Broader markets underperformed benchmarks while midcap and smallcap indices ended the day in the red.
The rotation away from tech stocks seems to have taken hold and market leadership is likely to change.
Sensex and Nifty once again soared to fresh all-time highs on Monday, beginning the week on a positive note. S&P BSE Sensex ended at 49,269, up 486 points while the Nifty 50 index closed at 14,484. IT majors like HCL Technologies and Infosys surged 6% and 5%, respectively, making them the top index gains. Volatility surged more than 8% to sit above 22 levels. Broader markets underperformed benchmarks while midcap and smallcap indices ended the day in the red. Bajaj Finserv, Bajaj Finance, and Reliance Industries were the top drags on Sensex today.
“Markets started the week on a robust note led by positive global cues and strong earnings from IT behemoth TCS. Despite a tepid show by banking stocks, the Nifty managed to end with gains of 1% to close just shy of 14,500 levels. The anticipation of better than expected earnings season combined with supportive global cues aided the upbeat start. Going forward, stock-specific volatility would remain high as earnings season would gain pace. Further, key macro data like CPI, WPI and IIP would also be actively tracked by investors. Amid all, we reiterate our positive yet cautious stance on markets and advise aligning positions according to the prevailing trend.”
“Improved outlook for 3rd quarter earnings along with strong global cues helped Sensex to breach 49,000 mark. The rally in the market was led by the IT sector backed by firm earnings results, however, small and mid-cap stocks were under pressure. Hopes of a new US stimulus to be unveiled this week created an upbeat movement in Wall Street while profit booking is seen in the European markets. This ongoing rally is being fueled by strong Q3 earnings preview, foreign fund inflow and optimism around Union Budget 2021.”
“Buoyed by positive global cues, Tech stocks together with Auto stocks powered the NIFTY closer to the 14500 mark. While we did see profit booking in Metals during Afternoon Trade, the sheer momentum in IT & Auto kept the Bulls in total control ahead of Q3 earnings.”
Manish Shah founder Niftytriggers-
“Nifty continues to remain in a strong uptrend with corrective declines virtually absent and though the action looks stretched sellers are being trounced in the market. Nifty has moved above the monthly R1 Pivot of 14350 and R1 pivot of the weekly is at 14494. Beyond this, the next resistance is at 14646 R2 of the weekly and above that to 14718 is the R2 of the monthly. There are no signs of a change in trend on the lower time frames. Support for Nifty is at 14350-14325 and any declines could find buyers lurking at this zone.”
Rohit Singre, Senior Technical Analyst at LKP Securities –
“Index opened a day with gap and managed to hold the bullish stream for a day and closed a day near good hurdle zone of 14500 with gains of nearly one per cent forming a dragonfly kind of Doji candle pattern on the daily chart. Going forwards index has shifted its support to 14400-14300 zone if managed to hold above-said levels we may see the index to march towards 14550-14600 zone which is immediate hurdle on the higher side.”