Markets climb to new records amid mixed Asian indices; IT stocks rebound from recent weakness

Stock markets have seen a stellar rally as Sensex and Nifty hit new highs, largely dominated by auto and IT stocks. The benchmark Nifty has maintained a strong continuation breakout formation which clearly suggests a new uptrend from current levels.

The Sensex was up 452.74 points or 0.75% to 60,737.05, and the Nifty was up 169.80 points or 0.94% to 18,161.80. About 1,602 stocks rose, 1504 stocks fell, and 118 stocks were unchanged.

Tata Motors, M&M, Tata Consumer Products, Power Grid Corp and ITC were among the main winners of the Nifty. Among the big losers were Maruti Suzuki, ONGC, Coal India, SBI Life Insurance and HUL.

Gaurav Udani, CEO and Founder of ThincRedBlu Securities, said: “Nifty hit a new lifetime high of 18,197 today. It closed at 18,160, up 170 points since the October 13 close. Nifty’s volumes were above its average, which is a good sign. for long positions. Nifty has strong support in the 18,050-18,110 range. Traders can use a buy-to-bottom strategy with a strict stoploss at 18,250-18,300 as targets.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: “We believe that the short-term chart formation is still on the long side, but due to an intraday rally. overloaded, bulls can take a cautious stance between the 18,250-18,275 levels. For day traders, 18100 would act as a key support level. Above the same level the uptrend wave will continue to the 18,200-18,275 levels. On the other hand, the rejection of 18,100 could possibly trigger a wave correction up to 18,040-17,980 levels. . “

Palak Kothari, Research Associate, Choice Broking, said: “At the back of SGX Nifty, the index opened on a positive note and rallied higher and hit a new lifetime high at the 18 level. 197.80 and closed the session at the 18,161.75 level with a gain of 169.80 levels. While Bank nifty closed the session at 38,635.75 levels with a gain of 114.25 points. Among the NIFTY 50 index, 34 stocks posted gains. On the sector policy, the automotive index is up more than 4% and metals, energy, power indices up 1 to 2%.

“Technically, the index gave a breakout of the uptrend line as well as a close above the same indicating that the buyers are active. A stochastic daily momentum indicator and MACD have both showed a positive crossover on the daily chart which adds more optimism to the price. The ADX indicator reads at 38 with + DI above – DI, which emphasizes the strength of the meter. Additionally, the price has also exceeded the upper formation of the ‘Bollinger Band’, suggesting the uptrend the movement will continue in the near term. Currently, the index is trading in uncharted territory with immediate support at the 18,000 level. , while holding above the same level may display levels from 18,300 to 18,400. “

Sahaj Agrawal, Head of Research and Derivatives at Kotak Securities, said: “Nifty remains in a medium-term uptrend for 18,600-18,800. For the October series, momentum remains strong above 17,600. is expected to gain momentum. “

Mohit Nigam, Head – PMS, Hem Securities, said: “Indian benchmarks rose for the fifth consecutive session and closed at record highs today. was mainly due to the investment of Rs 7,500 crore by the TPG group in the EV subsidiary of Tata Motor. Almost all of the companies in the Tata group were on a roll today. Investors expect profits today from big names in IT like Wipro and Infosys. These results will guide whether the bull run in the IT sector continues or whether we may see profit bookings in this space.

“Technically, Nifty 50 is capable of sustaining 18,000 levels and we may see markets touching 18,300 levels in the next session. The 17,800 level is immediate support in Nifty 50.”

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Posted on: Wednesday October 13, 2021 3:55 PM IST


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