Indian shares ended moderately higher in a choppy trading session as banking and financial stocks reversed early losses. The NSE Nifty 50 index and the benchmark S&P BSE Sensex ended about 0.2% higher at 12,719.95 and 43,443, respectively. The indexes posted weekly gains of over 3% each. Markets will have a special one-hour Muhurat trading session on Diwali (Saturday) to mark the beginning of Samvat 2077.
Both the benchmarks closed calendar year Samvat 2076 with smart gains. The Sensex rallied 4,384.94 points or 11.22 per cent, while the Nifty soared 1,136.05 points or 9.80 per cent.
The Nifty banking index closed 0.66% higher during the session, advancing 19% so far this month. Gains among banking stocks have helped the main Nifty index post strong gains this month.
India’s top lender State Bank of India today firmed 1.5%, while its private-sector peers Axis Bank and ICICI Bank advanced about 1.8% each. The Nifty realty rose about 1.3% after the government announced a new set of stimulus measures, including additional funding for real estate developers and contractors.
Oil-to-telecoms conglomerate and India’s most valuable company Reliance Industries gained about 1% after recovering from a 5% drop in the last two sessions. Automaker Eicher Motors firmed 7.4% and was the top gainer among Nifty stocks after the company reported a better-than-expected profit in the July-September quarter on Thursday.
Here is what analysts said on today’s market performance:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“The market is consolidating and slowly inching higher towards 12900/13000 levels. The Nifty 50 index is forming a symmetrical triangle on the intra-day chart. It’s a bullish continuation formation that would lift the market towards the psychological mark of 13000. The breadth of the broader market is quite satisfactory, which is indicating a firm grip of bulls and would not allow the Nifty to fall below 12600 levels in the normal circumstances.”
Ajit Mishra, VP – Research, Religare Broking Ltd
“We have a special Diwali muhurat trading session tomorrow evening i.e. on November 14 and expect the bullish tone to continue. Considering the hurdle at 12,800 in Nifty, we suggest focusing on broader markets and advise preferring only quality midcap and smallcap counters for short term trades. At the same time, any dip in the index majors, which are trading in line with the benchmark, should be considered as a buying opportunity.”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
“The Nifty traded in a narrow range of about 150 points. It failed to get past 12770-12780 which is the pivotal point for the uptrend to resume. The index has strong support within 12100-12300. If we cross 12780, we should scale up to 13000 levels.”
Sumeet Bagadia, Executive Director, Choice Broking.
“Nifty witnessed a gap down opening on back of Asian Markets however; the weak momentum couldn’t last for long and with the passing of early session of trade, the benchmark index made an intraday high with help from Reliance and Bajaj Finance. Subsequently, momentum was range bound only without any clue from any direction and finally Nifty settled its weekly closing at 12719 level with the gain of 29 points only. Technically, the benchmark index has been trading in a Range Bound movement since the last three days after forming an all-time high which indicates sideward movement between the range of 12550 to 12770, either side breakout will lead the particular direction and confirm the trend for time being.”