Frontline indices the Sensex and the Nifty ended in the green for the sixth consecutive session on October 21, thanks to gains in shares of banking heavyweights such as Axis Bank, ICICI Bank, Kotak Mahindra Bank and SBI.
In the last six sessions of gains, Nifty has gained 3.30% while the Sensex has moved 3.62% higher.
Sensex opened 178 points higher at 59,381.36 and rose 388 points to an intraday high of 59,590.93 on October 21. It, however, succumbed to profit-booking in the last hours of trade and lost most gains amid weak global cues.
The 30-share index finally ended 104 points, or 0.18%, up at 59,307.15 while the Nifty closed at 17,576.30, up 12 points, or 0.07%. Mid and smallcaps underperformed as the BSE Midcap index fell 0.75% and the Smallcap index ended with a loss of 0.60%.
"Selling emerged in the second half led by a weak start to the European market due to the fear of tight monetary policy. Domestic investors maintained their caution and began to book profits," said Vinod Nair, Head of Research at Geojit Financial Services.
Shares of Axis Bank, ICICI Bank, Kotak Mahindra Bank, Hindustan Unilever and Nestle ended as the top gainers in the Sensex index. On the flip side, those of Bajaj Finance, Bajaj Finserv, IndusInd Bank, Larsen & Toubro and Asian Paints ended as the top laggards.
Banking stocks hogged the limelight as the Nifty Bank, PSU Bank and Private Bank indices jumped almost 2% while most sectoral indices ended in the red. Nifty Financial Services rose by a percent.
Banking stocks rose after Reserve Bank of India (RBI) data showed bank credit rose by 17.94% year-on-year to ₹128.6 trillion as of October 7. Deposits at banks increased 9.62% year-on-year to ₹172.72 trillion as of October 7.
"Good start to Q2FY23 results by banks, IT, and FMCG stocks maintained stability in the market but mid and smallcaps were heavily impacted. The rise in credit growth to a 10-year high of 17.94% year-on-year in October added colour to financial stocks," Nair pointed out.
The Nifty Media index fell nearly 2%, followed by Nifty Metal which fell more than a percent.
Crude oil prices were subdued. Benchmark Brent Crude traded near the $92 a barrel mark. The rupee saw a mild gain of 7 paise to end at 82.68 per dollar.
Technical views by experts
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities observed that the Nifty successfully surpassed the 20 and 50-day SMA (simple moving average) resistance mark which is largely positive. It has also formed a long bullish candle on weekly charts that suggest a further uptrend from the current levels.
"For Nifty, 17,500 and 17,400 would act as key support zones. Above this, the index could move up to 17,800-17,950. On the flip side, if the index closes below 17,500 or 50 day SMA mark, it could slip to 17,400-17,350,” said Athawale.
Palak Kothari, Senior technical analyst at Choice Broking highlighted that the Nifty formed a bullish candle on a weekly chart suggesting strength in the counter. The index has been trading above 21 DMA (daily moving average), adding bullishness to the prices. Momentum indicator 'stochastic' traded with a positive crossover, suggesting an upside moment in the upcoming session.
"The support for Nifty has shifted around 17,390 while on the upside, 17,700 may act as an immediate hurdle," said Kothari.
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.