Taking Stock: Sensex holds 40K, gains nearly 3% for the week

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The Nifty50 formed a Doji candle on the daily charts and a bullish candle on the weekly charts

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A historic week for Indian markets as the S&P BSE Sensex hit a fresh record high of 40,392 on October 31 and closed the week with gains of 2.8 percent.
The Nifty 50 managed to touch 11,900 levels on Friday but the momentum fizzled out at higher levels as investors preferred to book profits.
Here's a look at the final tally on D-Street for Friday – the S&P BSE Sensex rose 35 points to 40,165 while the Nifty 50 closed 13 points higher at 11,890.
For the week, the S&P BSE Sensex rallied 2.83 percent while the Nifty 50 closed with gains of 2.65 percent for the week ended November 1.
Investors’ wealth in terms of the average market capitalisation of BSE-listed companies rose by Rs 4.78 lakh cr to Rs 154.09 lakh cr recorded on November 1 from Rs 149.31 registered on October 25.
In terms of sectors, plenty of action was seen around metals, telecom, and Banks while profit booking was seen in consumer durables, IT, and auto index.
Muted auto sales data, as well as GST data along with disappointing core sector data, weighed on sentiment at higher levels. But, the momentum is likely to continue in the near-term, and investors could use the dips to buy.
Goods and Services Tax (GST) collections for the month of October 2019 stood at Rs 95,380 crore, down 5.29 percent, Ministry of Finance data showed.
"Mixed local cues combined with not so encouraging global markets capped movement of the benchmark index. Meanwhile, there was no shortage of opportunities on the stock-specific front which kept the participants busy. Mostly sectoral indices ended higher wherein media, metal and banking were the top gainers," Ajit Mishra Vice President, Research, Religare Broking.
"We reiterate our bullish view on the Nifty index and suggest continuing with “buy on dips” approach. However, participants should maintain extra caution in the stock selection as we’ve already seen a decent rise across the board," he said.
Mishra further added that almost all the sectoral indices are contributing to the rally, we feel banking and metal can outshine the others in the near future so traders should plan their trades accordingly.
Sectorally, the S&P BSE Metal index gained 2.5 percent, followed by the S&P BSE Telecom index was up 1.49 percent, and the Banking Index gained 0.84 percent.
In terms of losers, the S&P Consumer Durable index slipped 1.1 percent followed by IT which was down 0.7 percent, and the Auto index fell 0.75 percent.
Top Sensex gainers: Vedanta (up 3.1%), Tata Steel (up 5.09%), and IndusInd Bank (up 5.18%)
Top Sensex losers: YES Bank (down 5.4%), TCS (down 3%), and M&M (down 2.8%)
Stocks in the news on November 1:
Lupin: Shares of Lupin ended 2 percent higher after a media report indicated the pharma company was in talks to sell its Japanese generics subsidiary.
IndusInd Bank: IndusInd Bank jumped over 5 percent on finalisation of a potential candidate as Managing Director and CEO. Pursuant to the recommendation of the Nomination and Remuneration Committee, the board of directors on October 30 finalised a potential candidate for the position of MD and CEO, the lender said in a BSE filing.
Vodafone Idea: Vodafone Idea ended over 10 percent higher after the management denied reports of exiting its India business.
Yes Bank: Yes Bank ended over 5 percent lower on November 1 after Morgan Stanley maintained its underweight rating on the stock with a target of Rs 55 per share. It believes the risk-reward is unattractive. The company is scheduled to come out with its September quarter results later in the day.
Technical View:
The Nifty50 formed a Doji candle on the daily charts and a bullish candle on the weekly charts
Indecisive formations for 3 consecutive sessions on the daily chart is suggesting that momentum in the market is slowly dwindling down
However, weakness shall get more pronounced on a close below 11800 levels.
A strong close above 11950 levels then it may head to test lifetime highs placed around 12103 levels but that rally
Three levels: 11843, 11918, 12103
Max Call OI: 11800, 12000
Max Put OI: 11600, 11500
Source by- Moneycontrol
Professional Advisory  For Help And Support- AllianceResearch


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