Nifty were higher than its average which is a good sign for longs. Nifty has a strong support in the 18,050-18,110 range. Traders can use buy on dips strategy with strict stoploss for 18,250-18,300 as targets".

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "We are of the view that the short-term chart formation is still in to the long side, but due to an overstretched intraday rally the bulls may take a caution stance between 18,250-18,275 levels. For day traders, 18100 would act as a key support level. Above the same, the uptrend wave will continue up to 18,200-18,275 levels. On the other hand, dismissal of 18,100 could possibly trigger a correction wave up to 18,040-17,980 levels."

Palak Kothari, Research Associate, Choice Broking, said, "On the back of SGX Nifty, the Index opened on a positive note and showed an upside rally and made a new life-time high at 18,197.80 level and closed the session at 18,161.75 level with a gain of 169.80 levels. While Bank nifty closed the session at 38,635.75 levels with a gain of 114.25 points. Amongst the NIFTY 50 index, 34 stocks posted gains. On the sectoral font, the auto index is up over 4 percent and metal, energy, power indices up 1-2 percent.

"On the technical front, the Index has given a breakout of the rising trendline as well as given a close above the same, which points out buyers are active. A daily momentum indicator Stochastic and MACD both have shown positive crossover on the daily chart which adds more bullishness to the price. The ADX indicator is reading at 38 with +DI trading above – DI, which points out strength in the counter. Furthermore, the price has also moved above the upper “Bollinger Band” formation, which suggests the bullish movement will continue further in the near term. At present, the Index has been trading at uncharted territory with immediate support at 18,000 level while sustained above the same can show 18,300-18,400 levels."

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, said, "The Nifty remains in a medium-term uptrend for 18,600-18,800. For the October series momentum remains strong above 17,600. Cement stocks provide value entry while Private banking and metals are expected to gain momentum."

Mohit Nigam, Head - PMS, Hem Securities, said, "The Indian benchmark Indices rose for the fifth consecutive session and closed at record high levels today. Tata Motors zoomed 20 percent today and was the top gainer in Nifty 50 today-- this surge was majorly due to investment of Rs 7,500 crore by the TPG group in Tata Motor’s EV subsidiary. Almost all the Tata Group Companies were on a roll today. Investors are expecting earnings today from big IT names such as Wipro and Infosys. These results will guide whether the bull run in the IT sector would continue or we may witness some profit booking in this space.

"On the technical front, Nifty 50 is able to sustain 18,000 levels and we may witness markets to touch 18,300 levels in the coming session. the 17,800 level is an immediate support in Nifty 50."

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Wednesday, October 13, 2021, 03:55 PM IST
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement