India’s benchmark indices extended gains for the fifth straight session on October 13, led by the Tata group stocks and support from IT, metal and infrastructure names.
At close, the Sensex was up 452.74 points, or 0.75 percent, at 60,737.05, and the Nifty was up 169.80 points, or 0.94 percent, at 18,161.80.
“Auto stocks led by Tata Motors propelled the Nifty to new highs of 18,200 with good support from infra & metal stocks on the launch of the master plan for infrastructure development and multi- modal connectivity,” said S Ranganathan, Head of Research at LKP Securities.
Private equity firm TPG Group will invest Rs 7,500 crore in its new wholly-owned electric vehicle (EV) subsidiary, Tata Motors said on October 12.
As the street awaited earnings from big IT names, Tata Group stocks hogged the limelight despite profit-taking in late afternoon trade, he added.
Tata Motors, M&M, Tata Consumer Products, Power Grid Corp and ITC were among the major gainers on the Nifty. Maruti Suzuki, ONGC, Coal India, SBI Life Insurance and HUL were among the big losers.
All the sectoral indices ended in the green, with the Nifty Auto index adding more than 3 percent. Energy, infra, IT and metal indices were up a percent each.
The broader indices BSE midcap and smallcap added 0.6-1.5 percent.
Stocks and sectors
On the BSE, the auto index rose more than 3 percent, while IT, metal, power and capital goods indices were up 1-2 percent.
Among individual stocks, a volume spike of more than 500 percent was seen in BHEL, SAIL and Tata Consumer.
Long buildup was seen in BHEL, M&M and Indiamart Intermesh, while short buildup was seen in Canara Bank, Colgate Palmolive and Torrent Power.
More than 380 stocks, including Tata Motors, ITC and Equitas Holdings, hit a 52-week high on the BSE.
The Nifty formed a bullish candle on the daily frame and closed with gains of around 170 points.
“Now, it has to hold above 18,050 zones to extend its move towards 18,250 and 18,500 levels, whereas on the downside, support is seen at 17,947 and 17,850 zones,” said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Market Outlook for October 14
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
We are of the view that the short-term chart formation is still on the long side but due to an overstretched intraday rally, the bulls may take a cautious stance between 18,250 and 18,275 levels.
For day traders, 18,100 would act as a key support level. Above the same, the uptrend wave will continue up to 18,200-18,275.
On the other hand, the dismissal of 18,100 can trigger a correction wave up to 18,040-17,980 levels.
Palak Kothari, Research Associate, Choice Broking
The ADX indicator is reading at 38, with +DI trading above –DI, which points to strength in the counter. The price has also moved above the upper “Bollinger Band” formation, which suggests that the bullish movement will continue in the near term.
The index has been trading in unchartered territory with immediate support at 18,000, above which the Nifty can move to 18,300-18,400.
Mohit Nigam, Head-PMS, Hem Securities
On the technical front, the Nifty 50 has been able to sustain above 18,000 and we may see it touching 18,300 in the coming session. Immediate support for the Nifty is at 17,800.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.