Nifty winning streak continues

Nifty winning streak continues

The Nifty winning streak continues. After rising for two weeks in a row, the benchmark indices edged higher, led by IT and automobile stocks, gains in Asian equities, a drop in oil prices, and hopes that central banks will reduce interest rate hikes. There is a lot to take in.

This is an action-packed week. This week, the US Federal Reserve and the Bank of England will hold meetings on monetary policy. Similarly, the RBI’s Monetary Policy Committee (MPC) is meeting is on November 3 to discuss the committee’s response on its failure to meet its inflation target for three quarters in a row.

On the IPO front, four companies will raise Rs. 4,200 crores through a public offering this week: DCX Systems, Fusion Micro Finance, Bikaji Foods, and Global Health (which manages hospitals under the Medanta brand).

Today the Nifty 50 opened with gap up of 123 points and closed at 18012, up 225 points or 1.27 percent. During the day, it reached a high of 18023 and a low of 17900. Compared to previous closing prices, the Nifty made a higher-high and higher-low. 

Today, the advance-decline ratio was 1.21, and the market breadth was positive. The volatility index India Vix, on the other hand, further decreased 0.75 percent to settle at 15.80. This is a lowest reading of volatility index in the last over 6 months. FIIs were net buyers today, giving traders yet another reason to cheer.

DAILY MARKET ACTION
Advancers – 1227
Decliners – 1010
52Wk High – 67
52Wk Low – 37
High Band Hitters – 86
Low Band Hitters – 65
200d SMA – 16995
50d SMA – 17505
20d SMA – 17391

Top Gainers and Losers

The top gainers were UltraTech Cement (+4.08%), Eicher Motors (+2.92%), M&M (+2.92%), HDFC (+2.90%), and LT (+2.86%).

The top losers were Apollo Hospitals (-1.25%), Dr.Reddy (-0.73%), Tata Steel (+0.49%), Britannia (-0.37%), and NTPC (-0.34%).

Sectors & Broader Indices

The top gainers were Consumer Durables (+1.48%), Auto (+1.45%), IT (+1.45%), Financial Services (+1.39%), and Oil & Gas (+1.35%).

All sectoral indices closed in green today led by consumer durables, auto and IT. The broader indices followed the benchmark indices. The Nifty Midcap 50 was up by 1.27 percent, while the Nifty Small Cap 50 rose by 0.33 percent.

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.48%
AUTO +1.45%
IT +1.45%

Daily Pivots

18100 level of Nifty is a critical resistance level, and failure to move above 18100 level could cause a correction to 17500-17600 level, as similar tops were achieved earlier on August 19 and September 15. Although, there is firm support around 17500 level, which can limit the downside in the short term.

The Nifty 50s closing price is now above the 20-day, 50-day and 200-day moving average, showing bullishness and positive sentiments.

The winning streak may continue, although the global economic growth has been uncertain, however the investors have maintained faith in India’s growth story. The Nifty is likely to break above 18100 in the near term. Let’s see what this action-packed week has in store for us!

Read previous -Daily Insights- here
Uncertainty and Volatility Persist
UK U-Turn boosts Market Sentiments
Nifty Zoomed

This article is only for educational purposes and is not an investment advice.