Terrific Thursday! Sensex back above 40,000; Nifty reclaims 11,800

Indian market witnessed its sixth consecutive day of gains on October 8 as bulls pushed benchmark indices beyond crucial resistance levels. The S&P BSE Sensex reclaimed 40,000 for the first time since February 25 while Nifty closes above 11800.

Let’s look at the final tally on D-Street – the S&P BSE Sensex witnessed profit booking at higher levels but still closed with gains of more than 300 points at 40,182 while the Nifty50 rose 95 points to close at 11,834.

Robust results from TCS and subsequent announcement of a buyback lifted sentiment and pushed most of the other stocks to a fresh 52-week high. But, now all eyes are on the outcome of the MPC meeting on Friday.

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“The robust results from the IT major, TCS, boosted the sentiment and that reflected in other IT majors too. Participants will now be eyeing the outcome of the MPC’s policy meet scheduled tomorrow i.e. 9th October,” Ajit Mishra, VP – Research, Religare Broking Ltd told .

“It is widely expected that RBI would maintain the status quo on rates however, the commentary on growth, moratorium and inflation would be actively tracked. Further, stock-specific volatility would remain high as more companies would announce their quarterly numbers,” he said.

Sectorally, the action was seen in IT, Healthcare, Telecom, and bankex while the selling pressure was seen in Energy, Oil & Gas, and Capital Goods stocks.

On the broader market front – the S&P BSE Mid-cap index rose 0.29 percent while the S&P BSE Small-cap index closed with marginal losses of 0.26 percent.

Top Nifty gainers include names like TCS, Cipla, and Wipro.

Top Nifty losers include names like ITC, ONGC, and GAIL India.

Stocks & Sectors:

Sectorally, the action was seen in the S&P BSE IT index which rose nearly 3 percent, followed by the S&P BSE Healthcare index which was up 1.5 percent, and the S&P BSE Telecom index was up 1.09 percent.

Profit taking was seen in the S&P BSE Energy index which fell 0.8 percent, followed by the S&P BSE Oil & Gas that fell 0.69 percent, and the S&P BSE Capital Goods index was down 0.5 percent.

Volume spike of more than 100% was seen in stocks like Voltas, Wipro, and Vedanta.

Long Buildup was seen in stocks like MindTree, Wipro, and Motherson Sumi.

Short Buildup was seen in stocks like RBL Bank, Vedanta, and GAIL India.

More than 100 stocks on the BSE hit a fresh 52-week high that include names like Hero MotoCorp, L&T Infotech, TCS, and Apollo Hospitals.

Technical View:

Nifty foermed a ‘Doji’ kind of candle on daily scale

The Nifty index opened positive led by buying interest in Technology stocks and headed towards 11900 zones. However, it witnessed a decline of around 100 points from higher levels in last hour of the session but continued its winning streak for sixth consecutive session.

Index continued its formation of higher lows for ninth trading sessions and entire base of the market is shifting higher to hit the psychological 12k and to knock the life time high territory.

The Nifty tested 11900 zones during the day and give a highest daily close in last 143 trading session since 24th Feb 2020.

“Index has been moving northward and soared more than 1000 points in last ten trading sessions but overall set up remains bullish and any small decline could be bought in the market,” Chandan Taparia of Motilal Oswal Financial Services Limited said.

“Now it has to continue to hold above 11700 zones to witness a further up move towards 11900 and 12000 zones while on the downside major support exists at 11600 zones,” he said.