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Monday, November 1, 2021

Taking Stock: Market snaps 3-day losing streak; Sensex gains 831 points, Nifty ends above 17,900 - Moneycontrol.com

The benchmark indices rose 1.5 percent to snap a three-day losing streak on November 1 on the back of buying in the IT, metal and realty names.

The market started the day on a positive note and weathered some volatility to end near the day's high level supported by better GST collection, manufacturing data and mixed auto numbers.

At close, the Sensex was up 831.53 points, or 1.40 percent, at 60,138.46, and the Nifty was up 258 points, or 1.46 percent, at 17,929.70.

"The month began on a volatile note till the bulls wrested the initiative on the back of buoyant PMI data and GST collections for last month," S Ranganathan, Head of Research at LKP Securities said.

Despite the trends in e-way bills pointing to higher GST collection in October ahead of festival demand, supply constraints in the automotive sector kept the street cautious, he said.

BSE midcap and smallcap indices rose over a percent each.

IndusInd Bank, Hindalco Industries, HCL Technologies, Bharti Airtel and Grasim Industries were among the major Nifty gainers. Losers included UPL, Bajaj Finserv, M&M and Nestle India.

All the sectoral indices ended in the green, with Nifty metal and IT indices up 2-3 percent, while other indices were up a percent each.

Stocks and sectors

On the BSE, realty, metal and IT indices rose 2-3 percent, while bank, FMCG, healthcare, oil & gas and power indices rose 1 percent each.

Among individual stocks, a volume spike of more than 200 percent was seen in Oberoi Realty, Whirlpool India and SAIL.

Long buildup was seen in GSPL, BirlaSoft and SBI Cards, while short buildup was seen in Whirlpool India, Laurus Labs and Atul.

More than 150 stocks, including Arvind, Sun TV Network and Escorts, hit a 52-week high on the BSE.

Technical View

The Nifty formed a bullish candle on the daily scale and negated its lower highs-lower lows of the last two sessions.

Now it has to cross and hold above 18,000 for an up move towards 18,150 and 18,350. On the downside, support shifted higher to 17,777 and 17,600, said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.

Outlook for November 2

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty rose smartly to get past the 17,900 level. If the index holds above 17,900 for a couple of sessions, the uptrend will resume and take the Nifty higher.

On the downside, 17,550-17,600 has become a good support and until that does not break on a closing basis, it is safe to assume that the trend continues to remain on the upside.

Rahul Sharma, Co-Founder, Equity99

After upmove on November 1, 18,000 will act as immediate and strong resistance for the Nifty. A break of it, can see the Nifty touching 18150 and later 18,225. On the lower side, 17,890 will act as strong support, a breach of which may bring the Nifty down to 17,700 and 17,500.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Technically, the index has completed one leg of a pullback rally and now 18000 and 18,050 will act as a crucial resistance level. The index has formed a strong bullish candle but the key concern is that it is still trading below 20-day SMA.

The intraday texture of the market is bullish but traders may prefer to take a cautious stance between 17,975 and18,020.

As long as the index trades above 17,800, the uptrend texture will remain intact. For bulls, the 17,850-17,800 level could be the strong support zone and below the same, the uptrend would be vulnerable.

Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas

The hourly momentum indicators that were pushed into the oversold zone assisted the pullback. Consequently, the Nifty is now heading towards 18,000, which is a key level to watch out for.

If the bulls cross it on a closing basis, the short-term range will again shift higher.

Beyond 18,000, a falling trendline near 18,180 will be the subsequent level to watch out for. On the downside, 17,850-17,800 will act as an immediate support zone.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Taking Stock: Market snaps 3-day losing streak; Sensex gains 831 points, Nifty ends above 17,900 - Moneycontrol.com
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