Indian Markets Gain Over 1%, Tracking Upbeat Global Cues
Markets made a firm start and gained over a per cent, tracking upbeat global cues. After the gap-up start, Nifty remained in a narrow range in the first half however buying in select heavyweights pushed the index higher as the session progressed. Consequently, it settled around the day’s high at 19,723.60 levels. All sectors participated in the move wherein realty, IT and auto were among the top performers. The broader indices also traded in sync and gained nearly a per cent each.
Nifty has decisively crossed the trend line hurdle and looks set to test 19808 now. Interestingly, noticeable contributions from heavyweights like Reliance, Infosys and TCS, which were on the sidelines, largely fuelled the up move. And, we expect their participation to continue thus reiterating our view to maintain a “buy on dips” approach and focus on stock selection.
Meanwhile, Wholesale price inflation (WPI) remained in the negative territory for the seventh month in a row in October 2023 at (-) 0.52 per cent on easing prices of food items. The negative rate of inflation in October 2023, is primarily due to a fall in prices of chemicals and chemical products, electricity, textiles, basic metals, food products, paper and paper products, etc. as compared to the corresponding month of the previous year.
Technically, the important key resistances placed in Nifty Future are at 19,770 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 19808 - 19880 levels. Immediate support is placed at 19,676 - 19,606 levels.
