Indian market picked up momentum on October 16 after falling over 2 percent in the previous trading session. The S&P BSE Sensex rallied by more than 250 points while the Nifty50 reclaimed 11,700 levels.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 254 points to 39,982 while Nifty50 was up 82 points to 11,762.
“The market has lifted marginally after October 15’s deep fall, but the overall trend is still fragile. The market trend has turned weak due to high stock prices in spite of lack of required fiscal support and rising spread of COVID impacting economic recovery,” Vinod Nair, Head of Research at Geojit Financial Services told .
“The quick bounce of the market to above last high and near the pre-COVID level, has brought volatility, which can stay for some time. For Nifty50, strong support is at 11,500, limiting the downside in the near-term,” he said.
On weekly basis, the market snapped 2-week gaining streak as both Sensex, and Nifty50 fell more than 1% each for the week ended October 16.
Sectorally, the action was seen in metals, banks, realty, and utilities while profit-taking was visible in the energy space.
On the broader market front, the S&P BSE Mid-cap index rose 0.8 percent while the S&P BSE Small-cap index closed with gains of 0.6 percent.
Top Nifty gainers include Hindalco, BPCL, Tata Steel, and JSW Steel.
Top Nifty losers include M&M, HCL Technologies, and UPL.
Stocks & Sectors:
Sectorally, the action was seen in the S&P BSE Metal index which was up 2.6 percent, followed by the S&P BSE Bankex that was up 1.8 percent, and the S&P BSE Telecom index gained 1.6 percent.
Volume spike of more than 100% was seen in stocks like JSW Steel, BPCL, and Voltas.
Long Buildup was seen in stocks like Voltas, Coforge, and DLF.
Short Buildup was seen in stocks like UPL, Chola Finance, and Vedanta.
More than 100 stocks on the BSE hit a fresh 52-week high that includes names like Coforge, L&T Technology Services, and JK Cement.
It was a day of consolidation on the bourses as Nifty remained in a range of 120 points before signing off the session with a small bullish candle
Rallies may not sustain but remain vulnerable for a sell off and as long as Nifty sustains above 11661 levels then it can make an attempt to recoup some of the losses by rallying into the zone of 11843 – 885 levels
A breach of 11661 shall not only resume the downswing with initial targets present in the zone of 11500 – 400 levels, Mazhar Mohammad of Chartviewindia.in said.
For time being traders are advised to avoid positional longs but should consider shorting rallies on early signs of weakness, he said.