What Happened With Market Today

Indian equity benchmarks closed higher for the second consecutive session, led by auto, metals, and consumer durables stocks. Sensex surged 383 points on Tuesday, buoyed by Reliance Industries, Kotak Bank, and Bajaj Finance amid a largely positive trend in global markets and short-covering ahead of the October series expiry this week. The market was highly volatile. Bank Nifty recovered over 1% from the intra-day low of 40829 (high of 41367) after the Kotak Bank announced strong quarterly results. Finally bank Nifty managed to end positive territory to close at 41238. Beaten down, both mid-cap and small-cap stocks bounced back after a sharp decline in the last few sessions.

Sensex ended 383 points or 0.63 percent higher at 61,350. Similarly, the Nifty surged 143 points or 0.8 percent to close at 18,268 while touching an intra-day low of 18099. Tata Motor was the top gainer in the Nifty pack, spurting around 6 percent, followed by Tata Steel, Titan, Bajaj Finance, Nestle India, Hindalco, and Tech Mahindra. On the other hand, IndusInd Bank, ICICI Bank, Power Grid, HUL, Dr Reddy’s, and TCS were among the laggards.

Sentiment boosted on account of the rally in the global market, impressive quarterly results (both Tech Mahindra and Kotak Bank), and strong macro data. Overnight, US stock markets struck fresh records as investors awaited earnings results from tech firms and cheered the latest Tesla surge (shot above $1 trillion in market value) while European markets surged nearly 1% each ahead to an ECB rate decision and the UK budget later in the week. Asian market gained 1% with healthy corporate earnings overshadowing ongoing concerns about inflation.

Among the major Index, Metal Index witnessed the biggest gainer today and climbed up by 3%. Nifty Realty and Auto Index gained 3% and 2% respectively. Nifty IT Index gained half percent. Nifty mid-cap and small-cap index surged 1.5% and 2.5% respectively. Nifty Energy Index gained 1%. Nifty 500 stocks advance-decline ratio 4:1. India Vix declined 5% to close at 16.75.

Auto stocks recorded smart rally led by auto major Tata Motor. Tesla’s Asian suppliers lead advances in EV-related shares after Hertz Global placed an order for 100,000 Teslas in the single-largest purchase ever for electric vehicles. Tata Motor climbed up by 6% to close at Rs509 amid a hefty volume of 5.8cr shares traded on NSE. Both TVS Motor and Ashok Leyland gained 4% each.

Metal stocks recorded a smart rally after Jindal Stainless announced strong quarterly results. The stock gained 14% to close at Rs191. The metal major Tata Steel surged 4% to close at Rs1344. Jindal Steel, JSW Steel, SAIL, Nalco, Vedanta gained 2-4%.

Among the banking stocks, Kotak Bank gained 3% to close at Rs2211cr after announcing Q2 results amid 1.1cr share traded on NSE. Indusind Bank slipped 2% to close at Rs1155. The company will announce Q2 results tomorrow. However, AU Bank gained 5% to close at Rs1261. RBL Bank, PNB, and SBI gained 1-3%. However, Canara Bank slipped 3% to close at Rs195 after announcing Q2 results.

Realty stocks witnessed fresh buying. Lodha climbed up by 9% to close at Rs1059. Brigade, Prestige, Suntech Realty, IB Realty, Oberoi Realty, and DLF gained 3-7%. Among the mid-cap and small-cap stocks like KEI Industries (up 19%), Balrampur Chini, HEG, Graphite, Gujarat Alkalies, Suprajit, and Jindal Stainless gained 7-12%.

Technical Outlook:

The Nifty index opened positive and after a good start, it stooped down to 18100 levels. It rebounded thereafter and follow-up buying was seen led by short covering in many heavyweight stocks. Bulls were seen active during the day and the index closed near its day’s high with gains of more than 140 points. It formed a Bullish candle on a daily scale and negated its lower lows of the last four sessions. Now it has to hold above 18250 levels to witness an up move towards 18350 and 18450 zones while on the downside support exists at 18100 and 17947 marks.

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