Taking Stock: Sensex rallies more than 600 points; Nifty above 11,400 levels

Indian market rose for the second consecutive day in a row on October 1 following the positive trend in Asian markets, and the announcement of Unlock 5 guidelines, and strong August GST collections – highest since March.

The S&P BSE Sensex rallied by more than 600 points while the Nifty50 reclaimed 11400 levels.

Let’s look at the final tally on D-Street - the S&P BSE Sensex rose 629 points to 38,367 while the Nifty50 rose 169 points to close at 11,416.

On a weekly basis, both Sensex and Nifty posted their best weekly gains in the last 3 months.

"The announcement of Unlock 5.0 guidelines gave the markets a temporary boost, and benchmark indices closed higher by more than 1.5%. Positive data indicating resumption and expansion in the pace of the country’s factory output also supported the markets,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“Global indices were also positive on renewed hopes of a US stimulus package which can also ensure continued liquidity for emerging markets like India,” he said.

Nair further added that rising cases of infections, seemingly high valuations, and geopolitical tensions are still a cause for worry for the markets. Next week's cues will again mainly depend on how global markets close out this week.

Sectorally, the action was seen in Bankex, Finance, Telecom, Realty, and Auto stocks while profit-taking was visible in Energy, and Consumer Durable stocks.

On the broader markets front – the S&P BSE Mid-cap index rose 0.7 percent while the S&P BSE Mid-cap index closed with gains of 0.7 percent.

Top Nifty gainers include names like ICICI Bank, Axis Bank, Bajaj Finance, and IndusInd Bank.

Top Nifty losers include names like ITC, Hindalco Industries, and Dr Reddy’s Laboratories.

Stocks & Sectors:

Sectorally, the S&P BSE Bankex was up 3.7 percent, followed by the S&P BSE Finance which rose 3.03 percent, and the S&P BSE Telecom index closed with gains of 2.02 percent.

Volume spike of more than 100% was seen in RBL Bank, Mannapuram Finance, and Bajaj Auto.

Long Buildup was seen in stocks like Bajaj Auto, PVR, and Bajaj Finance.

Short Buildup was seen in stocks like Torrent Power, PNB, and Cummins India.

More than 100 stocks on the BSE hit a fresh 52-week high that includes names like Chemcon Specialty, Blue Dart, and APL Apollo Tube.

Technical View:

Nifty formed a bullish candle on daily charts

The rally in the index can be expected to extend towards its logical target of 11593 levels which is also close to the interim top of 11618 levels, suggest experts.

“If the index registers a sustainable close above the zone of 11593 – 11618 levels then a retest of 11794 can’t be ruled out going forward. Meanwhile, to retain a bullish stance, it remains critical for the bulls to sustain above 11295 levels on the downside as a close below the said support can resume the downswing by signalling the end of pullback swing,” Mazhar Mohammad of Chartviewindia.in said.

“Therefore, as things are looking positive as on today, positional traders can look to buy the dip into the zone of 11360 – 340 levels for a possible target of 11590 with a stop below 11290 levels,” he said.