The S&P BSE Sensex which hit a fresh record high of 40,392.22 on October 31 failed to hold onto the momentum towards the close of the trade as investors booked profits at higher levels.
The Nifty50 also failed to hold on to 11,900 levels which it reclaimed for the first time since July 5 on an intraday basis.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 77 points to close at 40,129 while the Nifty50 rose 33 points to close at 11,877.
For the month of October, Nifty rose 3.5 percent while in the October series the index was up 2.6 percent.
Stable global cues thanks to a rate cut by the US Fed, better than expected results from India Inc., festive cheer, and buying by foreign institutional investors lifted sentiment on D-Street.
In terms of sectors, much of the action was seen in IT, Public Sector, and Realty stocks while profit booking was seen in metals, and energy space.
As Sensex hit a record high, there are more than 80 stocks on the BSE which hit a fresh 52-week high. These include Nestle India, Bajaj Auto, Pfizer, info Edge, HUL, Avenue Supermarts, Bata India, NIIT Tech, and RIL.
The next big question in front of investors is – will the rally sustain?
Well, given the fact it was expiry some volatility was expected. Indian market witnessed some selling pressure at higher levels but still managed to close in the green. The market breadth favours advances; advance-decline ratio stood at 2:1, which is a positive sign.
The uptrend remains intact as long as the Nifty50 continues to hold above 11,800 levels. And, investors should stay put with their positions. The last hour volatility could be due to expiry.
“Market is slowly marching towards the all-time high supported by quarter earnings and govt’s measures to attract equity investments. Additionally, strong economic factors like favourable inflation, interest rate, and benign oil prices will support the market sentiment in the long term,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.
“Strengthening rupee along with increasing FIIs inflow is indicating a change in FIIs’ negative stance towards emerging markets,” he said.
The market breadth has been the focal point as mid and smallcaps joined the party on Thursday which is a positive sign. The support for the index is placed at 11,600 levels.
“We have held our bullish stance even on down phase and have recommended going long on declines which have worked well. We continue with our bullish stance and believe the index is headed for new highs soon. 11,600 is the immediate downside support,” Manav Chopra, CMT, Head Research – Equity, Indiabulls Ventures Ltd.
“Banknifty though has been relatively underperforming, but we continue our positive stance on the index. SBI saw a sharp up move in the trade. Banknifty has nearly tested our recommended zone of 30,800. Above 30,800 it will be a continuation of a positive trend for the banknifty. 29,700 is the immediate support on the downside and we recommend going long towards the support zone,” he said.
Stocks & Sectors:
Sectorally, the S&P BSE IT index rose 1.9 percent, followed by telecom, and Realty indices. On the losing front, metals and energy index witnessed profit-taking.
The broader markets – BSE Midcap and Smallcap index outperformed the benchmark and closed 1.1 percent and 0.9 percent higher respectively.
Top Sensex gainers: Infosys, SBI, and YES Bank
Top Sensex losers: M&M, ICICI Bank, and Tata Steel
Stocks in news:
Shares of State Bank of India climbed 7 percent on October 31 after brokerage houses had retained their bullish stance on the stock as the management expects slippages to moderate from the next financial year 2020-2021.
Shares of United Bank of India gained further ground on October 31 after the company reported a profit in the quarter ended September 2019. The stock rose 13%.
Shares of Dhanlaxmi Bank rose more than 12 percent intraday on October 31 after the company posted stellar numbers for the quarter ended September 2019.
Shares of Yes Bank rallied 24 percent on October 31 after the private lender received a binding offer of $1.2 billion from a global investor.
Public sector lender Syndicate Bank reported a profit of Rs 251 crore for the July-September quarter against a loss of Rs 1,542.5 crore in the same period last year. The stock rose 6 percent.
Shares of Quess Corp rose 9.5 percent after the company posted strong earnings in the quarter ended September. Its Q2 FY20 net profit increased 15.5 percent quarter-on-quarter and five percent year-on-year to Rs 65.03 crore.
Nifty rose for the fifth consecutive day in a row
It registered a Doji kind of candle on the daily charts
In the next trading session if index trades below 11,855 levels for 30 minutes then it can attract intraday selling whereas weakness will get confirmed on a close below 11,784 levels which shall accentuate selling pressure in the short term, suggest experts.
Any rally beyond 11,950 levels, without correction, shall be short-lived. Hence, it is advisable traders to book profits in long positions either on rally beyond 11,950 or if it trades below 11,855 levels, experts said.
Three levels: 11,855, 11,945, 12,103