In a vibrant display of market optimism, Indian equity benchmarks experienced a notable upswing during a special one-hour “muhurat” trading session on Friday, aligning perfectly with the festive spirit of Diwali. The surge was largely powered by robust performances from automobile stocks, which basked in the glow of encouraging monthly sales figures.
The NSE Nifty 50 ascended by 0.41%, landing at 24,304, while the BSE Sensex leapt 0.42% to reach 79,724. This rise marked an end to a two-day streak of losses and injected renewed vigor into the market.
Market Pulse Insights:
Analysts cast an eye on the market’s heartbeat, dissecting recent movements. Lovelesh Sharma from SAS Online articulated that, “The Nifty has sculpted an ‘inside day’ pattern on its daily chart, hovering beneath the pivotal 20 and 50 Simple Moving Averages (SMAs). The chart’s recent behavior reveals a muted recovery across various stocks, with an intriguing uptick in those surpassing the short-term 10 and 20 moving averages. Yet, beneath this surface, the broader picture remains bearish, as evidenced by the 20-day advance-decline metric languishing in oversold territory.”
Sharma continued, “On shorter timescales, price action suggests a compression, signifying a trading range between 24,500 and 24,150. Multiple resistances appear overhead, thwarting any significant advances, with 24,500 delineating a critical threshold for bearish sentiment. Notably, the 20 and 50 SMAs align around 24,330 and 24,344, respectively, intensifying the importance of upcoming data against a global backdrop of volatility.”
US Market Performance:
Across the Atlantic, Wall Street’s leading indices regained traction, rebounding from a prior day’s retreat, influenced in no small part by Amazon’s stellar earnings that defied the backdrop of a disappointing U.S. job growth report for October. Amazon’s shares soared following its earnings announcement, buoyed by impressive retail sales figures that eclipsed market forecasts. The S&P 500 rose 0.40% to conclude at 5,728 points, while the Nasdaq Composite ascended 0.80% to 18,239. The Dow Jones Industrial Average also marked a gain of 0.70%, closing at 42,053.
European Market Highlights:
Meanwhile, Europe’s key stock index enjoyed its most significant one-day surge in five weeks on Friday, with banks spearheading a market reversal following recent declines. Investors were keenly absorbing a tapestry of economic indicators, corporate earnings reports, and the impending U.S. elections. The pan-European STOXX 600 index climbed 1.1%, rebounding from a nearly 3% drop over the preceding three days; however, it still recorded a weekly decline.
Technical Overview:
The sentiment around the Nifty appears cautious as long as it remains tethered below the 24,500 mark, with any tentative rise toward this pivotal level likely to encounter selling pressures. Support is bolstered at 24,000, while resistance is firmly placed at 24,500 and 24,750.
Stocks in the Limelight:
Bullish Performers: The Moving Average Convergence Divergence (MACD) indicator pointed towards bullish trends for stocks such as Jubilant Pharmova, IIFL Finance, Bharat Dynamics, Chalet Hotels, Birla Corporation, and JK Lakshmi Cement. The MACD is lauded for its ability to signal potential trend reversals, suggesting the prospects of price increases for these stocks.
Potential Weakness: Conversely, stocks like ICICI Prudential Life, Cigniti Technologies, and Systematix Corporate Services displayed bearish signals, indicating the onset of downward trajectories marked by MACD crossovers.
Activity in the Market:
Most Active by Value: Zomato (₹322 crore), Piramal Pharma (₹307 crore), Mahindra & Mahindra (₹296 crore), Reliance Industries (₹283 crore), Tata Motors (₹244 crore), Punjab National Bank (₹237 crore), and the Bombay Stock Exchange (₹227 crore) rounded out the list of the most value-active stocks on the NSE.
Most Active by Volume: Vodafone Idea stood out with 24.7 crore shares traded, followed closely by Punjab National Bank (2.3 crore shares), YES Bank (1.7 crore shares), IDFC First Bank (1.5 crore shares), and Suzlon Energy (1.5 crore shares).
Market Sentiment Snapshot:
Overall, the breadth of the market tilted favorably towards the bulls, with 3,046 stocks closing in the green and 536 finishing in the red, painting a picture of cautious optimism amidst the complexities of market dynamics.
(Disclaimer: The recommendations, suggestions, views, and opinions expressed herein are solely those of the experts and do not imply the views of the publication.)
