Market Highlights: Sensex ends Muhurat trade with gains, Nifty closes below 12,800; broader markets outperform

"Participation by clients in special muhurat trading session was enthusiastic, as Nifty and Sensex are at  all time high levels, global markets are resilient and Q2 earning season has been very strong.  Today there was strong move in names like BPCL HPCL IOC due to progress in the divestment of BPCL.  Tata steel was up 1% due to strong nos on friday and insurance cos like HDFC Life and SBI life continue to remain strong. Markets are likely to remain strong as flows into EMs (Emerging Markets) has improved in Nov. and Govt too has been taking steps to revive the economy thru PLI schemes." -- Hemang Jani, Head - Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services

"With recent news on progress of an effective vaccine against covid-19, we appear closer to the end of a difficult period for society at large. Despite a year where governments have had to balance conflicting interests of physical well-being of citizens and economic stability, financial markets have largely worked efficiently in pricing risks and appear to point to an upcoming period of rapid progress. As the combination of fiscal and monetary stimulus kicks in along with a broad re-opening of the economy, we can expect earnings growth in the coming couple of years to be robust. Coming into FY20, Nifty EPS had grown at 4% CAGR over the previous 7 years - going ahead, FY20-23 earnings CAGR is estimated to be 15-16%. As a domestically oriented economy, we expect the coming year to be favorable for pro-cyclical sectors like Banks and Consumer Durables and for companies tied to a robust pick-up in construction activity - Cement, Real Estate, Metals and Road-builders. With contained inflationary pressures, we expect INR to have a strengthening bias and act as a headwind against export oriented sectors like IT Services," said S Hariharan, Head - Sales Trading, Emkay Global Financial Services.

S&P BSE Sensex closed the Muhurat trading session at 43,637 points, it's highest ever closing tally. Nifty closed at 17,770. 

Nifty Realty was the top sectoral gainer, jumping 0.83% during the Muhurat Trading session. 

Among BSE 500 constituents, MAS Financial Services, Ratnamani Metals, and Indiabulls Real Estate were the top gainers, jumping over 5%c each.

Only Powergrid, Titan, Ultratech Cement, and Bajaj Finance were the four stocks that ended in the red among the 30 Sensex constituents. 

Stocks markets will remain closed on Monday, November 16 on Diwali Balipratipada. 

State Bank of India, Bajaj Finance, and Tital were the top drags on Sensex at the end of the Muhurat Trading session. 

Sun Pharma shares jumped over 1% while Tata Steel and Infosys were up 0.98% each making them the top three gainers on Sensex. These were followed by HDFC Bank, Bharti Airtel, and L&T.

Sensex closed the Muhurat trading session with gains of 195 points, while the Nifty 50 ended below the 12,800 mark. Broader markets were seen outperforming the benchmark indices. 

BSE Midcap index was up 0.50% while the BSE Smallcap index was up 0.75%. Both were outperforming benchmark index.  

Benchmark indices trimmed their gains just ahead of the closing bell. Sensex was now up nearly 100 points while Nifty 50 was below the 12,800 mark. 

Sun Pharma, Tata Steel, and Bharti Airtel were the top Sensex gainers. These were followed by Infosys, Bajaj Finserv and ONGC.

The fear gauge of domestic equity markets, the India VIX slipped 3.23% during the Muhurat Trading session to sit at 19.07 levels. 

After a steep correction, stock has found support near the 61.80% retracement levels indicating that the bulls have entered into the stock. On the monthly timeframe stock has bounced after forming a big doji candle formation indicating change of trend to the upside. Volumes were strong when the stock found support at lower levels indicating accumulation at lower levels. Momentum is expected to turn more bullish as soon as the RSI gives a bullish crossover.

The above analysis indicate an upside of 515-545*

~ Axis Securities

Snowman Logistics share price jumpe d20% to hit the upper circuit at Rs 54.90 per share. The stock has jumped 49% in the last 5 trading sessions. 

Telecom major Bharti Airtel has seen a muted performance over the last few months despite a strong bull run. Today Bharti Airtel shares were up 1,48% trade at Rs 482 per share.

Pharma firms have had a buoyant 2020 so far. During the Muhurat Trading session the Nifty Pharma index was up 0.45%. Cadila Healthcare, Alkem Laboratories, Torrent Pharma, and Lupin were aming the top gainers.

The midcap and smallcap indices on BSE were outperforming the benchmark index. BSE Midcap was up 0.83% while BSE Smallcap was up 0.89%. Sensex jumped 0.67%.

Banking stocks were moving higher. Nifty Bank index was up 0.92% at 28,726 points. Nifty Private Bank index was up 0.94%.

During the Muhurat trading session 12 BSE200 constituents were seen hitting fresh 52-week highs. Adani Enterprises, Adani Green, IndiGo, Eicher, Ultratech Cement, and Naukri were some of those stocks. 

Only Nestle India, Powergrid and NTPC were the three S&P BSE Sensex constituents that were trading with losses. 

Among the top gainers on Sensex are Bajaj Finserv, Tata Steel, and IndusInd Bank. These were followed by Bharti Airtel, SBI and Larsen & Toubro.

Sensex began trading at 43,815 points while Nifty opened above 12,800.

Sensex and Nifty moved closer to all time highs during the pre-open session just ahead of the Muhurat trading session. 

Sensex was over 400 points high, just shy of the 43,900 mark. Nifty surged and crosed the 12,800 mark.

Sensex, Nifty sky-rocket in pre-open session just ahead of Diwali’s Muhurat trading. Sensex moved over 400 points higher while Nifty was above 12,800.

The Covid-19 pandemic has impacted the banking sector as a whole however measures lend by RBI and government help it to pass through this difficult time. At present in Q2FY21, we witnessed many banking players (both private and public banks) posted better numbers on the back of improving asset quality, better collections and lower provision. In the coming quarters, with improving demand and the economy getting back on track, the banking sector would see good growth recovery. We would prefer investing in large private banking space with ICICI bank as our preferred pick. The bank has a strong brand name, healthy capital and liquidity position, stable asset quality, a large customer base and improved corporate governance under new management. We have initiated a Buy on the stock with a target price of Rs 552.

Buy UltraTech Cement
Buy Range: 4600-4350

With current close, stock has run up sharply from the March’20 lows and has registered new all time highs (on closing basis). On the quarterly chart, stock is trending up forming a series of higher Tops and higher Bottoms formation. 

The quarterly RSI has given a bullish crossover indicating that the momentum has turned positive. The above analysis indicate an upside of 5150-5480.

"We expect further consolidation in the Nifty after the recent surge and also due to the existence of a hurdle at 12,800. In the case of any dip, it would find support around the 12,400-12,500 zone. Meanwhile, we suggest focusing on the broader markets as we’re seeing fresh traction but stick to the quality midcap and smallcap names," said Ajit Mishra, VP - Research, Religare Broking.

Bosch Limited (Bosch), a leading technological player is set to gain from the implementation of Bharat Stage 6 (BSVI) emission norms in India. India move directly from BS-IV norms to BS-VI norms in order to curb pollution. We recommend our investors to BUY the scrip with target of Rs 14100 from 12 months investment perspective. At CMP, the scrip is valued at P/E multiple of 26x on FY22E Bloomberg consensus EPS of Rs 448.2.

~ Ashika Group 

"Bharti’s execution has been top-notch in the last few quarters, evident from strong 16% India Mobile EBITDA growth cumulatively in the last two quarters. Robust 10m subscriber adds lead to cumulative ARPU improvement of 5%," brokerage firm Motilal Oswal said. 

Upside Potential - 42%

Pharma stocks have been shining bright so far this year and by the looks of that glitter is not looking to fade away anytime soon. A slew of measures have been announced that could help India’s pharmaceutical industry emerge as a global player. Domestic pharma players have also set their eyes on the API segment where China has been a dominant player, even a small piece of that cake could help domestic pharma players. Analysts are upbeat on the sector and picking their top bets among some of the leading names in the space. Here are some of the top pharma stocks that analysts recommend.

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The domestic CV industry is poised for healthy growth led by increased government spending on infrastructure, mining and pick-up in economic activity. We believe ALL stands to benefit from the upcycle in the CV industry given its strong position in the M&HCV and LCV segment. Further, the proposed implementation of CV scrappage policy is likely to create an additional demand of ~1 lakh vehicles. To reduce the earnings volatility, the company has sharpened its focus on increasing its revenue share from LCVs, spares, exports and defence. We believe that ALL’s strong brand presence in the CV segment and its focus on diversifying to less cyclical businesses makes it one of our preferred picks in the sector. We recommend a Buy on the stock with a target price of Rs 105.

~ Religare Broking

“The market is consolidating and slowly inching higher towards 12900/13000 levels. The Nifty 50 index is forming a symmetrical triangle on the intra-day chart. It's a bullish continuation formation that would lift the market towards the psychological mark of 13000. The breadth of the broader market is quite satisfactory, which is indicating a firm grip of bulls and would not allow the Nifty to fall below 12600 levels in the normal circumstances," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

It is considered auspicious to buy stocks during Laxmi Pujan on Diwali, for which stock exchanges conduct Muhurat trading. This year Muhurat trading will take place on Saturday, November 14, 2020. On the back of economic recovery and encouraging news developments on COVID-19 vaccine, stock markets have mapped an upward trajectory to make new all-time highs. Axis Securities in its Technical Diwali Muhurat Picks has picked 11 stocks and suggests investors buying and accumulating for the potential upside of 15-22 per cent. It has included large-cap/Mid cap stocks, which have performed in line with the market over the last one year and are trading above their breakout levels or near their major support levels.

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"Technically, the benchmark index has been trading in a Range Bound movement since the last three days after forming an all-time high which indicates sideward movement between the range of 12550 to 12770, either side breakout will lead the particular direction and confirm the trend for time being," said Sumeet Bagadia, Executive Director, Choice Broking.

Indian share market benchmarks BSE Sensex and Nifty 50 ended the last trading day of Samvat 2076 with 10 per cent gains despite COVID-19 induced volatility throughout the year. Looking at the current gush of money coming into India and many foreign investors betting on the ‘India is the fastest growing economy’ story, Rajesh Palviya, Head Technical & Derivatives, Axis Securities, told Financial Express Online that the Nifty index is expected to touch 13,800-14,000 before next year’s Diwali. “Nifty has good support at 12400 followed by 12000 level on the downside. However on the higher side 13000-13200 may act as a resistance zone for this up move,” Palviya said.

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People across the country celebrate Diwali in several ways, and when it comes to making investments, several traders invest during a special ‘Muhurat’ to mark a new beginning. They do so during the festive season, as it is considered auspicious according to the Hindu lunar calendar. They often invest in gold, followed by equity markets, to bring good luck, prosperity, and the blessings of the goddess of wealth, Lakshmi.