Sensex, Nifty mirror global cues, end with losses; here’s what to make of the day’s trade

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Updated: Oct 29, 2020 4:16 PM

Only 9 Sensex constituents ended with gains and among sectors only Nifty IT managed to move higher. HDFC Bank and HDFC were some of the top drags.

sensex, niftySBI was the worst performed, down 4.88% followed by Axis Bank and ICICI Bank. Broader markets again outperformed benchmarks on Thursday.

For the second-day straight, Sensex and Nifty ended with losses as they looked towards weaker global cues and not the better than expected quarterly earnings. S&P BSE Sensex moved 172 points lower while Nifty closed at 11,670, which is above the crucial support levels of 11,650-11,660. Only 9 Sensex constituents ended with gains and among sectors only Nifty IT managed to move higher. HDFC Bank and HDFC were some of the top drags while Asian Paints, UltraTech Cement, and HCL Technologies were seen trading higher. With today’s loss, so far this week, Sensex has fallen 2.3%.

Vinod Nair, Head of Research at Geojit Financial services

“As expected the Indian stock market has turned  its focus from Q2 result driven rally to international developments as the global market is worsening. Markets across the world are volatile because of rising corona cases impacting the recovery of the economy and ambiguities over the US election and stimulus package. Additionally, today Indian indices ended weak following the October monthly F&O expiry. This weakness can stay for the short-term, a reversal can happen as strong fiscal and monetary stimulus is expected from govts and central banks in the world to overcome the crisis.”

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers –

“Indian markets opened on a negative note following negative cues from Asian market peers as sustained increase in coronavirus cases seen in the U.S. as well as across Europe likely weighed on investor sentiment in Asia-Pacific; Also Japan’s retail sales fell 8.7% in September as compared to a year earlier. During the afternoon session markets showed signs of some recovery with buying witnessed in frontline stocks like Asian Paints, Kotak Mahindra Bank and UltraTech Cement amongst others but failed to sustain as global cues further turned negative as Germany and France announced fresh lockdown measures in a bid to fend off the new wave of Covid-19 cases sweeping through Europe.”

S Ranganathan, Head of Research at LKP Securities

“As we approach the Presidential Elections in the US, markets today anxiously await earnings of the BIG-4 in the US. While the NIFTY arrested its fall today with select stocks in Cement & Banking pulling their weight, the broader markets saw buying across select names in Pharma & Sugar.”

Ajit Mishra, VP – Research, Religare Broking – 

“Market inched further lower and lost nearly half a percent amid muted global cues. After the gap down start, the benchmark oscillated in a range till the end and settled closer to the lower band. Volatility remained on the higher side, thanks to unwinding and rollover of October month derivatives contracts. Finally, the Nifty index settled at 11,671 levels; down by 0.5%. We reiterate our cautious stance as there is high uncertainty in global markets due to recent surge in COVID cases. A decline below 11,600 in Nifty would pave way for further slide. In case of a rebound, 11,750 would act as a hurdle. Traders should limit their leveraged positions and maintain a balanced approach.

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

“The markets have kept above the 11650 levels upon closing. We need to see if we break that tomorrow. Should that happen, we would be commencing the November series on a negative note as the Nifty can then go down to 11400-11450 levels. On the upside, we have a stiff resistance at 11900-11950.” 

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