Sensex slips off day’s highs, closes 276 points up; Nifty above 11,500

The Indian market ignored muted global cues and rising coronavirus infections to rally on October 5 riding high on buyback news from the IT major TCS and green shoots in the economy.

The S&P BSE Sensex gave up gains towards the close of the session but still rallied nearly 300 points while the Nifty50 reclaimed 11,500.

The S&P BSE Sensex ended the day 276 points higher at 38,973 while the Nifty50 gained 86 points to close at 11,503.

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“Markets opened firmly in the green with TCS buoyed by the buyback news leading the charge ahead of its earnings and well supported by the IT sector today,” S Ranganathan, Head of Research at LKP Securities told Moneycontrol.

“Selective stocks in pharma and textiles witnessed buying interest from smart investors even as indices gave up some gains in late afternoon trade,” he said.

Sectorally, action was seen in IT, metals, healthcare and Bankex while mild profit-taking was seen in telecom, utilities, consumer durables, and the energy space.

On the broader markets front, the S&P BSE midcap index fell 0.18 percent while the smallcap index closed with gains of 0.38 percent.

Top Nifty gainers included Sun Pharma, Wipro, and TCS.

Top Nifty losers included Bharti Airtel, Shree Cements, and Bajaj Finserv.

Stocks & sectors

Sectorally, the S&P BSE IT index rose 4 percent followed by the metal index that was up 2.3 percent and the healthcare index ended with gains of 1.4 percent.

Profit-taking was seen in the S&P BSE telecom index that fell 1.2 percent. The BSE utilities that was down 0.5 percent and the consumer durables index fell 0.4 percent.

A volume spike of more than 100 percent was seen in stocks like HCL Tech, Marico and Wipro.

Long buildup was seen in stocks like TCS, Cadila Healthcare and Godrej Properties.

Short buildup was seen in stocks like Escorts, Balkrishna Industries and Hero MotoCorp.

Info Edge, Hero MotoCorp, Infosys, Wipro and TCS were among more than 100 stocks on the BSE to hit a fresh 52-week high.

Technical View

The Nifty50 formed a small-bodied candle on the daily charts. It closed above the crucial short-term and long-term moving averages.

If the index fails to hold 11,452, then it can come under selling pressure. If it sustains above 11,452, a range-bound trade in the 11,600–452 zone can be expected in the next session, experts said.

“A close above 11,620 can strengthen bullish sentiment further by opening up new targets which can be close to 11,800,” Mazhar Mohammad of Chartviewindia.in said.

“Therefore, for the time being, traders are advised to avoid fresh long positions in index, whereas positional traders, who are already long, should place a tight stop below 11,450 levels,” he said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.