Sensex up nearly 250 pts, Nifty just above 11,300; key reasons

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Updated: October 11, 2019 4:32:09 PM

The benchmark indices -- Sensex and Nifty -- ended on a positive note tracking cues from global markets encouraged by hopes of a trade truce between the US and China.

Both the Sensex and Nifty lost about 1% on ThursdaySensex jumped 246.68 points to end at 38,127.08, while Nifty rose 70.55 points to 11,305.10 in the intraday trade on Friday.

The benchmark indices — Sensex and Nifty — ended on a positive note tracking cues from global markets encouraged by hopes of a trade truce between the US and China. Sensex jumped 246.68 points to end at 38,127.08, while Nifty rose 70.55 points to 11,305.10 in the intraday trade.  On Thursday, Sensex plunged nearly 375.02 points to hit 37,802.93 during the session and the NSE Nifty benchmark fell to 11,208.55, down 104.75 points from the previous close. A selloff led by banking and financial services shares pulled the markets down in yesterday’s trade. Infosys, Vedanta, Tata Motors, ONGC, Tata Steel, HUL, HCL Tech, Tech Mahindra and Bharti Airtel were the major gainers. Yes Bank, M&M, RIL, TCS, Hero MotoCorp, IndusInd Bank and NTPC were the major laggards.

“Markets will first react to the Infosys numbers in early trade on Monday. Besides, the news related to the US-China trade talks will also be closely watched. We’re still seeing mixed indications thus expect further consolidation in the index. At the same time, excessive volatility on the stock-specific front would be hard to tackle. We suggest limiting naked leveraged positions and waiting for some stability,” Ajit Mishra Vice President, Research, Religare Broking said.

Also read: Why RBI’s 25bps repo rate cut was a missed opportunity

“For the coming week, the zone of 11200-11270 will be very crucial. Any meaningful breach of this zone will invite weakness in the markets. On a broader, we expect NIFTY to oscillate in a broad range while remaining vulnerable at higher levels. Up moves, if any, should not be chased and should be used to protect profits at higher levels,” technical analyst, Milan Vaishnav, CMT, MSTA told Financial Express Online.

Meanwhile, the Indian rupee appreciated marginally to 71.03 against the US dollar intra-day. The brent crude futures rose 1.79 per cent to $60.16 per barrel.

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