Sensex, Nifty extend rally to eighth day; here’s what experts make of today’s market movement

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Updated: Nov 11, 2020 4:21 PM

S&P BSE Sensex closed at 43,593 points while Nifty closed just below 12,750. Asian peers were mixed on Wednesday, with Hang Seng and Shanghai Composite ending lower, while Nikkei 225 and TOPIX ended with gains.

Bharti Airtel, Kotak Mahindra Bank, Diwali 2020Sequential revenue growth recovery in the BFS space was recorded among almost all Indian IT firms.

Sensex and Nifty climbed higher for the eighth day straight, helped by positive global cues. S&P BSE Sensex closed at 43,593 points while Nifty closed just below 12,750. Although index heavyweight Reliance Industries Ltd fell over 4% during the day, a rebound in IT stocks and pharmaceutical names helped the index close higher after having fallen over 700 points from the intra-day high. Asian peers were mixed on Wednesday, with Hang Seng and Shanghai Composite ending lower, while Nikkei 225 and TOPIX ended with gains.

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities – 

“Nifty has gained significantly in the short term and currently trades at all-time high levels. We continue to believe the medium term trend is positive while short term volatility is expected. Since the recent rise has been vertical we expect some correction to set in to provide comfortable entry points. We expect some consolidation in the near term. Momentum support for the month is seen at 11240 above which traders can adopt the buy on dips strategy. Auto stocks look attractive at current levels for aggressive buying while in Metal and Banking the risk-reward proposition is skewed towards risk. From the defensive space, select Pharma and FMCG look attractive.”

S Ranganathan, Head of Research at LKP Securities

“Indices witnessed a significant bout of volatility today but ended very much in the green buoyed by key pivotal across sectors. Metals & select Pharma names saw buying interest while investors bought into insurers in the broader market.”

Abhishek Chinchalkar, CMT Charterholder, FYERS –

“Nifty had broken out of a Bullish Flag pattern last week, the price objective of which was 12770. The index exactly met this price objective today before heading south. Meanwhile, profit booking was also seen in Bank Nifty, a few points below the key resistance level of 29080. While the overall bias still points to the upside, from a very short-term perspective, caution would be warranted given how swift the recent up legs have been. For now, 12770 and 29080 are the key hurdles for Nifty and Bank Nifty, respectively. Until they are surpassed, a minor 2-3 day correction cannot be ruled out.”

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –

“The markets are bullish with upbeat momentum. Traders can consider booking profits at regular intervals and updating their stop loss levels too. We have strong support at 12450-12500. A buy on dips strategy is advised whenever there are intraday drops or corrective phases. A target of 13000-13100 over a period of time is likely.”

Vinod Nair, Head of Research at Geojit Financial services

“Domestic market displayed positivity largely owing to sectors like Pharma, Metals and IT while some volatility was exhibited in the broad market. Latest update on Covid vaccine has lifted the spirit of western markets with Europe showing fast recovery in anticipation of rapid roll-out. We feel that the world’s financial market is getting a lot of new money, which was on-hold during the US election period while the actual outcome is much better. Markets have rapidly reached to premium level with over-optimism supported by easy money, caution is advised in the short-term, as production and distribution wise the real benefit will take time.”

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