Domestic equity indices closed the session over 1% up on Monday. The 30-share BSE Sensex surged 721.13 points or 1.20%, settling at 60,566.42 while the NSE Nifty 50 rose 207.80 points or 1.17% to 18,014.60. In the sectoral indices, Nifty Bank climbed 2.31% and Nifty IT advanced 0.53%. State Bank of India, IndusInd Bank, Hindalco, Coal India and Bajaj Finserv were the top Nifty gainers. The BSE midcap index rose 2.31% and smallcap index climbed over 3%. Volatility gauge, India VIX, meanwhile, fell 1.40% intraday. PSU Bank stocks rose to close 7.29% higher, while Nifty Pharma fell 0.84%.
Market to remain sideways to positive; Banks, Auto, capital goods and defence sectors in focus
“After a sharp fall of 3% in Nifty over the last three trading sessions, value-based buying emerged at lower levels. In the absence of any major global events due to year-end holidays, we expect the market to remain sideways to positive based on news flows. We expect a focus on Banks, Auto, capital goods and defence sectors to do well in the near term.” – Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Opt for quality stocks, Index ETF for long-term portfolios
“Technically Nifty has formed a bullish candle in the daily chart, as it closed above 18000, a critical psychological level. The overall structure shows that the index will likely witness both side movements in the coming days. The Nifty may find support around 17850 followed by 17800 levels while on the upside 18220 may act as an immediate hurdle. On the other hand, Bank nifty has support at 41600 levels while resistance is placed at 43500. India VIX has managed to remain under 16 levels. Indicators as RSI remained in the neutral zone while Bollinger band indicated 18460 would remain strong resistance till monthly expiry. Overall, Investors may opt for quality stocks and Index ETF for long-term portfolios.” – Om Mehra, Equity Research Analyst, Choice Broking.