Taking Stock | Market resumes upward march; Sensex, Nifty rise 4% for the week

Key equity indices Sensex and Nifty resumed their upward march and ended with mild gains on November 13, with banks and financials among top contributors.

The Sensex ended 86 points or 0.20 percent higher at 43,443, and the Nifty rose 29 points or 0.23 percent to close at 12,719.95.

Mid and small-caps outperformed as the BSE Midcap and Smallcap indices closed 0.86 percent and 1.12 percent higher, respectively.

The market was back in the green after a day of pause. Equity benchmarks have posted gains in 9 of the last 10 trading sessions.

For the week, both Sensex and Nifty rose about 4 percent.

Experts expect the market to remain in bullish territory amid the reports around the coronavirus vaccine and improving economic indicators which will underpin the sentiment.

However, analysts advise picking only quality stocks for the short-term.

"Considering the hurdle at 12,800 in Nifty, we suggest focusing on broader markets and advise preferring only quality mid and small-cap counters for short-term trades. At the same time, any dip in the index majors, which are trading in line with the benchmark, should be considered as a buying opportunity," said Ajit Mishra, VP - Research, Religare Broking.

Nifty is slowly moving higher towards 12,900-13,000 levels and analysts see the possibility of the index touching the 13,000-mark soon.

"Nifty is forming a symmetrical triangle on the intra-day chart. It's a bullish continuation formation that would lift the market towards the psychological mark of 13,000. The breadth of the broader market is quite satisfactory, which is indicating a firm grip of bulls and would not allow the Nifty to fall below 12,600 levels in the normal circumstances," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

Stocks & sectors

BSE Teck, Capital Goods, Telecom, Industrials and FMCG ended in the red while the rest all ended with gains.

With a gain of 1.94 percent, BSE Metal ended as the top gainer among the sectoral indices, followed by Realty, Healthcare and Basic Materials, each rising over a percent.

As many as 142 stocks, including UltraTech Cement, Amara Raja Batteries, Grasim Industries, Phillips Carbon Black and Somany Ceramics, hit their 52-week highs on BSE.

Long build-up was seen in stocks such as Apollo Hospitals Enterprise, Eicher Motors, Jubilant FoodWorks and Info Edge.

A volume spike of more than 200 percent was seen in stocks such as Jindal Steel, Eicher Motors, ICICI Lombard General Insurance and Vodafone Idea.

Read more: 10 stocks that moved the most on November 13

Technical View

The index closed above the 12,700 mark and formed a small-bodied bullish candle on the daily charts as closing was higher than opening levels.

Experts feel unless Nifty surpasses and holds 12,850 levels, the 13,000 mark is unlikely in the coming sessions, but given the positive market breadth, the major fall is very much unlikely.

On the weekly scale, Nifty formed a big bullish candle. It is also making a higher top and higher bottom formation on the daily chart which means that the immediate support is now placed at 12,500 levels.

"As long as Nifty trades above 12,500 one should utilize every dip as a buying opportunity and we can expect the further positive momentum to continue towards 12,900-13,000 levels," said Nilesh Ramesh Jain, Derivative and technical analyst- Equity Research.