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The market had developed cold feet in early trade, on reports of an aggravating spat between the government and central bank. Media reports indicated RBI Governor Urjit Patel might resign if Section 7 of RBI Act is invoked to transfer reserves.
However, the government, sensing the nervousness in the market, clarified that it respects RBI’s autonomy and recognises its essentiality in governance.
The market heaved a sigh of relief and started building on the gains thereafter. Senbad settled with a strong gain of 551 points, or 1.63 per cent, at 34,442, while Nifty rose 188 points, or 1.85 per cent, to finish at 10,386.
The BSE Midcap and Smallcap indices extended gains into the third consecutive session, ending higher by 1.56 per cent and 1.38 per cent, respectively.
However, despite Wednesday’s gains, October proved to be the worst month for benchmark Senbad since February 2016, having lost 1,785 points or 4.93 per cent.
Let’s take a look at today’s highlights:
Who moved my Senbad
With a 5.78 per cent gain, HDFC emerged as the top gainer in the Senbad pack, followed by IndusInd Bank (up 4.47 per cent), which snapped losses of four consecutive sessions. Infosys (up 4.02 per cent), Axis Bank (up 3.43 per cent), YES Bank (up 3.30 per cent) and Sun Pharma (up 3.12 per cent) were among the top index gainers. Overall, nine stocks including Coal India, Tata Steel, Maruti Suzuki, Adani Ports, Kotak Mahindra Bank, Power Grid Corporation, Bharti Airtel, Hero MotoCorp and HDFC Bank settled in the red in the Senbad pack.
Rs 1.93 lakh crore added to investor wealth
Wednesday’s market rally boosted investors’ wealth by nearly Rs 1.93 lakh crore on BSE. The cumulative wealth of investors shot up to Rs 1,38,45,109 crore from Rs 1,36,52,148 crore on the previous day.
Earnings updates
Lupin reported a 41.25 per cent year-on-year (YoY) drop in September quarter profit at Rs 268.45 crore, which was largely in line with a Rs 273 crore estimate projected by badysts in an ET Now poll. Shares of the company settled 1.42 per cent higher at Rs 888 on BSE.
FMCG major Dabur India reported a 4.10 per cent rise in consolidated profit at Rs 377.55 crore for the second quarter, helped by growth of the core business in the domestic market. But the numbers failed to impress the market and the stock fell 2.41 per cent to Rs 385.40 on BSE.
Adani Enterprises reported a 192 per cent year-on-year (YoY) rise in consolidated profit at Rs 172 crore for September quarter. The stock inched up 0.68 per cent to Rs 170.15.
Coal India fell as FPO opened
Shares of Coal India extended losses to the second session, falling 3.53 per cent to Rs 266.15 on BSE as an FPO to divest 9 per cent stake opened. The divestment plan is expected to fetch the Centre about Rs 14,000 crore at floor price, including a greenshoe option.
BSE metals index only sectoral loser
The metals pack emerged the lone loser among the sectoral indices on BSE. The index settled 1.40 per cent down at 12,524, dragged by Coal India, Tata Steel, Hindalco, SAIL, Nalco, Hindustan Zinc and NMDC.
141 stocks showed potential upside
As many as 141 stocks, including Axis Bank, Vedanta, Tech Mahindra, Ujjivan Financial, Aurobindo Pharma, Biocon, HCL Technologies and Greaves Cotton, showed bullish crossovers on BSE, as per the momentum indicator moving average convergence divergence or MACD. On the flip side, Coal India, Hindustan Zinc, Power Grid Corporation, Sacheta Metals, Asahi India Glbad and Star Cement featured among the 28 stocks that showed bearish crossovers.
Overbought & oversold stocks
Momentum oscillator Relative Strength Index or RSI showed 63 stocks in the oversold zone on BSE. Kwality, Dolphin Medical, Atlas Jewellery, Bharat Road Network, Supreme Petro, Hinduja Ventures and Esaar were among the stocks that entered the oversold zone.
Meanwhile, Mideast Portfolio Management, Pushpanjali Floriculture, Chambal Breweries & Distilleries, Orient Tradelink and Spicy Entertainment were among 24 stocks that entered the overbought zone.
Spurt in open interest
With a 101 per cent change, Coal India witnessed the biggest spurt in open interest on BSE, followed by Cummins India (87.58 per cent), Syndicate Bank (34.38 per cent), Torrent Power (29.37 per cent) and Tata Global Beverages (22.18 per cent).
200 stocks hit lower circuit
Manpasand Beverages, Vakrangee, Kwality, 8K Miles Software Services and Magadh Sugar & Energy were among 200 stocks that hit lower circuits on BSE, while 164 stocks including Edelweiss Financial Services, Hindoostan Mills, Sun Retail, Bombay Dyeing and Birla Cable hit upper circuits.
Britannia, Cummins top 200-DMA
Britannia, Cummins, Torrent Power, Aarti Drugs, Seamec and Astral Poly Technik traded above their 200 DMA. On the other hand, Just Dial, Bharat Gears, Hind Rectifiers and Berger Paints witnessed negative breakouts and traded below their 200 DMA.
Call/put writing
Nifty managed to breach its immediate hurdle at 10,280 and settled with decent gains. Maximum Put open interest was at 10,000 followed by 10,200 while maximum Call OI was at 10,700 followed by 11,000. Put writing was seen at strike price 10,200 followed by 10,300 while minor Call unwinding was seen at all immediate strike prices.
Technical view
The Nifty formed a large bullish bar at the end of the day. The hourly chart shows that the index today formed an inverted H&S pattern & broke out on the upside. The benchmark index also achieved the conservative pattern target on the upside. The larger picture shows that the volatility can continue going ahead & it can result into a wedge pattern formation. The recent bounce back seems to be a part of the unfolding pattern. Hence, the bounce is unlikely to develop into a larger structure on the upside. On the higher side, 10,440 shall be the key hurdle where the bears can look to come back. Overall, the Nifty is expected to test the crucial support zone of 10,000-9,952 in the short term, said Gaurav Ratnaparkhi, senior technical badyst, Sharekhan by BNP Paribas.
Corporate action
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