What happened with the Share Market Today

The equity benchmark index gained nearly 150 points in the fourth straight session helped by buying in index majors Reliance Industries and HDFC twins. The market was highly volatile today. Sensex gained rose by 147 points or 0.25 percent to settle at 59,107. During the day, it rallied 439 points or 0.74 percent to 59,400. Nifty advanced 25.30 points or 0.15 percent to end at 17,512 while touching an intra-day high of 17473. From the Nifty pack, Nestle, HDFC, Axis Bank, Reliance Industries, ITC, and HDFC Bank were the prominent winners. NTPC, JSW Steel, State Bank of India, Bajaj Finance, HCL Technologies, Infosys, and Maruti were among the laggards. Overall, there was negative market breath due to the Nifty 500 stocks advance-decline ratio being 1:1.2. India Vix ended flat to close at 17.48.

As concern of USDINR spiked to a record high of nearly 83 and the UK September Inflation surged to a 40-year high of above 10% has a negative impact on the markets. US Dow Future fell to negative territory after an intra-day gain of nearly 1%. The expectation is that the higher inflation may setback in global growth. Moreover, the market hopes the US Fed to aggressive interest rate hikes in the next policy November policy meeting. Overnight, the US market climbed up by 1% due to a fall in US bond yield, and Dollar Index fell to a 2-week low below the 112 level. Moreover, strong quarterly results announced by Goldman and Netflix boosted the US market. Today, Asian markets fell from the intra-day high and European markets are witnessing a mixed bag as investors questioned whether corporate earnings would be resilient enough to withstand the impact of hawkish central banks on account of record-high US and Eurozone inflation.

Back home, with impressive corporate results, India Vix fell to below 18 and Brent crude declined to a 1-month low having a positive impact on the market.  However, there was stock-specific action in the market due to the impact of the quarterly results announcement.

FMCG stocks gained after Nestle announced impressive Q3 results. It has gained 2% to close at Rs19739. Both ITC and Varun Beverage gained 2% each. Tech stocks declined from the intra-day high. LTTS slipped 5% to close at Rs3495 after it has announced in line with expected Q2 results. HCL Tech, TCS, and Infosys slipped 1% each.

Reliance Industries surged 2% to close at Rs2494 amid a hefty volume of 89 lakh shares traded on NSE. Company added 32.8 lakh subscribers during the month of August. Reliance Jio toppled state-run BSNL in August to become the largest fixed-line service provider in the country, according to a Trai report released on Tuesday.

Private Bank witnessed a smart rally while PSU Bank declined due to profit booking. Axis Bank advanced 2% to close at Rs830. IDFC Bank, Kotak Bank, and HDFC Bank gained 1% each.  However, PSU Banks like Bank of Baroda and SBI slipped by 2% each.

Technical Outlook:

The nifty index opened the gap up by 80 points but witnessed profit booking at higher zones and dropped to 17472 zones. However, it respected its support zones and moved in a range-bound manner in the second half of the session. It formed a small-bodied Bearish candle on a daily scale and closed with gains of 25 points. Now, it has to be above 17442 zones, for an up move towards 17650 and 17777 zones whereas supports are placed at 17350 and 17250 zones.