After the fifth consecutive day of strong selling pressure this week, the Indian stock market ended the weekend on Friday with a bullish move after an initial decline with heavy volatility. Global markets were softening today amid China uncertainty. The Sensex lost another 600 points to the 81000 level in a five-day straight decline and investors lost an estimated Rs.6.99 lakh crore capital in the five-day straight correction, although today's lows were recorded as a rally at the end.
The Sensex rose 218 points to close at 81,224 points, while the Nifty futures index closed at 24,949 points with a rise of 105 points. While the Bank Nifty future index closed at 52310 points with a jump of 818 points. Consumer durables, capital goods, healthcare-pharmaceuticals, metal-mining, IT-software services, oil-gas frontline stocks were bought.
Shares of FMCG companies traded profitably today on the back of results including Nestlé India. Banking stocks were broadly bullish today. Shares were sold off despite Axis Bank's quarterly profit rising 18%, while Reliance Industries rallied after announcing a record October 28, one-per-share bonus.
Top gainers in today's trade include IndiGo, JK Cements, Larsen, Torrent Pharma, Axis Bank, Wipro, Mahindra & Mahindra, Reliance Industries, ACC, Lupine, Muthoot Finance, Sun Pharma, Voltas, Bata India, Adani Ports, Kotak Mahindra Bank, Tech Mahindra , stocks like Havells, Glenmark Pharma, Bharti Airtel rose. Today's list of top losers includes HDFC AMC, Adani Enter., Devise Lab, Hindustan Unilever, Infosys, Cipla, HCL Technology, Sun TV Network, Mahanagar Gas.
Of the total 4043 scrips traded on BSE, the number of decliners was 2014 and the number of gainers was 1923, 106 scrips were unchanged. While in 03 stocks there was an upper circuit of only buyer bullishness in 07 stocks against the lower circuit of depression of only sellers.
Nifty Future Technical Levels… NIFTY FUTURE CLOSE :- ( 24949 ) :- The next move is likely to see Nifty future touch the crucial level of 25008 points to 25088 points, 25108 points, 25008 points to 25088 points, 25108 points in terms of trading first of 24676 points and 24606 points. …!!
Bank Nifty Future Technical Level… Bank Nifty Future Close :- ( 52310 ) :- The next swing is likely to see the Bank Nifty Future touch the crucial level of 52008 points first and 51808 points from 52474 points to 52636 points, the all-important level of 52808 points.Caution around 51808 points Creating a position…!! Specific technical level regarding future stock Grasim Limited (2769):- The share price of this Aditya Birla Group flagship company is currently trading around Rs.2727. Buyable with a stoploss of Rs.2707, this stock is likely to register a price of Rs.2787 to Rs.2808 in a short period of time…!! Bullish focus on Rs.2820…!! Sun Pharma ( 1921 ) :- Positive breakout around Rs.1888 as per technical chart…!! Buyable with support of Rs.1878, this stock is likely to touch Rs.1933 to Rs.1940…!! Havells India ( 1857 ) :- As per the technical chart, this stock of consumer electronics sector has the possibility of a target price of Rs.1833 to Rs.1818 with a profitable sell-off around Rs.1880. Consider a trading stoploss of Rs.1900..!! HDFC Bank ( 1691 ):- This stock is sellable with a stoploss of Rs.1723 registering an overbought position around Rs.1707..!! It is likely to show the price of Rs.1670 to Rs.1655 in phases…!! Consider bullish above Rs.1730…!!
Future direction of the market… Friends, the current year investment figure of Domestic Institutional Investors (DIIs) in the country's equity market has crossed Rs four lakh crore in cash. This number of investments by DIIs is the highest ever in a single calendar year. Against this, there is a net sale of Rs.2,01,546 crore in cash by foreign investors. Foreign Institutional Investors (FPIs) have been selling heavily on the one hand while sustained buying by DIIs is supporting the country's equity market. Net inflows have been seen for the fifteenth consecutive month in October. DII equities have seen a strong take-up as a result of increased participation of retail investors in mutual funds. In the current year, Sensex has returned 13% while Nifty50 index has returned 15%.
In the coming days, along with large caps, small and mid caps can also see attractiveness. As global fund managers are increasing their allocations in China at the expense of India in view of the incentives announced by China to stabilize the economy, they are seeing inflows from the Indian market, foreign investors have withdrawn approximately eight billion dollars from the Indian market in the current month. The survey also found that their reallocation towards China is happening at the expense of Indian equities. In the coming days, Indian markets will be watching global trends, geopolitical tensions and corporate results of companies as well as elections in the coming week.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
