In the holiday-shortened Diwali week, Indian benchmark indices ended with a gain of one percent. After a positive start for the new Samvat 2079 on the Muhurat trading day (October 24), the market remained volatile amid monthly F&O expiry, better US GDP data, Bank of Japan keeping policy balance rate at -0.1%, rate hike by European Central Bank, decent earnings, and FII support For the week, BSE Sensex rose 652.7 points or 1.10 percent to end at 59,959.85 while the Nifty50 added 210.5 points or 1.19 percent to close at 17,786.8 On the sectoral front, Nifty PSU Bank index rose 5 percent, Nifty auto index added 4 percent, and Nifty Oil & Gas index 3.2 percent. On the other hand, Nifty FMCG index lost 0.7 percent For the week, BSE Smallcap index added 0.4 percent, while Midcap and Largecap indices rose 1 percent each While the market continued to stay volatile, Sensex revisiting the 60,000 mark for a brief period indicates that investors are willing to bet on India’s growth story in spite of lingering recession fears in key economies,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities The aggressive rate hike fears by the US Fed seem to be fading for some time, as the falling US Dollar index, declining treasury yields, and benign crude oil prices are turning out to be key.
Technically, the Nifty is consistently facing resistance between 17,800-17,850. Also.
the index is consistently taking support near 17,600 On weekly charts, the Nifty has formed a Hammer kind of candlestick formation, indicating indecisiveness among bulls and bears. In the near future, 17,800 would act as a key resistance zone for traders, and above the same, the index could rally till 18,000-18,100 On the flip side, below 17,600 the selling pressure is likely to increase and could retest the 50-day SMA (simple moving average) or 17,500. Further downside could drag the index till 17,400 During the week, FIIs bought equities worth of Rs 3,986.25 crore while domestic institutional investors (DIIs) sold equities worth of Rs 1,240.47 crore However, in the month of October till now FIIs have sold equities worth of Rs 4,667.67 crore, while DII bought equities worth of Rs 10,384.07 crore The BSE Small-cap index rose 0.4 percent with the following adding 15-31 percent: D-Link India, Infibeam Avenues, Transformers and Rectifiers India, Bharat Bijlee, South Indian Bank, Muthoot Capital Services, J Kumar Infraprojects, Sasken Technologies, Rama Steel Tubes, Tourism Finance Corp of India, Dhani Services, HPL Electric & Power, IIFL Finance, and Ramky Infrastructure The following added 7-13 percent: Sharda Cropchem, Bombay Dyeing, Rajratan Global Wire, KPI Green Energy, Thirumalai Chemicals, CarTrade Tech, Prince Pipes & Fittings, Cantabil Retail India, Monarch Networth Capital, Apcotex Industries, DCM Nouvelle, Ruby Mills, and Metro Brands.
The BSE 500 index gained 1 percent supported by Infibeam Avenues, Tata Motors- DVR, Bank Of India.
IIFL Finance, Multi Commodity Exchange of India, SJVN, Latent View Analytics, Bharat Heavy Electricals, Rail Vikas Nigam, and Indraprastha Gas The domestic market remained flat with a positive bias during the week as favourable local cues were countered by mixed global mood. The US GDP grew 2.6 percent during the September quarter. However, it failed to lift the market as US tech stocks saw a significant sell-off following disappointing quarterly results and a bleak forecast,” said Vinod Nair, Head of Research at Geojit Financial services The European Central Bank raised interest rates by 75 basis points, also signalling that it is making progress in combating record inflation, though the plausibility of a recession grew. The expectation that the central banks would slow down the pace of rate hikes from the beginning of 2023 gave comfort to the global markets As a result, bond yields across the globe softened, with the US 10 year yield diving below 4%. Strengthening rupee along with a softening treasury yield and decent Q2 earnings results will support the domestic market in the near term.”