The market extended the rally to the sixth consecutive session on October 14 in a holiday-shortened week led by IT majors who posted good numbers for the second quarter. Easing inflation data and buying in the banking and metal names also added fuel to the rally.
At close, the Sensex was up 568.90 points, or 0.94 percent, at 61,305.95 and the Nifty was up 176.70 points, or 0.97 percent, at 18,338.50.
The Sensex and Nifty50 indices touched fresh record highs of 61,353.25 and 18,350.75 during the day. For the week, both indices added 2 percent each.
The market will remain shut on October 15 on account of Dussehra.
“The Indian market sustained its upbeat mood supported by a positive global market, favourable inflation data and up move in IT stocks following strong earning scorecards by sector majors,” said Vinod Nair, Head of Research at Geojit Financial Services.
India’s September retail inflation eased sharply to 4.35 percent against 5.30 percent in August on a drop in food price, while wholesale inflation stood at 10.66 percent compared to 11.39 percent in the previous month, he said.
“Banking stocks also contributed to the rally and remained in focus as the sector is set to kickstart its earnings season,” he added.
Adani Ports, Wipro, Grasim, ITC and HDFC Bank were among major gainers on the Nifty. Losers included Coal India, Eicher Motors, Tata Motors, HCL Tech and TCS.
Except Nifty Auto, all other sectoral indices ended in the green. Nifty Bank, IT, Infra, Metal and PSU Bank added a percent each.
The broader indices BSE midcap and smallcap added 0.5 percent each.
Stocks and sectors
On the BSE, the auto index fell 0.7 percent, bank, capital goods, metal, power and realty indices were up 1 percent each.
Among individual stocks, a volume spike of more than 400 percent was seen in IRCTC, India Cements and Mindtree.
Long buildup was seen in IRCTC, JK Cement, REC, while short buildup was seen in HCL Technologies, Dalmia Bharat and TCS.
More than 300 stocks, including Wipro, Union Bank of India and Godrej Properties, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bullish candle on the daily scale and continued to form higher lows.
On the weekly frame, it gave a range breakout and formed higher lows eleventh week in a row.
“Now, it has to hold above 18,250 zones to extend its move towards 18,500 levels, whereas on the downside, support is seen at 18,050 and 17,947 zones,” said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Market Outlook for October 18
Sachin Gupta, AVP-Research at Choice Broking
On the technical chart, the Nifty has been trading above the Rising Trendline Breakout, which indicates a bullish trend in the counter.
Daily momentum indicators Stochastic and MACD have shown positive crossover on the daily chart, which supports bullish momentum.
The price also moved above the upper Bollinger Band formation, which suggests that the bullish rally may continue further.
At present, the index has immediate support at 18,050, while an upside move is expected till 18,500.
Rohit Singre, Senior Technical Analyst, LKP Securities
The index closed the week at 18,339 with gains of two and half percent and formed a bullish candle on the weekly chart for the second consecutive week.
Immediate supports are now near 18,250 followed by 18,170 zone and any dip will be again a fresh buying opportunity for the overall target of 18,500 zone.
The immediate hurdle is coming near 18,400-18,500.
Mohit Nigam, Head- PMS, Hem Securities
On the technical front, the benchmark index witnessed a continuous positive trend after sustaining well above 18,200.
According to our technical analysis, this positive momentum may continue till 18,500 levels in the coming sessions. Immediate support for the Nifty 50 is 18,200.
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