Nifty regains 18,000 but analysts still remain cautious
Premium- Despite a tepid start, Sensex rose over 450 points. Analysts say a move above 18115-18125 band could lead to more upsides
Indian stock markets ended firmly higher today, led by financial and energy stocks. The blue-chip NSE Nifty 50 index ended up 0.85% at 18,068.55, while the benchmark S&P BSE Sensex gained over 450 points to 60,545.61.
Shares of Pfizer's India unit gained as much as 8.3% after its parent said on Friday that the company's experimental COVID-19 antiviral pill cut by 89% the chance of hospitalization or death for adults at risk of severe disease. On the other hand, Divi's Laboratories, which makes the active pharmaceutical ingredient for generic versions of Pfizer rival Merck's COVID-19 antiviral pill, fell as much as 8.8%.
"The markets rose to post its tepid opening and we have managed to close above the 17950-18000 level, which is a positive sign. This needs to be maintained for a couple of sessions and that would then open the doors for the index to scale higher towards 18400-18500. Since good support lies around the 17550-17600 level, dips can be utilized to accumulate long positions," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Titan was the top gainer in the Sensex pack, rising over 4%, followed by UltraTech Cement, Bajaj Finserv, Tech Mahindra, Kotak Bank and HDFC. On the other hand, IndusInd Bank was the top loser in the Sensex pack, tanking over 10% after after the lender admitted to having disbursed 84,000 loans without customer consent in May owing to a "technical glitch".
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: “On intraday charts, the index has formed a promising higher bottom formation and also formed long leg Hammer candlestick formation. However, the key concern is that the Nifty is still trading below 20 day SMA or below 18100. We are of the view that 18100 would be the next intraday breakout level for the day traders and above the same the uptrend momentum will continue up to 18150-18200. On the flip side, a strong support is seen near 17900, and if it slips below the same the uptrend would be vulnerable."
The Nifty energy index rose 1.50%, led by gains of between 2.9% and 7.4% in Bharat Petroleum, Hindustan Petroleum and Indian Oil.
“World shares steadied near record peaks on Monday as risk assets found support from an upbeat U.S. October payrolls report, but they face another test later in the week from a reading on U.S. inflation. Nifty advanced for the second straight day with higher volumes and positive advance decline ratio. A move above 18115-18125 band could lead to more upsides while 17947-17970 is a support band for the Nifty in the near term," said Deepak Jasani, Head of Retail Research, HDFC Securities. (With Agency Inputs)
MINT PREMIUM See All
Never miss a story! Stay connected and informed with Mint. Download our App Now!!