ICICI Bank surges over 5%: Bank and finamcial stocks were major drivers for BSE Sense today. ICICI Bank was the top-performing stock, gaining 5.3 per cent today. Similarly, Axis Bank, Nestle India, State Bank of India (SBI), HDFC, IndusInd Bank and ONGC, were all up in the range of 3-4.4 per cent. Reliance Industries ended flat today.
What do charts suggest: Today, Nifty opened on a strong note and remained lacklustre within narrow trading range throughout the session. “The daily price action has formed a “Doji” candlestick pattern forming higher High-low as compared to the previous session which remains a positive sign,” Rajesh Palviya, Head Technical & Derivatives, Axis Securities, told Financial Express Online. The index has formed a bullish gap area in the range of 11820-11789 which will now remain a crucial support zone. For near-term, 11900 is important resistance zone to watch for and any sustainable move above this resistance zone may cause upside momentum towards 12000-12100 levels. “On the downside, 11800 will act as a short-term support zone,” Palviya added.
MidCaps, smallcaps: The broader market underperformed the equity benchmarks. The S&P BSE MidCap index ended at 14,706, up 0.58 per cent while the S&P BSE SmallCap index ended at 14,851, up 0.43 per cent.
Equitas SFB IPO opens tomorrow: The Rs 518-crore Equitas Small Finance Bank initial public offer (IPO) will open for subscription on Tuesday, October 20, 2020. The company has fixed a price band of Rs 32-33 per share and the issue will close for subscription on October 22.
Expert’s take: “Participants are still pinning hopes on the passage of the stimulus package in the US before the election and it will remain on their radar. However, on the flip side, any adverse news on COVID-19 might again push the bulls on the back foot. We suggest maintaining a positive yet cautious approach and preferring hedged positions,” said Ajit Mishra, VP – Research, Religare Broking Ltd.