The Indian market snapped its four-day losing streak on October 4 as buying across the sectors saw the Sensex and the Nifty gain 0.91 percent each. The Sensex closed 534 points higher at 59,299.2 and the Nifty jumped 159.30 points to 17,691.30.
After week-long consolidation, the Indian market was back in action despite unfavourable global sentiment, Vinod Nair, Head of Research at Geojit Financial Services.
“The momentum is driven by the expectation of better Q2 earnings backed by recovery in economic activity, second wave fallout not being severe and in anticipation of a better outlook from festival demand,” he said.
“The IT sector was under consolidation before the start of quarterly results, which has led to a marginal uptick, as major companies are scheduled to announce their results, which can emerge as an opportunity if the results are in line with the robust outlook.”
Jain said the Reserve Bank of India’s monetary policy meeting on October 8 was another event being keenly watched by the market, which was expecting status quo.
Divis Labs, Hindalco Industries, NTPC, Bajaj Finserv and Tata Motors were among the major gainers on the Nifty. Cipla, Grasim Industries, UPL, Eicher Motors and IOC were among the big losers.
The broader market— BSE midcap and smallcap indices— outperformed the benchmarks, with each rising 1.5 percent.
Nifty metal, pharma, energy and PSU Bank indices rose 1-3 percent.
Stocks & sectors
On the BSE, all the sectoral indices ended higher, with realty, metal and power sectors rising 2 percent each. Capital goods and healthcare indices gained over a percent each.
Among individual stocks, a volume spike of more than 400 percent was seen in Divis Laboratories, Eicher Motors and Astral.
Long buildup was seen in Dalmia Bharat, Persistent Systems and JK Cement, while short buildup was seen in Cummins India, Delta Corp and Crompton Greaves Consumer Electrical.
More than 200 stocks, including Bata India, Tata Power, Hindlaoc Industries and Divis Laboratories, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bullish candle on the daily scale and negated its lower highs formation of the last five sessions.
“Now, it has to hold above 17,700 for an up move towards 17,777 and 17,850 levels, whereas support is seen at 17,580 and 17,450 zones,” said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for October 5
Sachin Gupta, AVP, Research, Choice Broking
The Nifty had a gap up opening but showed a 100 points profit-booking from its day’s high of 17,750.1 and ended at 17,691.25
On the technical front, the index settled above the 20-day moving average which indicates an upside journey. The stochastic has given positive crossover which, too, suggest a positive trend.
On the hourly Chart, the index took support from 21- EMA and sustained above it, suggesting strength for the upside. The parabolic SAR, another technical indicator, formed below the candles, indicating bullish momentum.
The index has immediate support at 17,580 and resistance at 17,950.
Mohit Nigam, Head, Hem Securities
Bulls made their presence felt when the market saw a positive up-move after the Nifty sustained above 17,600 and closed 1 percent higher at 17,691.
At close, the Sensex was up 533.74, or 0.91 percent, at 59,299.32, the Nifty was up 159.30, or 0.91 percent, at 17,691.30. The Bank Nifty, too, gained 353.80 points, or 0.95 percent, at 37,579.70.
The Nifty50 should find near-term support near 17,615, while resistance level could be 17,830.
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