Indian stocks posted another closing record today in a recovery rally with global markets bolstered by news that American pharmaceuticals Moderna Inc’s coronavirus vaccine was 94.5% effective in preventing infection. The top-line NSE Nifty 50 Index finished 0.74% higher at 12,874.20, while the benchmark S&P BSE Sensex index closed more than 300 points higher at 43,952.71.
The markets had made modest gains in a special one-hour “muhurat” trading session for Diwali on Saturday, and were closed on Monday. Indian stocks have gained more than 10% so far in November, helped by signs of a recovery in demand, a strong earnings season and higher inflows of funds.
Meanwhile, daily coronavirus infections in the country have also been declining since they peaked in September, with cases in the past 24 hours rising to their lowest level in about four months.
The broader markets outperformed, both mid-cap and small-cap closed up 1.1% and 0.9% respectively. On the sectoral front, metals, capital goods and banking were the main winners, while information technology, healthcare, and oil and gas finished with minor losses.
Here’s what analysts had to say about the current market performance:
Manish Hathiramani, Technical Analyst and Property Index Trader, Deen Dayal Investments
“The Nifty took a little respite after the open but made its way to almost the high of the day. It is really a matter of time before we see the 13000 level on the index. While strong support is found at 12,550-12,600, the overall trend is bullish and the momentum is fierce. A downtrend approach would be the best way to go long. “
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“Nifty’s short-term trend continues to be positive. The market is now in the close or break area of 12850-12900 levels in the short term. The inability to generate more force in the bullish momentum could result in weakness lower than highs in the next 1-2 sessions. A decisive move above this hurdle could open the next bullish target of 13500 for the next two weeks. “
Ashis Biswas, Head of Technical Research, CapitalVia Global Research, Investment Advisor
“12770 will be a key support level for the market for the next trading sessions. Any break below this level we can expect a short-term correction to 12480. To the upside as there is significant divergence in most oscillators Like RSI, MACD we expect the market participant to use any rally to post profit rather than build a new position. 12930-12950 is likely to act as a supply zone.
Ajit Mishra, Vice President of Research, Religare Broking Ltd
“Upbeat global markets were combined with news of a successful vaccine trial that helped the benchmark index climb bit by bit with each passing day. However, given the recent strong bullish movement, markets may see some consolidation, however, the bias would remain on the upside. With the earnings season largely over, we expect global signals to dictate the market trend to come. Amidst it all, markets across the board are drawing remarkable traction, so traders should plan their positions accordingly. “
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