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
The 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.
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.
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.