Stock market today: Nifty 50, Sensex jump 1% each; midcaps, smallcaps underperform
Stock market today: The Indian stock market rebounded, with Sensex gaining 843 points and Nifty 220 points after earlier losses. Sectoral indices like Nifty FMCG and Private Banks rose, while Metal and Realty indices declined. Overall market capitalization increased by ₹1 lakh crore.
Stock market today: The Indian stock market experienced a dramatic turnaround on Friday, September 13, with benchmark indices Sensex and Nifty 50 rebounding strongly to gain about 1 per cent, recovering from earlier losses.
The Sensex crashed over 1,200 points, or 1.5 per cent, to 80,082.82, while the Nifty 50 plunged nearly 370 points, or 1.5 per cent, to 24,180.80 during the session. However, the indices rebounded sharply and closed with solid gains of 1 per cent.
The Sensex closed with a gain of 843 points, or 1.04 per cent, at 82,133.12, while the Nifty 50 settled 220 points, or 0.89 per cent, higher at 24,768.30.
The BSE Midcap index slipped 0.08 per cent and the Smallcap index fell 0.29 per cent. The overall market capitalisation of BSE-listed firms rose to ₹459 lakh crore from ₹458 lakh crore in the previous session, making investors richer by about ₹1 lakh crore in a single session.
Sectoral indices today
Among the sectoral indices, Nifty FMCG, Consumer Durables and Private Bank indices rose up to a per cent. Nifty Bank, Financial Services and IT indices climbed over half a per cent.
On the flip side, Nifty Metal, Media and Realty indices declined about half a per cent.
What drove the Indian stock market today?
Indian stock market recovered smartly on sharp gains in select heavyweights such as Bharti Airtel, ICICI Bank, HDFC Bank, ITC and Reliance Industries.
A fall in domestic retail inflation also offered some comfort. Retail inflation based on the consumer price index (CPI) fell to a three-month low of 5.48 per cent in November from the 14-month high of 6.21 per cent in October.
"The domestic market smartly recovered from the day’s low and moved out of the consolidation path led by index heavyweights. A gradual easing in food inflation and a price hike by FMCG companies, along with a recent correction in valuation, supported the sector to outperform," said Vinod Nair, Head of Research, Geojit Financial Services.
"Currently, the market is anticipating a revival in consumer spending, driven by the festive season and year-end holidays, adding to the sentiments. Additionally, the expectation of an increase in US spending is propelling the IT sector," Nair added.
Prashanth Tapse, Senior VP (Research) at Mehta Equities also underscored that markets quickly bounced back from its weak opening and surged ahead in intraday trades as moderating inflation and uptick in IIP growth numbers enthused investors to resort to value buying in banking, IT and telecom stocks.
Technical outlook for Nifty 50
Nifty reclaimed 24,750, which indicates that the trend may remain positive going forward. Experts see support for the index near 24,550.
"On the lower end, the Nifty found support around the neckline of the inverse head-and-shoulders pattern, completing a retest before rallying towards higher levels. Today's low also coincides with the 38.2 per cent retracement level of the previous rally. Going forward, the trend is likely to remain strong, with the potential to reach 25,000 and higher in the short term. On the lower end, support is placed at 24,550," said Rupak De, Senior Technical Analyst, LKP Securities.
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, pointed out on the daily charts, the Nifty 50 has tested the 20-day moving average (24,200) and witnessed a sharp upmove.
"The Index has formed an Inside Bar candle stick pattern on the weekly charts and thus making the extremes of the previous candle, i.e. 24,858 – 24,009, crucial levels to watch out for the upcoming week. We expect the pattern to break out on the upside and continue with the positive momentum towards 25,125 during the upcoming week," said Gedia.
"On the downside, 24,420 – 24,400 is the crucial support zone. As far as derivative data is concerned, 24,600 CE saw a sharp short covering and Put writing was witnessed at 24,500 – 24,400 strikes. The Nifty weekly PCR witnessed an improvement from 0.70 to 1.04, suggesting a bullish sentiment. Overall, we expect positive momentum to continue," Gedia said.
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