Stock market indices Sensex and Nifty climbed nearly 1 per cent each in Monday’s trade, broadly in line with rally seen in Asian shares, as China pledged to significantly increase debt, even as it left investors globally guessing on the overall size of the stimulus.
US stocks had earlier climbed on Friday on hopes of a November Fed rate cut and strong bank earnings. A fall in crude oil prices improved the market sentiment. Stocks also gained ahead of Reliance Industries Ltd and HCL Technologies Ltd quarterly earnings scheduled for later today.
- Massive Rally in MCX Silver Next Week, Target 5,000 Points
- I See a 25 Basis Point Rate Cut; Neal Bhai
- Jackpot Call: MCX Silver Tips Today [11 October 2024]
- Neal Bhai’s MCX Gold Silver Diwali Jackpot call was a hit, Commodity traders made a lot of Money
- Jackpot Call: MCX Gold Tips Today [11 October 2024]
At 1 pm, the BSE Sensex was trading 564.32 points, or 0.69 per cent, higher at 81,945.68. The NSE Nifty was trading 148.75 points, or 0.6 per cent, higher at 25,113. Tech Mahindra, Larsen & Toubro, HDFC Bank, Kotak Mahindra Bank and ITC gained up to 3 per cent.
Technically, the 50-Day EMA for Nifty positioned at 25,050-25,080 was seen as a significant barrier, which has been breached today with thge day’s high of 25,159.75. Brokerage Angel One said a decisive breakthrough above this level would be instrumental in accelerating the bullish momentum toward higher levels.
“Additionally, the intermediate resistance zone is centered around 25,250-25,300, aligning with the 20-day EMA, and a strong breakthrough at this level could potentially trigger the next phase of the rally from a positional perspective. At the lower end, the recent low of 24,800-24,700 is expected to offer robust support and mitigate any potential setbacks,” it said.
Valuations of Indian equities, especially small & mid-caps are trading at significant premium compared to their long term averages. But the sustained inflows from DIIs & strong corporate fundamentals will act as a as a “Suit of Armour” and cushion domestic equity market valuations in the wake of geopolitical events and FII outflows, Motilal Oswal Private Wealth. Additionally after witnessing four years of double digit earnings growth, it seems appropriate to moderate the expectations on earnings growth, it said.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said IT and banking stocks are likely to remain resilient on the back of expected good Q2 numbers. But he sees limited scope for the market to move up sharply from here.
“FY25 earnings expectations have been downgraded by most analysts. The uncertainty surrounding the US presidential elections next month also is likely to weigh on markets along with the geopolitical tensions in the Middle East,” he said.
