Mumbai, Nov. 7: The stock market rebounded from its early decline to close Tuesday’s trading session higher.
29 of the Nifty firms reported growth, while 21 saw a decrease. Hero MotoCorp, Bajaj Finance, Divi’s Lab, JSW Steel, and M&M were among the top losers, while Sun Pharma, BPCL, NTPC, Dr. Reddy, and IndusInd Bank were the top gainers.
“Equity benchmark Nifty closed above the 19400 level,” said Profit Idea’s founder and managing director, Varun Aggarwal. The US labor market’s cooling down helped increase market confidence that the US Federal Reserve can refrain from enacting further monetary tightening. On the assumption that the Federal Reserve has completed tightening monetary policy, the US 10-Year Bond Yield and Dollar Index dropped to a two-month low.
On the home front, strong quarterly earnings, a decline in the price of oil, and a slowdown in FII sales have all contributed to the positive feeling in the market, according to Aggarwal. The largest rally was seen in cement today. The small- and mid-cap index, metals, and private banks all saw significant gains.
This rising tendency in the stock market was caused by a number of factors. Market confidence increased as the US labor market began to calm down, indicating that the US Federal Reserve would not need to impose any monetary tightening.
“Looking ahead, it will be interesting to see how Nifty moves forward,” said Aggarwal. The 1946–19767 range of the Nifty has strong resistance. Support is located at 19210 on the bottom. 18837 provides significant help. Strong call writing is seen in OI data at 19500, and put writing is present at 19000 levels. The Nifty has a broader range now, so trading needs to reflect that. It is best to play the rally with stringent stop losses. Any decline will provide long-term investors with a wealth of opportunities.
In anticipation of a potential change in Federal Reserve policy, both the US 10-year bond yields and the dollar index dropped to 2-month lows.
Strong quarterly results, a decline in oil prices, and a slowdown in sales by foreign institutional investors (FIIs) improved market sentiment domestically.
Cement was the biggest beneficiary of the rise, while metal, small- and mid-cap indexes, and private banks all saw notable increases.
For investors with a medium- to long-term investment horizon, mid- and small-cap stocks may be beneficial. The maximum call OI is at 19500, then 19400, on a weekly basis, while the maximum put OI is at 19000–19300. Option data points to an immediate trading range of 19000–19400 zones but a wider trading range between 18800 and 19600 zones. For medium- to long-term investors, every decline presents a fantastic opportunity. For the Nifty, the medium target is still 20466-21234. Our prejudice against the Indian economy does not go away. Anticipate India to do better than world markets. Regarding the industry front, we are still optimistic about IT, Pharma, Banking, FMCG, Petrochemicals, and Metals, according to Aggarwal.
Going forward, the performance of the market continues to be fascinating. With support around 19,210 and major support at 18,837, the Nifty is up against formidable resistance in the 19,463–19,767 levels.
Option data shows that there is an immediate range of 19,000 to 19,400 zones and a wider trading range between 18,800 and 19,600 zones.
Both long-term investors and short-term traders may benefit from the current market conditions. India is predicted to do better than international markets, and its economy continues to show potential.
A positive mood is seen in the IT, pharmaceutical, banking, FMCG, petrochemical, and metals industries.
The market saw some resistance at higher levels as caution prevailed due to the start of the important state elections and further negative global cues on account of a more than expected fall in Chinese exports, highlighting a continued slowdown in global trade, according to Vinod Nair, Head of Research at Geojit Financial Services.
“Crude oil prices moderated, a positive for India in the midst of geopolitical tension,” Nair said, “despite the extension of supply cuts by Saudi Arabia and Russia.” This will help long-term returns, as will the stabilization of US bond rates and the current strong earnings season.
With a medium aim for the Nifty between 20,466 and 21,234, investors are urged to take advantage of any dips as excellent chances for medium- and long-term investments.