Sensex falls 340 pts from record high; charts show Nifty may hit 18,300; what experts make of today’s trade

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October 11, 2021 4:14 PM

BSE Sensex and Nifty 50 scaled fresh lifetime highs during intraday on Monday, on the back of buying in bank, and auto stocks

Sensex, Nifty, stock marketThe domestic market continued its bullish run backed by gains in banking, power, realty and auto sectors

BSE Sensex and Nifty 50 scaled fresh lifetime highs during intraday on Monday, on the back of buying in bank, and auto stocks. BSE Sensex gained 77 points or 0.13 per cent to end at 60,136, while NSE Nifty 50 rose 50 points or 0.3 per cent and settled at 17,945. During intraday, Sensex hit a record high of 60476.13, and Nifty vaulted above 18,000 for the first time ever. Index hravyweights such as HDFC Bank, ICICI Bank, ITC, Housing Development Finance Corporation (HDFC), Kotak Mahindra, others contributed the most to the indices’ gain today. The broader market indices outperformed the equity benchmarks. BSE Midcap index gained over half a per cent or 141 points to 25,978, while the SmallCap index added 0.60 per cent or 176 points. India VIX, the volatility index, was up 2.8 per cent to settle at 16.09 levels. Analysts see Nifty 50 index rising to 18300 in short term.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Indian markets advanced sharply in the first half but erased most of its early gains after dismal TCS results resulted in heavy selling in the IT pack. Technically, the market has formed a shooting star pattern at the top of the rally, which is an indication of uncertainty in the market. There should be a strategy to reduce the weak long positions in the market to the resistance levels that exist at 17980, 18040 and 18080. If the Nifty forms a positive reversal after hitting the major supports that exist at 17850 or 17810, a buy call is advised. In case, the Nifty closes below the 17800 level, it could weaken further to the 17600 level.

S Ranganathan, Head of Research, LKP Securities

The Nifty scaled mount 18K today led by Reliance, Auto stocks & Power stocks even as the IT Index faced profit booking throughout the day. The broader markets saw heightened activity in Exchange stocks with Nifty PSE stocks lending good support. The afternoon session however did see profit booking as stocks do remain vulnerable to earnings disappointment.

Ashis Biswas, Head of Technical Research, CapitalVia Global Research

The market witnessed some positive movements and an attempt to hold the level around the Nifty 50 index level of 18000. The market shows that it is going to be crucial for the short-term market scenario to sustain above the 18000-18030 Nifty 50 index zone. If the market is able to sustain the level of 18000, it can witness higher levels of 18250. The momentum indicators like RSI and MACD indicating positive momentum is likely to continue.

Vinod Nair, Head of Research, Geojit Financial Services

The domestic market continued its bullish run backed by gains in banking, power, realty and auto sectors. However, the indices gave away early gains following weakness in global peers due to rising commodity prices and the upcoming earnings season, compelling investors to trade cautiously. The auto sector continued its outperformance in expectation of demand revival during the festive season and power & renewable energy will continue to be in focus. Banking stocks followed the trend owing to strong business preview numbers and favourable credit growth data. However, the IT sector was under pressure as initial earnings releases failed to meet market expectations.

Palak Kothari, Research Associate, Choice Broking

On the technical front, the Index has given a breakout of a major resistance level which points to strength for the upside in the upcoming session. The ADX has closed at 37 levels, which indicates good volatility for the upcoming trading session. The index has been trading above 21*50 Hourly Moving averages which suggest upside movement. The stochastic indicator has also given a positive crossover which indicates a north move for the counter. At present, the Index has immediate support at 17800 level while resistance comes at 18050 levels.

Mohit Nigam, Head – Hem Securities

On the technical front, indicators such as RSI and MACD are indicating that strong positive momentum in Nifty 50 is likely to continue and we may see 18,200-18,300 levels in the short term. Strong support can be seen at 17,700 level while 18,200 level may act as an immediate resistance in Nifty 50.

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