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  Business   Market  30 Oct 2019  Nifty finally crosses a stubborn hurdle

Nifty finally crosses a stubborn hurdle

THE ASIAN AGE. | RAVI RANJAN PRASAD
Published : Oct 30, 2019, 2:06 am IST
Updated : Oct 30, 2019, 2:06 am IST

The broader market too rallied with the BSE Mid Cap Index up 1.12 per cent and BSE Small Cap Index up 0.55 per cent.

Positive domestic and global cues led to huge rally in the market as it opened after a long weekend, The Sensex gained 1.48 per cent, or 581.64 points, closing at 39,831.84. The Nifty-50 gained 159.7 points, or 1.37 per cent, to close at 11,786.85.
 Positive domestic and global cues led to huge rally in the market as it opened after a long weekend, The Sensex gained 1.48 per cent, or 581.64 points, closing at 39,831.84. The Nifty-50 gained 159.7 points, or 1.37 per cent, to close at 11,786.85.

Positive domestic and global cues led to huge rally in the market as it opened after a long weekend, The Sensex gained 1.48 per cent, or 581.64 points, closing at 39,831.84. The Nifty-50 gained 159.7 points, or 1.37 per cent, to close at 11,786.85. Foreign portfolio investors were net buyers of equities worth Rs 876.64 crore while domestic institutions bought equities worth Rs 144.75 crore.

The broader market too rallied with the BSE Mid Cap Index up 1.12 per cent and BSE Small Cap Index up 0.55 per cent.

 

Among the sectoral indices the BSE Auto and Metal indices gained 4.25 per cent and 4.19 per cent respectively reacting to good Diwali sales and US –China trade deals moving in a positive direction. Other sectoral gainers included BSE IT(1.70 per cent), Capital Goods(1.45 per cent),Oil& Gas(1.23 per cent) and Bankex(1.09 per cent).

Telecom shares fell, leading to 4.39 per cent fall in the BSE Telecom index, over the recent Supreme Court judgement imposing Rs 92,000 crore burden on telecom companies.

Analysts said the market rallied on good demand during Diwali sales reported by retailers and automobile firms as well as news flowing in that government is reviewing equity-related tax rate rationalisation. On the global front too, several positive developments were seen on the horizon like US–China trade deal optimism, Brexit deadline extension, good earnings show by S&P companies, interest rate cut expected by the US Fed in the upcoming meeting.

 

Technical View

Sameet Chavan, chief analyst-Technical and Derivatives, Angel Broking said, "Since last few sessions days, the Nifty has been struggling to surpass the sturdy wall of 11,700 and on Tuesday finally, we managed to see a decisive price action beyond this crucial hurdle. Undoubtedly, it was evident to have such intraday rally after crossing 11,700 and within no time, we hastened towards the next psychological junction of 11,800. We remain sanguine for the next immediate level of 11,900 first and then a march towards 12,000 is very much on cards now."

“Technically, the short term uptrend of the Nifty still remains intact. Further upsides are likely once the immediate resistance of 11,824 is taken out. Crucial supports to watch for resumption of weakness are at 11,708-11,632,” HDFC Securities said.

 

Market View

Deepak Jasani, Head of Retail Research, HDFC Securities said, "Markets ended with hefty gains on Tuesday, with the Nifty breaking out of its recent highs after a period of consolidation, to close above the 11,700 levels. Sources indicated that the government is reviewing equity-related tax rate rationalisation. This boosted investor and trader sentiments."

Ashish Nanda, executive vice president & business head - PCG, Kotak Securities said, “Globally, trade deal between US and China is increasing optimism, delay in Brexit decision till January will also remove uncertainties in the medium term, one more rate cut expectations from Federal Reserve during this week’s meeting and above expectations quarterly performance from S&P companies could cheer the market sentiment.”

 

Tags: sensex, diwali sales