Sensex rallies 600 points; Nifty50 reclaims 11,600 level

Indian market jumped to a seven-month high on October 6 led by gains in financials, realty, and auto stocks. The S&P BSE Sensex rose 600 points to close at 39,574 while the Nifty50 went past the crucial 11,650 level and ended 159 points higher at 11,662.

Sectorally, the action was seen in finance, realty, Bankex, and auto stocks while mild profit-taking was seen in metals, oil & gas and power stocks.

“The bulls were firmly in control on Tuesday as we saw spirited buying in pivotals as well as in sectors like mortgage & cement. Expectations of relief measures for sectors adversely impacted by the pandemic also lifted investor sentiments in the broader market,” S Ranganathan, Head of Research at LKP Securities told .

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The broader markets underperformed the benchmarks. The S&P BSE midcap index closed with gains of 0.59 percent while the smallcap index closed 0.5 percent higher.

Top Nifty gainers included IndusInd Bank, Adani Ports and HDFC.

Top Nifty losers included Tata Steel, Coal India and Britannia Industries.

Stocks & Sectors

Sectorally, the S&P BSE finance index rose 3 percent, realty index 2.4 percent and Bankex closed with gains of 2 percent.

Profit-taking was seen in the S&P BSE metal index that was down 0.5 percent. The S&P BSE oil & gas index fell 0.2 percent and the power index was down 0.19 percent.

A volume spike of more than 100 percent was seen in stocks like LIC Housing Finance, Dabur India, Tata Motors, and Berger Paints.

Long buildup was seen in stocks like HDFC Life, Chola Finance, Ambuja Cement and LIC Housing Finance.

Short buildup was seen in stocks like Britannia Industries, Exide Industries, and Shriram Transport.

More than 150 stocks on the BSE hit a fresh 52-week high that includes TCS, Asian Paints, MindTree and Infosys.

Technical View

The Nifty formed a strong bullish candle on the daily charts.

If the index sustains above 11,564 on a closing basis, then the bulls should remain hopeful of retesting the corrective swing high of 11,794 registered on August 31, suggest experts.

“However, almost a vertical run-up, from the lows of 10,790, in just seven trading sessions dragged the indices into overbought territory, which can be a cause for concern, though weakness in the indices can be expected only on a close below 11564 levels,” Mazhar Mohammad of told .

“As there are no sell signals, as of now, traders can remain long with a stop below 11,590 levels on a closing basis and look for a target into the 11,750 – 800 levels where they should book profits,” he said.