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Taking Stock | Sensex gains 296 points on Muhurat day of Samvat 2078, Nifty forms bearish candle

The market had a strong start for Samvat 2078 as the benchmark indices gained half a percent on November 4, the Diwali Muhurat Trading Day 2021, driven by ownership wideness sectors (barring metals). Even the broader markets participated in the run with fall in volatility.

At close, the BSE Sensex stood whilom 60,000 mark, rising 295.70 points to 60,067.62, while the Nifty50 jumped 87.60 points to 17,916.80 and worked small surly candle on the daily charts as the latter levels are lower than opening.

On the Diwali Laxmi Pujan day, investors turned richer by Rs 1.93 lakh crore as the BSE market capitalisation increased to Rs 265 lakh crore on Thursday, up from Rs 263.07 lakh crore in the previous session.

Experts finger the upward momentum is likely to protract in the Samvat 2078 as well, but the pace of rally may not be similar to Samvat 2077 due to expected inflation concerns and Fed tapering. BSE Sensex had gained 36 percent and the Nifty50 surged 40 percent in Samvat 2077.

“After a unconfined year for probity markets, investors are looking forward to markets protract rising though not at the same pace. Global headwinds in the form of rising inflation and withdrawal of monetary stimulus may impact the momentum, but strength in Indian macros and improving micros may help offset these,” said Dhiraj Relli, MD & CEO at HDFC Securities.

Investors need to self-mastery portfolio review, windfall typecasting review, and raise the quality of stocks held in their portfolio, Relli well-considered on muhurat trading day.

Mahindra & Mahindra and ITC were leaders in the BSE Sensex, gaining 3.1 percent and 2.1 percent, respectively. Bajaj Auto, L&T, Kotak Mahindra Bank, Nestle India and Sun Pharma gained 1-1.65 percent.

However, ICICI Bank, Asian Paints, UltraTech Cement and Dr Reddy’s Labs were only losers, latter with moderate losses.

Among sectors, FMCG, Industrials, Auto and Capital Goods were top gainers, rising increasingly than 1 percent each.

The broader markets outpaced frontline indices. The BSE Midcap tabulate jumped 0.81 percent and Smallcap tabulate gained 1.5 percent.

Top gainers in the futures & options segment were Indian Hotels, Eicher Motors, City Union Bank, Delta Corp and Mahindra & Mahindra, rising 3-6 percent. However, Gujarat State Petronet, Hindalco Industries, Chambal Fertilizers, ICICI Bank and Metropolis Healthcare.

Technical View

The Nifty50 worked surly candle which resembles a bit of Doji kind of pattern insemination on the daily charts, indicating some indecisiveness among the bulls and the bears.

“We protract to remain cautious on the market considering of few technical developments, they are as follows: 1) the ‘Lower Top Lower Bottom’ on daily orchestration got confirmed last Friday without breaking unelevated 18,000, 2) this coincided with the violation of the key short term moving stereotype of ’20-day EMA’, which is now vicarial as a sturdy wall, and 3) increasingly importantly, if we take a glance at the monthly chart, we can see a insemination of ‘Shooting Star’ pattern, which certainly does not bode well for the bulls,” said Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One.

He well-considered traders not to siphon aggressively bets on the long side as long as the tabulate remains unelevated 18,000 – 18,100 on a latter basis.

“On the flipside, we may see this touching-up move extending towards 17,450 first and if things worsened then the possibility of sliding towards 17,200 – 17,000 cannot be ruled out. The coming week would be quite crucial for the market as it may dictate the near term direction,” Chavan said.

Bank Nifty moreover worked surly candle on the daily charts as the latter was lower than opening levels. The tabulate was up 171.65 points at 39,573.70.

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