Sensex, Nifty snap 3-day losing streak; here’s what experts make of today’s trading session

Domestic benchmark indices snapped a three-day losing streak to end with gains on Monday. S&P BSE Sensex ended 143 points or 0.36% higher at 39,757 points while Nifty 50 closed at 11,669. Financials were leading the index today with IndusInd Bank surging 7% and ICICI Bank zooming 6.2% during the day, followed by Axis Bank, and HDFC. Index heavyweight Reliance Industries closed 8.6% lower today after having slipped 9% during the day. Volatility was high as the benchmark index was continued to dance between gains and losses during the day.

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Global shares recovered from one-month lows on Monday as upbeat Chinese and European PMI data offset new lockdowns in Europe, even as investors prepared for more volatility arising from the U.S. presidential election. Markets have shown some signs of stability ahead of the US Presidential elections, however a negative advance decline ratio does not give enough confidence. Nifty could face resistance in the 11775-11810 band while 11608 could provide support in the near term.”

S Ranganathan, Head of Research at LKP Securities –

“Ahead of the US elections, we witnessed a highly volatile trading session today with Reliance giving way. However indices managed to end in the green led by Financials which was indeed a treat to watch. Few high profile Realty names were the stars in the broader market today.”

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –

“11700-11750 should act as stiff resistance for the Nifty. If we can get past that, there is a chance we resume the upward trajectory of the market and nullify the downside target of 11400. As long as we are below 11700, the markets are in bearish terrain. On the upside, if we get past 11750 on a closing basis, we cannot rule out the Nifty reclaiming the level of 12000 and above.”

Vinod Nair, Head of Research at Geojit Financial Services –

“The weak opening reflected the rough waters market entered last week. However, some recovery was seen as investors showed interest in banking stocks as major players announced Q2 results, beating the street estimates with positive outlook. Additionally, the banking stocks are attempting to price, in expectation of the positive SC verdict on moratorium. The Indian market is expected to be volatile, amidst mixed global sentiments due to increasing covid cases, US election and delayed stimulus.”

Ajit Mishra, VP – Research, Religare Broking –

“Reliance Industries witnessed sharp profit taking and slipped nearly 9% however strong results from ICICI Bank led to healthy buying interest in overall banking stocks. Meanwhile, indications were mixed from the global front. The broader market performance was mixed as the midcap index ended higher whereas smallcap index ended lower by 0.8%. On the sector front, a mixed trend was witnessed as banking, telecom and realty were the top gainers whereas oil & gas, IT and auto ended lower. The buoyancy in the banking space saved the day for bulls however it was not an easy for the traders. We suggest focusing more on position management and limiting leveraged trades in such a market scenario as volatility is here to stay.”