Taking Stock: Dovish RBI policy boosts market; Nifty closes above 11,900 levels

Indian market rallied for the seventh straight day in a row to hit a fresh 7-month high on October 9 led by financials after Monetary Policy Committee (MPC) announced measures to boost growth even without a rate cut, and kept the stance ‘Accommodative’.

The S&P BSE Sensex rallied over 300 points while the Nifty50 closed above 11,900 levels. However, the broader market underperformed.

Let’s look at the final tally on D-Street – Sensex rose 326 points to close at 40,509 while Nifty50 closed with gains of 79 points at 11,914.

"The dovish monetary policy from the RBI and supportive global cues aided sentiments for the markets as the Nifty index ended higher by 0.8% at 11,932 levels. However, the buying interest was only limited to large caps as broader markets underperformed for yet another day," Ajit Mishra, VP - Research, Religare Broking Ltd told Moneycontrol.

"We feel the recent buoyancy in the banking pack may help the index to inch higher but traders should maintain extra caution in the selection of stocks as we’re seeing limited participation from the index majors. Besides, with the earnings season gaining pace, we can’t rule out the possibility of erratic swings in the stocks," he said.

Sectorally, the action was seen in Banks, Finance, Public Sector, and Capital Goods space while some profit taking was seen in Realty, Healthcare, and FMCG stocks.

On the broader markets front – the S&P BSE Mid-cap index closed 0.4 percent lower while the S&P BSE Small-cap index ended with losses of 0.29 percent.

Top Nifty gainers include names like SBI, Axis Bank, and Wipro.

Top Nifty losers include names like UPL, Hindalco, and Grasim Industries.

Stocks & Sectors:

Sectorally, the action was seen in the S&P BSE Bankex which was up 2.6 percent, followed by the S&P BSE Finance index that fell 1.8 percent, and the S&P BSE Public Sector index was down 1.3 percent.

Profit taking was seen in the S&P BSE Realty index that was down 1.5 percent, followed by the S&P BSE Healthcare index that fell 1.01 percent, and the S&P BSE FMCG index fell 0.69 percent.

Volume spike of more than 100% was seen in stocks like ICICI Bank, L&T, Havells India, and LIC Housing Finance.

Long Buildup was seen in stocks like LIC Housing, Wipro, and M&M Financial.

Short Buildup was seen in stocks like IGL, Tata Consumer, and Tech Mahindra.

More than 100 stocks on the BSE hit a fresh 52-week high that includes names like Hero MotoCorp, Apollo Hospitals, and JK Cement.

Technical View:

Nifty formed a bullish candle on the daily charts

The index continued its formation of higher lows for the 10 trading sessions and the entire base of the market is shifting higher to hit the psychological 12k.

Nifty formed a bullish candle on weekly charts and gave the highest weekly close in the last 31 weeks since 20th Feb 2020.

“Index continued its winning streak for the seventh consecutive session and rallied by more than 1100 points in last eleven trading sessions,” Chandan Taparia, of Motilal Oswal Financial Services Limited said.

“Now it has to continue to hold above 11800 zones to witness a further up move towards 12000 then 12200 zones while on the downside major support exists at 11750 zones,” he said.