Equity benchmarks the Sensex and the Nifty ended in the green on November 4, supported by gains in shares of select heavyweights such as Reliance Industries, Bajaj Finserv, SBI and Bajaj Finance.
Sensex ended 114 points, or 0.19%, higher at 60,950.36 and the Nifty50 closed the day at 18,117.15, up 64 points, or 0.36%.
There were mixed signals for the market. Among the global peers, major European markets were up amid reports that China may relax its Covid-restrictions.
On the other hand, crude oil prices jumped more than 2% as the demand scenario improved. Brent Crude traded above the $95 per barrel mark.
The rupee, however, jumped 45 paise to close at 82.44 per dollar as the greenback eased.
“Recovery in European markets and gains in other Asian peers helped Indian markets rebound from its intraday volatile session and end higher. While the Indian economy is not completely insulated from the global challenges, the recent strong economic readings like robust GST collections and an uptick in IIP numbers are indicating that things could turn for the better in the near to medium term," Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities, observed.
The BSE Midcap index ended flat but the Smallcap index rose 0.41%. Among the sectoral indices, BSE Metal jumped 2.90%, followed by the Commodities index which rose 2%.
"Markets have been maintaining a positive tone amid the consolidation bias, clearly showing buying interest among the participants. We reiterate our view to stick to the sectors and stocks participating in the move instead of laggards. For cues, the performance of global indices and earnings will remain in focus," said Ajit Mishra, VP of Research at Religare Broking.
Sensex and Nifty rose nearly 2% for the week while the BSE Midcap and Smallcap indices rose 2.4% and 1.5% respectively.
Technical view by experts
Athawale pointed out that a bullish candle on weekly charts and an uptrend continuation formation on daily charts is indicating the continuation of an uptrend in the near future.
"Technically, as long as Nifty is trading above the 10-day SMA (simple moving average) or 17,900 level, the uptrend wave is likely to continue. Above this, the index could move up to 18,300-18,500. If the index closes below the 10-day SMA, it could slip to 17,800-17,700,” said Athawale.
Rupak De, Senior Technical Analyst at LKP Securities said the positive momentum continues as the Nifty closed above the previous swing high. Besides, the index has maintained its position above 200DMA.
"The momentum indicator RSI is in a bullish crossover. The trend for the short term remains bullish, with an upside potential of 18,300/18,600. On the lower end, support is pegged at 17,950," said De.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.
