Nifty, Sensex begin Samvat 2079 on positive note, gain nearly 1% in Muhurat Trading session; rally to continue | The Financial Express

Nifty, Sensex begin Samvat 2079 on positive note, gain nearly 1% in Muhurat Trading session; rally to continue

Indian benchmark indices started Samvat 2079 on a positive note. Both BSE Sensex and NSE Nifty 50 ended the Diwali ‘Muhurat Trading’ session up nearly 1 per cent.

Nifty, Sensex begin Samvat 2079 on positive note, gain nearly 1% in Muhurat Trading session; rally to continue
BSE Sensex gained 524.51 pts or 0.88% to end at 59831.66, while the broader NSE Nifty 50 settled 154.50 points or 0.88% higher at 17730.80. (Pic: BSE India Twitter)

Indian benchmark indices started Samvat 2079 on a positive note. Both BSE Sensex and NSE Nifty 50 ended the Diwali ‘Muhurat Trading’ session up nearly 1 per cent. In Monday’s one-hour special trading session, Sensex gained 524.51 pts or 0.88% to end at 59831.66, while the broader Nifty 50 settled 154.50 points or 0.88% higher at 17730.80. Nestle India, ICICI Bank, HDFC, Larsen and Toubro, and SBI were among the top Nifty gainers, while HUL, Kotak Mahindra Bank, HDFC Life, and Adani Enterprises were the laggards. All the sectoral indices ended in the green with bank and capital goods indices rising 1% each. In broader markets, BSE Midcap and Smallcap indices edged up 0.5-1%.

Strong global markets fuelled the domestic market rally as US markets ended with more than 2% gains on Friday, aided by dovish commentary from some US Fed members on the interest rate trajectory. Asian markets traded largely positive on Monday. Short covering from FPIs also helped the indices move higher. Strong corporate earnings from index heavyweights such as ICICI Bank and Kotak Mahindra Bank also provided support to the benchmark indices. Shares of Reliance Industries also rose nearly 1% after the company said that it will demerge and list its financial services business housed under Jio Finance Services.

Indian share market outperformance likely to continue

“Even though Samvat 2078 ended with marginal negative returns the overarching feature of the year gone by was India’s distinct outperformance. While the MSCI World Index and MSCI EM Index fell by 23% and 33% respectively, Nifty hugely outperformed with a minor cut of only 3%. This outperformance in a year of a war in Europe and rising inflation and interest rates in the developed world reflects Rising India’s resilience. From the market perspective, two factors stand out: One, India’s economic fundamentals are relatively strong. Two, DIIs and retail investors have become a force to reckon with overwhelming the FII selling. This trend can be expected to continue,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In the truncated festival week, bulls have reason to celebrate Diwali on a higher note, according to Santosh Meena, Head of Research, Swastika Investmart Ltd. “The market will continue to have an eye on the direction of global markets, the dollar index, US bond yields, and crude oil prices. On the domestic front, October month expiry may lead to some volatility whereas Q2 earnings will cause stock-specific movement,” he said.

Nifty may head towards 18000, Bank Nifty to 41480

“Technically, Nifty is witnessing higher highs and higher lows formation after respecting its 200-DMA. On the upside, 17725 is an immediate hurdle; above this, we can expect a rally toward the 17900-18000 zone. On the downside, 17400 is an immediate and strong support level while 17300-17200 is the next demand zone. As per open interest distribution, 17500 will act as a major put base ahead of monthly expiry,” Meena said adding that Bank Nifty is outperforming, and it is likely to head toward an all-time high of 41840.

“On the downside, 40500 is immediate support while 40000 is a strong support level. Long exposure of FIIs in the index future is at 30% which is still in oversold territory while the put call ratio is at a neutral level of 1.03. The market is light and it will also have the support of short covering,” he added.

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First published on: 24-10-2022 at 19:49 IST