Easing yields, oil prices lift Sensex 320 pts; Pharma stocks steal the show

Closing Bell on September 29, 2023: The Nifty50, on the other hand, gained 115 points to shut shop at 19.638. Sectorally, the Nifty Pharma index jumped the most, up 2.7 per cent

Stock market highlights: Easing bond yields in India, coupled with decline in oil prices globally, lifted equities in India on Friday. The benchmark S&P BSE Sensex surged 320 points, or 0.49 per cent, to end at 65,828. The Nifty50, on the other hand, gained 115 points to shut shop at 19.638.

The indices, however, ended sharply off intraday highs of 66,152 and 19,726, respectively.

Among the stocks that lent support to the frontline indices, Hindalco jumped 5.7 per cent, NTPC nearly 4 per cent, and Dr Reddy's Labs, Divis Labs, Tata Motors, Hero MotoCorp, Apollo Hospitals, ONGC, Sun Pharma, Cipla, Tata Steel, JSW Steel, SBI, Bajaj Auto, IndusInd Bank, ICICI Bank, and ITC added between 1 per cent and 3 per cent.

The draggers, however, included Adani Enterprises (down 2.4 per cent), LTIMindtree, HCL Tech, Power Grid, Tech M, Infosys, Asian Paints, and TCS.

In the broader markets, the BSE MidCap index outperformed its peers as it gained over 1 per cent. The BSE SmallCap, meanwhile, advanced in-line with benchmarks, up 0.6 per cent.

Sectorally, the Nifty Pharma index jumped the most, up 2.7 per cent, followed by the Nifty Metal (2 per cent), and the Nifty PSU Bank (1.6 per cent) indices.

3:59 PM

Tech View :: 'Positive momentum in Nifty may continue'

Nifty50

On the daily charts, we can observe that the Nifty has not witnessed follow-through selling pressure from the previous trading session. In fact it managed to close above 19,600 zone which is a positive sign. On the hourly charts, we can observe an Impulse i.e. a five-wave advance which helps us to assume that the low of 19,492 is a short-term bottom in place.

The positive divergence and crossover on the hourly time frame also suggests that the probability of a pullback is high. Thus, both price and momentum indicator suggest that there can be a positive momentum over the next few trading sessions.

In terms of levels, 19,500 – 19,480 is the crucial support zone,while 19,780 – 19,840 shall act as an immediate hurdle zone.

Bank Nifty

Bank Nifty also witnessed a pullback and as a result it managed to close around the 20 week moving average (44,584) which is a positive sign. We believe that the Bank Nifty is witnessing loss of momentum on the downside which is evident from the positive divergence on the hourly time frame. On the upside we expect a pullback towards 45,000 – 45,200 zone from short term perspective.

Views by:Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

3:55 PM

Comment :: 'Mixed trend on sectoral front is offering opportunities'

Though the pace of decline has softened, the tone is still negative and we don’t see that change until Nifty decisively reclaims 19750. Meanwhile, a mixed trend on the sectoral front is offering opportunities on both sides so traders should continue with stock-specific trading approach.

Views by: Ajit Mishra, SVP - Technical Research, Religare Broking

3:53 PM

Comment :: 'Bers maintaining hold at higher levels'

The Indian market witnessed a rebound as positive GDP data from Britain instilled confidence among its global peers. However, the market is facing stiff resistance at higher levels due to insipid liquidity and a lack of triggers to overcome the bears. The upside risk to domestic inflation may recede with the return of a good monsoon in September. This, in turn, could provide the RBI with leeway to maintain a pause in the upcoming policy meeting next week

Views by: Vinod Nair, Head of Research at Geojit Financial Services

3:52 PM