What happened with the Share Market Today

Equity benchmark Sensex climbed up nearly 700 points taking cues from a turnaround in US stocks which surged by 3% on Thursday and boosted sentiment across the global markets. Overnight, US Dow climbed up by 900 points (3%) and recovered 1500 points from the intra-day low despite the latest data indicating that inflation increased more than expected. There was really in the US equities due to the market being in oversold territory and it technically bounced back after a fall of 25% in the last year. Moreover, investors digested the US Core inflation data that surged to a 40-year high of 6.6%, marginally above estimates of 8.2% (8.1%) while the previous month was 8.3%. Moreover, good quarterly results were domestically announced by Infosys, and September domestic Wholesale Inflation (WPI) fell to a 1-year low having positive sentiment in the market.

After intra-day soaring nearly 1,200 points, Sensex gave up some gains to close 687 points or 1.20 percent higher at 57,920. On similar lines, the broader NSE Nifty climbed 171 points or 1 percent to end at 17,186 while it touched an intra-day high of 17349. IT, financials, auto, and metal stocks were major gainers today. India Vix declined 10% to close at 18.

There was a positive sentiment in the market after tech major Infosys announced better-than-expected Q2 results. Moreover, stable oil prices and strong micro-added fuel market sentiment. Among the global markets, Asian and European markets soared 1-3% as investors looked past hotter-than-expected US inflation, with worries over a hawkish Federal Reserve seen as priced in.

Tech stocks recorded smart gained Infosys reported better than expected Q2 results (Nifty IT Index gained 2%). Infosys surged 4% to close at Rs1474 amid 1.5 cr shares traded on NSE. Persistent Systems, Coforge, LTI, LTTS, and Tech Mahindra gained 1-3%.

Banking stocks witnessed fresh hope of cooling down inflation after WPI data reported to 1-year low and the Federal Bank announced better-than-expected Q2 results. Federal Bank surged 4% to close at Rs130 amid 6.4cr shares traded on NSE. HDFC Bank soared 3% to close at Rs1439 ahead of Q2 results to be announced tomorrow. ICICI Bank, Kotak Bank, and SBI gained between 1-2%.

Among the FMCG stocks, ITC, Nestle, and Tata Consumers gained 1% each. The metal stock declined due to weak global demand. National Aluminium slipped 3% to close at Rs70. Hindalco, Vedanta, and JSW Steel declined 1-2%

Technical Outlook:

The nifty index opened the gap up by around 300 points and moved in a range-bound manner for the first half of the session. However, it gave up half of the intraday gains and slipped below 17171 zones in the last hour of the day to close with gains of around 170 points. It formed a Bearish candle on the daily scale but negated its lower highs formation of the last five sessions. On the weekly frame it formed an Inside Bar and suggests that even though buying could be seen at support zones, follow-up buying is missing at higher zones. Now, it has to be above 17171 zones, for a bounce towards 17333 and 17442 zones whereas supports are placed at 17071 and 16950 zones.