MUMBAI: The stock market wrapped up the trading session on Tuesday with a buoyant performance, witnessing a strong finish led by positive momentum in the midday and end of the session.
The Nifty index, which initially opened on a flattish note, navigated a narrow band in the first half before rallying upwards later in the day.
Options data indicates a broader trading range between 19600 to 20000 zones, with an immediate range of 19700 to 19900 zones. The weekly scenario reveals Maximum Call Open Interest (OI) at 19900, followed by 20000 strikes, while Maximum Put OI is observed at 19800, then 19700 strikes.
Call writing is evident at 19800 and 19900 strikes, whereas Put writing is visible at 19800 and 19650 strikes.
The benchmark indices displayed a positive trend, with the Sensex closing 204.76 points higher at 66,174.20, and the Nifty gaining 95.00 points to conclude at 19,889.70.
Among the Nifty companies, 39 witnessed advances, while 11 experienced declines.
In the Nifty category, Adani Enterprises, Adani Ports, Tata Motors, BPCL, and Coal India emerged as the top gainers, contributing to the market’s upward trajectory.
Conversely, Cipla, Apollo Hospitals, Hindustan Unilever, Sun Pharma, and ITC faced declines in today’s trading session.
Varun Aggarwal, founder and managing director, Profit Idea, said, “In today’s trading session, the benchmark equity indices closed positively. The NSE Nifty 50 surged by 95 points or 0.48 per cent to settle at 19,889.70, while the BSE Sensex jumped by 204 points or 0.31 per cent to reach 66,174.21. The broader indices mostly ended on a positive note, with Midcap and Smallcap stocks leading the gains”.
Aggarwal added, “The Bank Nifty index also saw an increase of 111.85 points or 0.26 per cent, settling at 43,880.95. Notably, Oil&Gas and Auto stocks outperformed other sectoral indices, while Healthcare and Pharma stocks experienced declines. Top gainers on the NSE Nifty 50 included Adani Enterprises, Adani Ports and SEZ, Tata Motors, BPCL, and Coal India, while the laggards were Cipla, Apollo Hospitals, Hindustan Unilever, Sun Pharma, and ITC. The Indian Volatility Index (India VIX) closed up by 7.45 per cent”.
The broader market indices, including Midcap and Smallcap stocks, closed on a positive note, while the Bank Nifty index saw an increase of 111.85 points or 0.26 per cent, settling at 43,880.95.
Notably, sectors like Oil and gas and Auto outperformed others, while Healthcare and Pharma sectors observed declines.
The Indian Volatility Index (India VIX) concluded the session with a rise of 7.45 per cent, indicating a certain level of volatility in the market. Traders globally are closely monitoring economic data, including indicators such as the Fed’s preferred measure of underlying inflation.
Aggarwal said, “On the global front, traders are closely monitoring economic data, including the Fed’s preferred measure of underlying inflation. In the US, new house sales declined in October, influenced by elevated mortgage rates. In Asia, concerns persist about China’s economic recovery, with industrial profits growing at a slower pace due to ongoing deflationary pressures. The repercussions of a criminal probe into Zhongzhi Enterprise Group Co., a significant player in shadow banking, continue, with potential investor losses estimated at USD 56 billion by some legal experts”.
“European shares wavered after the latest economic data highlighted Germany’s struggle to recover from an energy-induced downturn last winter and the mounting impact of higher borrowing costs. We remain positively biased on the Indian economy for the medium term. Short-term support on Nifty lies at 19276 and major support lies at 18837. Nifty has shifted in a broader range of 20000-19500 levels. The medium-term target of Nifty remains at 20466-21234-21410”, said Aggarwal.
In the US, new house sales declined in October due to elevated mortgage rates.
Concerns persist in Asia about China’s economic recovery, with industrial profits growing at a slower pace due to ongoing deflationary pressures.
The European market exhibited wavering trends as Germany struggled to recover from an energy-induced downturn, while higher borrowing costs impacted the region.
Despite short-term support levels at 19276 and major support at 18837, the Nifty is observed to be within a broader range of 20000-19500 levels.
The medium-term target for Nifty remains optimistic, ranging between 20466-21234-21410. While volatility has slightly cooled off, momentum appears to be lacking.
Aggarwal stated, “Volatility slightly cooled off and comforted the bulls but momentum was clearly missing. We expect the IT, Banking, Pharma, FMCG, Petrochemicals, and Metals sectors to do good. Bullish bias risk-defined strategies are best for traders. Expect higher targets to hit on Nifty”.
Market experts anticipate positive performances in the IT, Banking, Pharma, FMCG, Petrochemicals, and Metals sectors, suggesting a bullish bias with risk-defined strategies deemed favourable for traders.
As the market progresses, higher targets are expected to be achieved on Nifty, reinforcing a positive outlook for the medium term. (ANI)