Sensex, Nifty snap 2-week gaining streak, end 1% down this week; key things from today’s trade

By: |
October 16, 2020 4:19 PM

The market will look forward, with high hopes on Q2 results and update on stimulus plans. IT, Telecom, Pharma and Banks will be the sectors under focus

Sensex, NiftyThe trend among sectoral indices was largely negative, with Nifty Pharma index as the top sectoral loser. The index was down nearly one per cent

Following a bloodbath in the previous session, the domestic equity market benchmarks BSE Sensex and Nifty 50 ended the last day of the week on a positive note. BSE Sensex ended 254 points or 0.64 per cent higher at 39,983, while the broader Nifty 50 index gained 82 points or 0.70 per cent to close at 11,762. This week headline indices lost over 1 per cent as investor sentiment turned cautious. With a rangebound trade today, technical analysts see the support of 11550-11600 intact for Nifty 50 index. “For the Nifty 50 index, strong support is at 11,500 limiting the downside, in the near-term. The market will look forward, with high hopes on Q2 results and update on stimulus plans. IT, Telecom, Pharma and Banks will be the sectors under focus with a positive bias,” said Vinod Nair, Head of Research at Geojit Financial Services.

Tata Steel top-performing stock: Tata Steel was the top Sensex gainer, up 5.24 per cent, followed by HDFC Bank, UltraTech Cement, Power Grid Corporation of India, ONGC, Kotak Mahindra Bank and Infosys.

HCL Tech top drag: HCL Tech shares fell the most, down 3.76 per cent. HCL Tech Q2 net profit came at Rs 3,142 crore in July-September quarter, rising 18.5 per cent. The company had posted a net profit of Rs 2,651 crore in the corresponding period of the last year. M&M, Reliance Industries (RIL), Asian Paints and Sun Pharma were among other losers on the pack.

Mid-caps, small-caps outperform: The broader markets outperformed the equity benchmarks. S&P BSE MidCap index jumped over 1 per cent or 152 points to end at 14,621, while the S&P BSE SmallCap index gained nearly one per cent or 143 points to finish at 14,787.

Nifty Metal index jumps 4%: Barring Nifty IT and Nifty Media indices, all the sectoral indices ended in the positive territory today. Top gainers in Nifty Metal index were JSW Steel, Welspun Corp, Jindal Steel and Tata Steel. Nifty Bank index too gained 2 per cent led by Bandhan Bank, HDFC Bank, RBL Bank and Kotak Mahindra Bank.

What analysts advise: Investors should trade with a cautious bias as, after the swift rise in markets, there could be sharp corrections, said Sanjeev Zarbade, VP PCG Research, Kotak Securities. “Risk could be a resurgence of Covid-19 in India,” he added.

Technical outlook: “It should be duly noted that key indices are still trading within the rising channel on a weekly chart and need to close below the channel support to confirm the beginning of a bearish trend,” said Nirali Shah, Senior Research Analyst, Samco Securities. Traders are advised to maintain a cautious stance and be observant of the market’s response to the channel support. “Support and resistance in the short term are placed at 11300 and 11900,” Shah added.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Sensex, Nifty close with gains; MSCI’s FOL change lifts sentiment despite weaker global cues
2Asian shares slip after Wall St’s worst day in a month
3Just Dial shares up 65% in 9 days; firm looks to challenge IndiaMART’s dominance in B2B classifieds