What happened with the Share Market Today

Indian markets opened positive despite mixed global cues and resumed their positive momentum for the second consecutive day. After the initial strength, Nifty did witness some weakness during mid-day however managed to recover smartly in the last hour of trade to close with gains of 50 points (+0.3%) at 17,787. India’s VIX continued to cool off down 4% and is now below 16 levels. The broader market however witnessed profit booking as were down 0.5%-1.0%. Banking stocks too witnessed some profit booking after RBI called for an additional meeting of its Monetary Policy Committee on 3rd November. Auto stocks were among the major gainers after Maruti reports strong results and ahead of monthly sales data to be released next week for Oct which would include numbers for the Diwali festival.

On the global front, while the US GDP growth of 2.6% annualized was better than expected, weak results from tech-heavy weight impacted sentiments. Nifty has been consolidating around the 17800 zone for last 4 trading sessions after witnessing a sharp up move of more than 800 points in 8 sessions. Strong traction in ongoing domestic earnings, FIIs turning buyers and positive domestic cues can lead the Nifty to reach 18000/18200 levels over the next few days.

Technical Outlook:

The nifty index opened positive and touched 17838 zones in the initial tick after which it faced some resistance at higher zones. It moved in a range-bound manner and picked up in the last hour of the session to close with gains of 60 points. It closed near 17800 and gave the highest closing of the last 26 trading sessions. It formed a small-bodied Bullish candle on the daily and weekly frames. It has been forming higher lows from the last four weeks and buying can be seen at any slight decline. Now, it has to be above 17777 zones, for an up move towards 17900 and 18000 zones whereas supports are placed at 17650 and 17580 zones.