Home / Markets / Stock Markets /  Financials save the day for Nifty as RIL tumbles 9%. Key levels to watch now

Indian stock markets ended higher today as gains in heavyweight bank and financial stocks offset losses in Reliance Industries. The NSE Nifty 50 index closed up 0.23% at 11,669.15 and the S&P BSE Sensex ended 0.36% higher at 39,757.58. The country's biggest mortgage lender HDFC Ltd rose 6% after the company reported an upbeat profit for the quarter to September.

They also helped the Nifty Financials Index rise almost 4%. The Nifty Banking Index snapped a three-session losing streak to end 4.15% higher, led by private-sector lenders IndusInd Bank and ICICI Bank adding 6.3% and 7.3%, respectively, after they reported upbeat results on Friday.

Analysts attributed the sharp gains in financials to good results reported by a few companies and some short-covering.

Reliance Industries saw its worst day since March and ended 8.69% lower after the company on Friday reported a 15% fall in quarterly profit.

Here is what analysts said on today's market rally:

Vinod Nair, Head of Research at Geojit Financial Services

"The weak opening reflected the rough waters market the entered last week. However, some recovery was seen as investors showed interest in banking stocks as major players announced Q2 results, beating the street estimates with positive outlook. Additionally, the banking stocks are attempting to price, in expectation of the positive SC verdict on moratorium. The Indian market is expected to be volatile, amidst mixed global sentiments due to increasing covid cases, US election and delayed stimulus."

Ajit Mishra, VP - Research, Religare Broking Ltd

"The buoyancy in the banking space saved the day for bulls however it was not an easy for the traders. Global cues viz. upcoming US elections and updates on second wave of infections in the US and Europe will remain on participants’ radar. Besides, earnings and macroeconomic data on domestic front would be actively tracked. We suggest focusing more on position management and limiting leveraged trades in such a market scenario as volatility is here to stay."

Deepak Jasani, Head of Retail Research, HDFC Securities

"Global shares recovered from one-month lows on Monday as upbeat Chinese and European PMI data offset new lockdowns in Europe, even as investors prepared for more volatility arising from the U.S. presidential election. Markets have shown some signs of stability ahead of the US Presidential elections, however a negative advance decline ratio does not give enough confidence. Nifty could face resistance in the 11775-11810 band while 11608 could provide support in the near term."

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

"11700-11750 should act as stiff resistance for the Nifty. If we can get past that, there is a chance we resume the upward trajectory of the market and nullify the downside target of 11400. As long as we are below 11700, the markets are in bearish terrain. On the upside, if we get past 11750 on a closing basis, we cannot rule out the Nifty reclaiming the level of 12000 and above."

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