In the last 12 sessions, the bluechip indices have closed in the red for just one session, which describes the one-way rally the market has seen. The HDFC twins were the largest positive contributors during the early hours of the day. PSU shares also saw some buying and were among the top earners.
“Nifty has good support at 11,650 and until we break that, we are in positive territory. Resistance to the upside is at 12,050. If we cannot move beyond any of the levels convincingly, we would be in range and trading. in this area should be avoided. Stocks that look interesting for a bull move include Axis Bank, HDFC Bank and Tata Steel, “said Manish Hathiramani, index trader and technical analyst at Deen Dayal Investments.
Factors driving markets
- Hopes for American aid reignite: House Speaker Nancy Pelosi said on Sunday that differences remained with the administration of President Donald Trump over a comprehensive coronavirus aid package, but she was optimistic the legislation could be passed before the presidential election. November 3.
- Second quarter earnings: Investors reacted to HDFC Bank’s earnings when the lender beat estimates. It was the first major bank to announce earnings after the moratorium ended and set the tone for other banking actions.
- Vaccine at the end of the yearTo boost general sentiment, drugmaker Pfizer Inc said Friday that it could have a coronavirus vaccine ready in the United States by the end of this year. Meanwhile, global coronavirus cases rose by more than 4 lakh for the first time on Friday night, a record one-day rise as much of Europe enacts new restrictions to curb the outbreak.
- China’s macroeconomic data beats forecast: Monthly forecast indicators beat forecasts: Industrial production accelerated 6.9 percent in September from a year earlier, when analysts expected a 5.8 percent gain from a 5.6 percent increase in August. Retail sales rose 3.3 percent last month from a year earlier versus expectations for 1.8 percent growth. However, China’s gross domestic product (GDP) grew 4.9 percent in July-September from a year earlier, slower than the average forecast of 5.2 percent.
How are the bluechips?
The benchmark indices traded strongly. At 10.14 a.m. M., BSE’s flagship Sensex, was up 505 points to 40,488.15. The benchmark NSE Nifty index followed, climbing 118 points or 0.98 percent to 11,880.40.
In the package of 50 Nifty shares, ONGC earned the most, 4.31 percent. GAIL, NTPC, Coal India, HDFC, ICICI Bank, Power Grid and Indian Oil were among other major winners.
UPL was the group’s biggest loser for the second day, down 1.27 percent. TCS, Hero Moto, Eicher Motors, Cipla and Divi’s Labs were among other big names that opened with cuts.
Wider markets
The broader market indices underperformed their major peers as Nifty Smallcap was up 0.49% while Nifty Midcap was up 0.43%. The broadest NSE index, the Nifty 500, was up 0.55 percent.
Federal Bank, Godrej Properties, Yes Bank, Amber Enterprises, Rashtriya Chemicals and CSB Bank were among the top winners in the space, while Suven Pharma, Persistent Systems, IDBI Bank, JSW Energy, Jubilant Food and Edelweiss Financial were under selling pressure. .
Global markets
MSCI’s broader Asia-Pacific stock index outside of Japan rose 0.6 percent for its second consecutive day of earnings, declining slightly after third-quarter gross domestic product data from China.
Japan’s Nikkei and Australia’s benchmark index were up 1.1 percent each. E-Mini futures for the S&P 500 were up 0.6 percent in Asian trading.
What to expect
- Second Quarter Earnings: Britannia, ACC, HDFC Life Insurance and Rallis India are among those who will make their profits during the day.
- US Fed Official Speech: Federal Reserve Vice Chairman Richard Clarida will speak on “America’s Economic Outlook and Monetary Policy” ahead of the American Bankers Association Convention.
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