The domestic equity market ended in the green today after closing flat yesterday. BSE Sensex closed over 400 points higher at 62,533 while NSE Nifty settled 0.6% higher at 18,608. Bank Nifty hit a fresh record high intraday, gaining over 200 points to touch 43,983.80. Sectorally, the indices shifted between gains and losses, with Nifty PSU Bank soaring in trade, closing 3.81% higher. “Underpinned by favourable domestic macro numbers and optimistic global cues, domestic indices belled the day in positive terrain. PSU banks led the rally while IT snapped its losing streak on bargain buying. India’s retail inflation eased sharply to 5.88%, which was within the RBI’s tolerance band. However, the euphoria was partially offset by an unexpected decline in industrial production, which shrank 4% in October. The US inflation figures, which are due before the Fed announcement, will provide an indication of the Fed’s policy stance,” Vinod Nair, Head of Research, Geojit Financial.
S Ranganathan, Head of Research, LKP Securities
Financials helped the Nifty rally 100 points in today’s trade as the PSU Bank Index staged yet another smart rally rising almost 4% today. A confluence of factors that include positive tailwinds, under ownership and investor appetite was clearly visible as the rally percolated even to smaller private sector banks.
Kunal Shah, Senior Technical Analyst, LKP Securities
The Bank Nifty index continued to trend higher and closed at record-high levels. The momentum indicators are in the strong buying zone which will help the index to move higher in the short term towards the 45,000 level. The lower-end support is visible at 43,400 and if breached will lead to a further correction toward the 43,000 level.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets were on a firm footing on the back of short covering as retail inflation easing to 11-month low raised hopes that the rate hike regime could slow down and take a pause going ahead. Also, overnight gains in the US markets further aided the local market sentiment, which had slipped into a range-bound mode over the past few sessions. Technically, the market not only reclaimed the 20 day SMA (Simple Moving Average) level but also closed above the same which is broadly positive. The bullish candle on daily carts and promising reversal formation is indicating the continuation of an uptrend wave in the near future. The uptrend texture is likely to continue in the near future and 18,700-18,725 would be the next resistance zone for the bulls. On the other hand, a fresh selloff could be seen only after the dismissal of 18,450.
