Taking Stock: Market breadth was in the gainers’ favor. 1,361 shares fell, 2,178 shares rose, and 121 shares remained unchanged.
The equity benchmarks ended a two-day losing streak on October 5 as a result of a recovery in world markets. The dollar index and US Treasury yields both slightly declined, which also boosted investor confidence. – Taking Stock
The Nifty50 was up 108.20 points or 0.56 percent at 19,544.30 at closure, and the S&P BSE Sensex was up 405.53 points or 0.62 percent at 65,631.57.
Due to the increase in the smallcap index, the market breadth was in favor of gainers. 1,361 shares fell, 2,178 shares rose, and 121 shares remained unchanged.
The Sensex benchmark reached an intraday high of 65,753 points throughout the day, while the Nifty50 reached an intraday high of 19,576 points.
Vinod Nair, head of research at Geojit Financial Services, commented on Thursday’s market developments by saying, “The positive signal from the PMI data and reversal in oil prices lifted the market confidence. Reduced selling by foreign institutional investors (FIIs) and a recovery in shares of banks and IT companies were also observed. Regarding RBI policy, the market anticipates that interest rates will remain stable because the prognosis for external demand shows a moderated trend, which raises concerns about potential disinflationary trends.
Sectors and Stocks
Larsen & Toubro, Bajaj Auto, Titan, TCS, and Infosys held the top positions in the Nifty50 index. Power Grid, Hindalco, NTPC, Tata Consumer Products, and Cipla were the biggest decliners, each experiencing a drop of between 0.5 and 1.2 percent.
Nifty IT led all sectors in closing gains, up 1%, followed by Nifty Auto, Nifty Infrastructure, and Nifty Bank indices. The Nifty PSU Bank, Nifty Pharma, and Nifty Metal indices, on the other hand, all experienced losses of up to 5%.
In the meantime, broader indices ended with mixed results. In contrast to the S&P BSE Smallcap index’s 0.6% gain, the S&P BSE Midcap index closed flat below 0.03 percent.
Individual stocks including JK Tyres, Force Motors, Coromandel International, and Ashoka Buildcon, among others, reached new 52-week highs. Conversely, the shares of Adani Total Gas and Navin Fluorine fell to 52-week lows.
Predictions for October 6
The head of Retail Research at HDFC Securities is Deepak Jasani.
On October 5, Nifty increased and formed a bullish island reversal. If you move below 19,458, this structure might be over. Nifty may now see resistance in the range of 19,665 to 19,734, while 19,333 may serve as support if 19,458 is broken.
SVP of Technical Research at Religare Broking, Ajit Mishra
Market players should wait for the Nifty to retake the short-term moving average (20 EMA) before reading too much into a single day’s bounce. At the moment, a few IT majors are leading the charge while others rotate into supporting positions. In order to modify the market’s trajectory, we need to increase broader participation. All things considered, it is wise to avoid taking on too much debt and to choose index majors.
