Markets – Image: Reuters
The National Stock Exchange of India (NSE) and the BSE will remain closed on October 15 on account of Dussehra.
Wholesale commodity markets, including metal and bullion, will also remain shut. There will be no trading activity in the forex and commodity futures markets either.
On October 14, the Sensex ended 568.90 points, or 0.94 percent, to close at 61,305.95 and the Nifty was up 176.70 points, or 0.97 percent, at 18,338.50.
The Sensex and Nifty50 indices touched fresh record highs of 61,353.25 and 18,350.75 on October 14 and for the week, both indices added 2 percent each.
“Market continued its bull run as worries about the likely interest rate hike in the US at a later stage and rising bond yields tempered, while a good start to earnings season boosted sentiment. In the case of benchmark Nifty, it has already rallied nearly 900 points this month and hence there is a strong possibility of temporary weakness,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
“We are of the view that 18,200 could be the trend decider level for positional traders and above the same the uptrend formation will continue up to 18,500-18,750 levels.”
“On the flip side, dismissal of 18,200 could trigger another correction wave up to 18,100-18,050 levels. Contra traders can take a long bet near 18,050 with strict 18,000 as support stop loss. Meanwhile, the Bank Nifty has formed a promising breakout formation as the index has found support at 38,500 and 38,000, and the structure suggests further upside if it succeeds to trade above 38000,” said Chouhan.
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Except Nifty Auto, all other sectoral indices ended in the green. Nifty Bank, IT, infra, metal and PSU bank added a percent each.
Adani Ports, Wipro, Grasim, ITC and HDFC Bank were among major gainers on the Nifty. Losers included Coal India, Eicher Motors, Tata Motors, HCL Tech and TCS.
“In the case of Nifty, the week gone by was dominated by the bulls right from the beginning till the end. The weekly chart shows that the index has broken out from an Inside bar pattern; which was formed in the penultimate week. On the way up, Nifty crossed the crucial psychological mark of 18000 & is now set to test 19000 on the upside from short term perspective,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
“The daily chart is showing runaway gap, which underscores the underlying strength. The same is visible from the momentum indicators as well. Hence the index is expected to stay on the upward trajectory with the short term target at 19,000. On the other hand, the recent gap area of 18,248 – 18,197 will provide cushion in the case of any minor degree dip,” Ratnaparkhi added.
BSE Midcap and Smallcap indices rose 0.5 percent each.
On October 14, the Indian rupee ended near the day’s high at 75.25 per dollar, after opening higher at 75.28 per dollar against Wednesday’s close of 75.37.
“USDINR spot closed 11 paise lower at 75.25 on the back of rise in stocks and weakness in the US Dollar Index, after real yields fell in US. Over the next week, USDINR may continue to see more range bound price action between 75 and 75.80 levels in October futures,” said Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
“For USDINR to break down below 75.00 or challenge 76.00, it needs either the US Dollar Index to head lower or equity markets to head lower. Therefore, one can focus on trading this range using futures or even look at selling options to pocket premium,” he added.
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Share market holiday: BSE, NSE shut today on account of Dussehra
Source: Trend Updates Article
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