Post Market Analysis of Equity benchmark

Equity benchmark Sensex climbed to its all-time high on Tuesday, tracking unabated foreign capital inflows amid a positive trend in global markets. Last hour buying interest was seen in banking and IT stocks that lifted Sensex over 200 points while recovering nearly 400 from the intra-day low. Sentiments were further boosted on account of smart gains in Asian and European markets along with US Future.

Sensex climbed up by 248 points or 0.4% to close at 61773 while touching an intra-day low of 61437. Nifty gained 74 points or 0.4% to close at above the 18400 mark (18403) while touching an intra-day low of 18282 on a range bound markets today. Bharti Airtel, ONGC, Power Grid, ICICI Bank, and UltraTech Cement were major gainers today. Coal India, Cipla, Grasim, and Bajaj Finance were major losers today. India Vix slipped by 2% to close at 14.63.

Among the global markets, Asian and European markets gained after better-than-expected third-quarter earnings,  US inflation cooling off in October, China’s moves to shore up its economy and the likely to announce financial package in the real estate sectors and a positive meeting between US President Joe Biden and Chinese counterpart Xi Jinping in the G-20 meeting indicated an easing of geo-political tensions. US Future has gained by a half percent. Among the domestic factor October inflation fell to a 3-month low at 6.77% from 7.41 the previous month, single-digit wholesale inflation was reported after 18 months and strong FIIs buying interest boosted market sentiment.

Gas stocks witnessed fresh buying today on account of the attractive valuation after a fall in the last few sessions. Moreover, good quarterly, the hope of price hikes, and the expectation of improved demand lifted gas stocks. Gujarat Gas surged 6% to close at Rs529 and IGL soared 4% to close at Rs434.

Banking stocks witnessed fresh buying. Bank Nifty gained by half a percent. ICICI Bank gained 2% to close at Rs912. Axis Bank, Bandhan Bank, and HDFC Bank bounced back into positive territory. Tech stocks bounced back into positive territory. The nifty IT Index recovered 1.5% from the intra-day low. Tech major Infosys managed to end positive territory at Rs1594 while touching an intra-day low of Rs1573. HCL Tech, Wipro, and Tech Mahindra bounced back into positive territory.

Technical Outlook:

The nifty index opened positive and witnessed some throwback in the initial half of the session. It took support at 18282 and buying interest pulled the index to touch a new 52-week high of 18427. The last hour of the session was overpowered by bulls and it closed with gains of around 75 points. It formed a Bullish candle on the daily frame with a long lower shadow indicating support-based buying and has been forming higher highs from the last three sessions. Now, it has to hold above 18350 zones, for an up move towards 18500 then 18600 zones whereas supports are placed at 18250 and 18188 zones.