Indian Equity Benchmarks Surge On Tech And Financial Stock Gains
Dear Trader…
Markets staged a recovery on the weekly expiry day and gained over half a per cent. After the initial gap-up start, Nifty Future hovered in a narrow band till the end and finally settled at 19565.00 levels. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein auto and IT posted decent bounce. The market breadth also ended on the advancing side, thanks to an uptick in the smallcap index.
At present, select IT majors are at the forefront while others are playing supportive roles on a rotational basis. We need improvement in the broader participation to change the market course. Amid all, it is prudent to keep a check on leveraged positions and prefer index majors over others.
FII and FPIs, on Thursday, saw a net sales of Rs.1864.20 crore in the cash segment. A total of Rs.12,168.28 crore was sold against a total purchase of Rs.10,304.08 crore. Domestic institutional investors saw a net purchase of Rs.521.41 crore in the cash segment. A total of Rs.7265.77 crore was sales against a total purchase of Rs.7787.18 crore.
Meanwhile, India’s services sector growth strengthened in the month of September, as a positive demand environment boosted intakes of new business and output volumes. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index rose at 61.0 in September from 60.1 in August. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- surged to 61.0 in September as against 60.9 in August.
The latest data showed a substantial increase in new business placed with Indian service providers, one that was the second-fastest since June 2010. Besides the rise in total sales, there was an upturn in demand from abroad, particularly from clients based in Asia, Europe and North America. The overall rate of growth was marked and one of the quickest seen in the series history (since September 2014), despite slowing to a three-month low.
Technically, the important key resistances placed in Nifty Future are at 19606 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional upmove with immediate resistances seen at 19636 – 19676 levels. Immediate support is placed at 19505 – 19474 levels.
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