Markets Live: Sensex rallies 718 points to 34,067; Nifty jumps 221 points to reclaim 10,250-mark

Closing bell

The S&P BSE Sensex closed higher by 718.09 points or 2.15 per cent at 34,067.40 and the Nifty surged 220.85 points or 2.2 per cent to 10,250.85. Intraday, the Sensex touched 34,154.60 points and the Nifty jumped to 10,269.10.

Healthcare, realty, capital goods and PSU indices jumped between 3.5-4.2 per cent.

Top five Sensex gainers were ICICI Bank, SBI, Adani Ports, L&T and Axis Bank, while the major losers were IndusInd Bank, HDFC Bank, Kotak Bank, Bharti Airtel and HUL.

As per provisional data, foreign funds sold shares worth Rs 1,356.66, while domestic institutional investors bought shares to the tune of Rs 1,875.89 crore on Friday.

The Sensex rallied 744.9 points or 2.23 per cent to 34,094.21 and the Nifty surged 227.65 points or 2.27 per cent to 10,257.65. Heavy buying in healthcare, realty, capital goods and PSU stocks buoyed the domestic sentiment.

Top five Sensex gainers were ICICI Bank SBI, Adani Ports, Axis Bank and L&T, while the major losers were IndusInd Bank, Kotak Bank, Bharti Airtel, HDFC Bank and HUL.

Pre-close trade

The Sensex surged 609.17 points to intraday high of 33,958.48 and the Nifty jumped 182.2 points to 10,212.20 on heavy buying in healthcare, realty, capital goods and PSU stocks.

Banking shares surged, with the Nifty PSU Bank Index rising as much as 8.3 per cent in its sharpest daily percentage gain since October 25, 2017.

State Bank of India climbed 8.5 per cent to a near two-week high. The stock was among the top percentage gainers on the NSE index. Union Bank of India Ltd jumped 12.4 per cent ahead of its quarterly results due later in the day, while Canara Bank Ltd climbed 12.3 per cent.

Most PSU lenders have reported profit and their asset quality has shown improvement, said Yuvraj Choudhary, an analyst at Anand Rathi Securities.

Bull-call spread on Aurobindo Pharma

The stock of Aurobindo Pharma (₹720.5) is ruling at a crucial level, and finds strong resistance at ₹773. A close above this resistance will trigger a fresh rally, taking the stock to a new peak. On the other hand, the stock finds an immediate support at ₹662 and a crucial one at ₹617. Read more

Top 10 Nifty gainers, losers

NSE sectoral indices

The S&P BSE Sensex surged 567.7 points to intraday high of 33,917.01 and the Nifty50 jumped 163 points to 10,192.90 on heavy buying in healthcare, realty, PSU and realty stocks amid firm global cues.

Top five Sensex gainers were ICICI Bank, SBI, Adani Ports, Axis Bank and L&T, while the major losers were Kotak Bank, IndusInd Bank, HDFC Bank, Bharti Airtel and HDFC.

Record volumes in equity futures, options

Heightened volatility in the equity market has resulted in record volumes in equity futures and options traded on the NSE this calendar. This has increased the divergence in turnover between the cash and derivative segments.  Read more

N-E monsoon may set in on Nov 1

India Met Department has announced November 1 as the fresh date for the onset of North-East monsoon over Tamil Nadu, Puducherry, Kerala and adjoining Karnataka and Andhra Pradesh. Read more

NSE sectoral indices

BSE sectoral indices

Benchmark indices jumped nearly 1.5 per cent in the mid-session trade on heavy buying in healthcare, PSU, banking and capital goods stocks amid firm global cues. The S&P BSE Sensex surged 505.22 points to 33,854.53 and the Nifty50 gained 154.25 points to 10,184.25.

M&M Financial Services

The stock encountered a key resistance at around ₹520 in late April and July this year and began a decline. Since July, the stock has been on a medium-term downtrend.

Somany Ceramics (₹337.8)

Following a strong rally in 2016 and 2017, the stock recorded a new high at ₹973 this January and changed direction, triggered by negative divergence. Since then, the stock has been in an intermediate-term downtrend.

Ambuja Cements (₹190.3): Sell

Investors with a medium-term perspective can sell the stock of Ambuja Cements at current levels. The stock plunged 8.7 per cent last week with good volumes. It decisively breached a key base in the band between ₹200 and ₹205. Read more

Nifty 50 November Futures (10,150)

The Nifty and the Sensex started the week with a gap-up open and continued to move higher. The market breadth of the Nifty index is biased towards advances. All the sectoral indices are in positive territory. Read more

Dr Reddy's jumps 6.4%

Shares of Dr Reddy's Laboratories rose as much as 6.4 per cent to Rs 2,559 in their biggest daily percentage gain since May 22 as the company has posted better-than-expected rise in second-quarter profit of Rs 518 crore. Read more

Sensex gainers, losers

Top 10 Nifty gainers, losers

Benchmark indices were trading in the positive zone as investors lauded a solid set of second-quarter earnings in large-cap companies such as ICICI Bank Ltd and Dr. Reddy's Laboratories Ltd.

The S&P BSE Sensex rose 237.37 points or 0.71 per cent to 33,586.68 and the Nifty50 jumped 71.65 points or 0.71 per cent to 10,101.65.

This follows a tumultuous week across the globe amid heightened worries about corporate earnings and a slowdown in global economic growth.

ICICI Bank, India's third-largest bank by assets, had reported a bigger-than-expected 56 per cent fall in second-quarter net profit on Friday, but said asset quality improved, catapulting shares 9.1 per cent to a two-month high.

ICICI Bank's larger rival HDFC Bank fell as much as 3.4 per cent to its lowest since April 23, while Kotak Mahindra Bank Ltd dropped 5.2 per cent.

“ICICI's results stood out, and money is moving there, which is much cheaper than Kotak and HDFC,” said Naveen Kulkarni, Head of Research at Reliance Securities. “ICICI, which has been lagging the other two banks, could now be playing catch-up.”

Axis Bank climbed 7.3 per cent, while public-sector giant State Bank of India rose 4.8 per cent. The Nifty PSU Bank index rose as much as 4.6 per cent.

Dr. Reddy's Laboratories Ltd advanced 6.4 per cent, clocking its biggest intraday gain since May 22, after the drugmaker posted a better-than-expected rise in second-quarter profit, helped by higher sales in some emerging countries. Conglomerate Reliance Industries Ltd rose as much as 2.4 per cent.

Jindal Stainless hits 21-month low

Jindal Stainless Ltd dropped 9.9 per cent to Rs 46.05, their lowest since January 30, 2017 as the company has posted a Q2 loss of Rs 36.44 crore compared with a profit of Rs 27.3 crore last year. Read more

IndusInd Bank falls over 4%

Shares of IndusInd Bank Ltd fell as much as 4.09 per cent to Rs 1,386.6, lowest since May 23, 2017. The stock broke below a support at Rs 1,420, the 50 per cent Fibonacci retracement level of the uptrend from February 29, 2016 low to August 3, 2018 high. Read more

ICICI Bank jumps 8.4%

Shares of ICICI Bank rose as much as 8.4 per cent to 344, their highest since September 3. The stock posted sharpest intraday percentage gain since August 9, and was the top percentage gainer on the Nifty 50 index. Read more

The S&P BSE Sensex was trading higher by 187.51 points or 0.56 per cent at 33,536.82 and the Nifty50 up 58 points or 0.58 per cent at 10,088 on heavy buying in PSU Bank, Pharma, PVT Bank and Realty stocks amid mixed global cues.

PSU Bank jumped 4.25%, Pharma 3.94%, 0.98% and Realty 0.85%.

M-cap of top-10 Sensex cos

Eight of the 10 most valued Indian firms suffered a combined loss of Rs 1,35,162.15 crore in market capitalisation last week with benchmark BSE Sensex diving around 3 per cent. TCS, RIL and Infosys took a severe beating. Read more

FPIs pull out Rs 35,600 cr

Foreign investors have pulled out a massive Rs 35,600 crore (about $5 billion) from the Indian capital markets this month on concerns over rupee depreciation, global trade war tiff and rising crude prices. Read more

Nifty healthcare and pharma stocks jumped nearly 4 per cent in morning trade. Among healthcare stocks, Divis Labs surged 13.6% followed by Dr Reddy's Labs 5.63%, Aurobindo Pharma 3.73% and Lupin 3.61%. Among PSU Bank stocks, Union Bank jumped 5.07%, Oriental Bank 4.7%, SBI 4.27% and Syndicate Bank 3.85%.

Brent crude at $77.63

Oil prices were stable, supported by a bounce in Asian stocks, but analysts said sentiment remained cautious after a plunge in financial markets last week triggered worries that global growth may be slowing. Front-month Brent crude oil futures were at $77.63 a barrel at 0221 GMT, 1 cent above their last close. Read more

The S&P BSE Sensex jumped 195.03 points or 0.58 per cent to 33,544.34 and the Nifty50 rose 58.7 points or 0.59 per cent to 10,088.70 on heavy buying in healthcare, banking, capital goods and consumer durables stocks amid mixed global cues.

Top five Sensex gainers were ICICI Bank, Axis Bank, State Bank of India, Tata Motors and Sun Pharma, while the major losers were Kotak Bank, IndusInd Bank, HDFC Bank, HDFC and HUL.

As per provisional data, foreign funds sold shares worth Rs 1,356.66 on a net basis, while domestic institutional investors bought shares to the tune of Rs 1,875.89 crore on Friday.

Rupee strengthens to 73.33

The rupee strengthened by 14 paise to 73.33 against the US currency in early trade on fresh dollar selling by exporters and a firm domestic equity market. Read more

Spot gold down at $1,232.54

Gold prices inched down to drift away from a more than three-month high hit in the previous session, as the dollar firmed and Asian stocks edged up after setbacks last week. Spot gold was down 0.1 per cent at $1,232.54 an ounce at 0055 GMT. Read more

Dollar hovers near 10-week peak

The US currency has found support recently on safe-haven buying.

The dollar held firm against a basket of its key rivals, not far off a 10-week peak hit after data showed US economic growth slowed less than expected and as global risk sentiment remained fragile. The dollar index, which measures the greenback's performance against a basket of six major currencies, edged 0.15 per cent higher to 96.499. Read more

Asian markets

Tokyo-listed Brazilian stock exchange ETF jump after election. Image for representational purpose

Asian shares bounced from last week's steep declines, though the sentiment remained fragile amid heightened worries about corporate earnings and a slowdown in global economic growth. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4 per cent after sliding almost 4 percent last week. Read more

Opening bell

The 30-share BSE index Sensex opened 113.48 points up at 33,462.79 against the previous close of 33,349.31 and the 50-share NSE index Nifty opened at 10,052.05 points against the previous close of 10,030.00, up 22.05 points.

Weekly Trading Guide

Downtrend is intact in SBI (₹248.1)

SBI, as expected, broke below the key support level of ₹255 last week. The sharp 4.9 per cent fall in the past week has kept the downtrend that has been in place since early September, intact. The region between ₹255 and ₹260 will now serve as a strong resistance and cap the upside. A fall to test the ₹242-₹240 support region is likely. If SBI manages to bounce from the ₹242-₹240 support zone, an upmove to ₹255 or ₹258 is possible. But a break below ₹240 will increase the likelihood of the fall extending to ₹232 or ₹230. The region around ₹230 is a crucial medium-term support. A bounce from ₹230 and a subsequent break above ₹260 will keep the broader ₹230-₹350 sideways range intact. But if SBI makes a decisive close below ₹230, the selling pressure would intensify. In such a scenario, there is a strong likelihood of the stock falling to ₹200. As such, the price action in the coming days will need a close watch to give a cue on the next move.

ITC hovers above a key support (₹280.6)

After sustaining at higher levels for most part of the week, ITC fell sharply on Friday, giving back all the gains. The stock was down 2.7 per cent. A key near-term support is at ₹275, which held well last week. If ITC manages to sustain above this support, an upmove to ₹285 or ₹290 is possible in the near term. Inability to breach the resistance level of ₹290 can pull the stock lower again. In such a scenario, a range-bound move between ₹275 and ₹290 can be seen for some time. But if ITC breaks above ₹290, the downside pressure will ease. Such a break will then take the stock up to ₹298 and ₹300. On the other hand, if ITC breaks below the support level of ₹275, it can initially fall to ₹270. A further decisive break below ₹270 will increase the likelihood of the fall extending to ₹260 or ₹255 over the medium term. Traders can hold the long positions at ₹283 and ₹280. Retain the stop-loss at ₹273. Revise the stop-loss higher to ₹285 as soon as the stock moves up to ₹289.

Infosys confirms a trend reversal (₹633.5)

Infosys plummeted over 7 per cent last week, breaking below the crucial support level of ₹670. The sharp fall below ₹670 confirms the trend reversal, which we have been cautioning in this column over the last few weeks. The stock currently hovers above a key ₹630-₹625 support zone. If it manages to sustain above it, a corrective rally to ₹670 or ₹680 is possible. However, the overall downtrend will remain intact and fresh sellers are likely to emerge at higher levels. As such, a further rally beyond ₹680 looks unlikely. An eventual break below ₹625 will then increase the likelihood of the stock extending its downmove to ₹600 and ₹590 in the coming weeks. Traders can hold the short positions taken at ₹685 and ₹695. Revise the stop-loss lower to ₹640 for the target of ₹620. Move the stop-loss lower to ₹630 as soon as the stock moves to ₹625. Also, fresh short positions can be initiated on rallies at ₹670 and ₹675. Stop-loss can be placed at ₹710 for the target of ₹600.

Resistances can cap the upside in RIL (₹1,044.7)

RIL fell for the second consecutive week. The stock tumbled over 5 per cent in the past week, breaking below the crucial support level of ₹1,050. The bias remains negative on the charts. The 21-day moving average is on the verge of crossing below the 100-day moving average. This is a negative indicator signalling that the upside could be limited. Near-term resistance is at ₹1,085. The next significant resistance is in the ₹1,125-₹1,130 region. The downside pressure will ease only if RIL manages to surpass ₹1,130 decisively. But such a strong upmove looks less probable. As long as the stock traders below ₹1,085, there is a strong likelihood of it testing the psychological support level of ₹1,000. A break below ₹1,000 can take RIL lower to ₹980 or ₹975. Short-term traders with a high-risk appetite can go short on rallies at ₹1,075 and ₹1,085. Stop-loss can be placed at ₹1,125 for the target of ₹980. Revise the stop-loss lower to ₹1,060 as soon as the stock falls to ₹1,020.

Near-term outlook is unclear in Tata Steel (₹551.1)

Tata Steel fell over 3 per cent intra-week and made a low of ₹535.3. However, it managed to claw-back from the lows, recovering most of the loss, and has closed on a flat note for the week. The near-term outlook is mixed. Immediate resistance is at ₹560. A break above it can take the stock initially higher to ₹570. A further break above ₹570 will increase the likelihood of the upmove extending to ₹585 or ₹590. On the other hand, if Tata Steel fails to breach ₹570, it can reverse lower towards ₹540 and ₹535 again. In such a scenario, a range-bound move between ₹535 and ₹570 is possible for some time. The stock will come under renewed pressure on a strong break below ₹535. Such a break can drag it lower initially to ₹500. A further break below ₹500 will then target ₹480 and ₹470 over the medium term. Traders can hold the short positions taken at ₹553. Accumulate more shorts at ₹560 and ₹570. Retain the stop-loss at ₹590 for the target of ₹500.

Index Outlook: Bellwethers poised at key supports

In the coming week, the continuation of the September quarter results and October auto sales data are key events on the domestic front. On the international front, the Bank of Japan meeting and US jobs data are some major events. Read more

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