What Happened With Market Today

Equity benchmark Sensex rebounded 454 points on the November expiry series, recovering entirely from yesterday’s losses, boosted by gains in index heavyweight Reliance Industries, amidst a positive trend in global markets and short covering. Markets opened on a mixed note following mixed Asian market cues as investors digested Bank of Korea raising rates along with the resurgence of COVID-19 cases in Europe.

Sensex ended 454 points or 0.80 percent higher at 58,795. Similarly, Nifty surged 121 points or 0.70 percent to close at 17,536. Reliance Industries was the top gainer in the Nifty pack, soaring over 6 percent, followed by Divis Labs, ITC, Infosys, and Tata Consumer Products while Maruti, Britannia, IndusInd Bank, Indian Oil, and Hindustan Unilever were top laggards. Tech, Pharma, realty, hospital, and telecom stocks were major gainers while Auto and banking stocks witnessed profit booking.

There was short covering which lifted the market on account of November expiry day. Moreover, the European market and US Future rose following data confirming a strong US economic recovery. US market will be shut today on account of the Thanksgiving holiday. Among sectoral performances, IT (up 1%) followed by pharma, realty (up 2%), and metal indices traded in positive, while heavyweight financial services continued to see selling pressure. Midcap and smallcap indices underperformed broader index today, while volatility index mostly ended flat.

Reliance gained 6% to close at Rs2493 amid 2cr shares traded on NSE after the news that the company has decided to transfer its gasification unit to its newly created subsidiary Reliance Syngas Limited (RSL) on a slump sale basis. RSL is a company incorporated under the Companies Act, 2013 on November 1, 2021. RIL has invested Rs10,00,000 in cash in 1,00,000 equity shares of Rs10 each of RSL.

Pharma stocks witnessed fresh buying. The Sputnik Light Covid-19 vaccine will be launched in India by December, Kirill Dmitriev, CEO, of the Russian Direct Investment Fund (RDIF) was quoted as saying by ANI. In India, the Hyderabad-based Dr Reddy’s Lab is the sole distributor of Sputnik V under an agreement with the RDIF. Dr Reddy ended flat at Rs4591. Laurus Labs surged 6% to close at Rs637. Glaxo climbed up by 8% to close at Rs1757.

Telecom stocks gained after tariff hike by telecom major Idea and Bharati Airtel. Vodafone tariff hiked by 20% which has been implemented from today. It has gained 6% to close at Rs11.7. Bharti Airtel gained 1% to close at Rs765 after the news that the company successfully conducted India’s first 5G trial in the 700 MHz band in partnership with Finnish telecom company Nokia.

Among the auto stocks, Maruti slipped 1% to close at Rs7572 on account of profit booking. Hero moto Corp, Ashok Leyland, and Eicher Motor declined by 1% each. Banking stocks witnessed a mixed bag. ICICI Bank slipped 1% to close at Rs751. Both IndusInd Bank and Axis Bank declined 1% each. However, Bandhan Bank, Kotak Bank, and HDFC Bank gained nearly 1-2%.

Realty stocks witnessed fresh buying. The prestige gained 7% to close at Rs467 and Brigade climbed up by 5% to close at Rs505. Godrej Property, Lodha, and Phoenix Mill gained 1-2%. Tech stocks witnessed fresh buying. Coforge surged by 2% to close at Rs5502. Infosys gained 1.5% to close at Rs1722. Tech Mahindra, LTTS, and Mphasis gained 1% each.

Technical Outlook:

Nifty index opened flattish and after a slight dip in the initial tick, it rebounded above 17550 levels. Buying interest was seen on the decline and it closed near its day’s high levels with gains of around 120 points. It formed a Bullish Inside bar sort of candle on a daily scale. Now till it holds above 17500 zones, it can move upwards to 17600 and 17777 zones whereas support can be seen at 17350 and 17200 zones.

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