Sensex, Nifty gain for seventh day straight; here’s what experts make of today’s market movement

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November 10, 2020 4:20 PM

For the seventh-day straight Sensex and Nifty have surged and for the second day straight they have climbed to new record highs.

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For the seventh-day straight Sensex and Nifty have surged and for the second day straight they have climbed to new record highs. S&P BSE Sensex closed at 43,277 points while Nifty 50 breached the 12,600 mark. Financials aided the rally while pharma and IT stocks were down in the red. Positive news flow around the coronavirus vaccine aided bulls today with hospitality and airline stocks continuing to move higher. Global markets too were jubilant, surging on the back of the coronavirus vaccine news flow.

Santosh Kumar Singh, Head of Research, Motilal Oswal AMC – 

“Markets are at all-time high, however they are driven by three news flows a) US elections uncertainty over b) COVID Vaccine may be much closer and c) India recovery has been faster. Hence, the markets may not see big correction from here and in the medium to long term we see markets doing well. In my view financials is still an area where good upside may be left with all the banks reporting better credit quality.”

S Ranganathan, Head of Research at LKP Securities

“Bulls went on a rampage today buoyed by positive global cues and the 1.5% rise in Indices reflected the buoyant mood ahead of the festive season. Financials went berserk well supported by heavy weights across sectors barring Pharmaceuticals which witnessed profit booking.”

Vinod Nair, Head of Research at Geojit Financial services

“The global financial markets experienced a wave of euphoria over the potential breakthrough in the coronavirus vaccine development. Indian indices moved in sync with global peers touching fresh highs with continued support from banking stocks while IT and Pharma sectors witnessed heavy sell-offs. An uptick in beaten down stocks & sectors were visible today viewing hopes of recovery in business. The existing momentum can sustain on vaccine development, domestic stimulus package, consistent FII inflows and bounce in globalization post the Biden victory. However, temporary correction due to profit booking cannot be ruled out because the market is highly optimistic that the vaccine development will rapidly improve the ground reality.”  

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

“We almost hit 12650 on the Nifty; if we are able to sustain the levels of 12650-12700, the index can move to 13000 levels. Hence 12700 might pose a resistance and some profit booking can be considered at these levels and thereafter a buy on dips strategy can be used to enter the Nifty on any dip or correction.”

Ajit Mishra, VP – Research, Religare Broking –

The news of the Covid-19 vaccine with high efficiency raised hopes of faster than expected recovery in the global economy boosted the sentiment. On the domestic front, buoyancy continued in the banking and financial majors which gradually pushed the index as the session progressed. Nifty is not showing any sign of slowing down and may take a breather around 12,800. Needless to say, the recent surge was largely driven by banking and financials while others are contributing selectively. Traders should align their positions accordingly and use dips to accumulate stocks that are participating in the rally.

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