Focus on 10,850 range

The Sensex ended 130.77 points higher at 35,980.93 while the Nifty gained 30.40 points at 10,802.20. The market was rangebound as investors turned cautious ahead of corporate earnings season. The midcap index fell 0.16 per cent while Small cap gained 0.17 per cent. On the sectoral front, Nifty PSU Bank gained the most, rising 2.77 per cent.

Pharma index climbed 1.5 per cent while Bank, Auto, Financial Service and Metal indices gained 0.4-0.8 per cent.

ICICI Bank (3.4 per cent), SBI (3 per cent), Axis Bank (2.1 per cent), ITC (0.92 per cent), Sun Pharma (4 per cent), Tata Motors (2.62 per cent) and Yes Bank (2.8 per cent) were leading positive contributors to the Nifty’s gains. While, HDFC Bank, HDFC, Kotak Mahindra Bank, Zee Entertainment and HUL were top losers among Nifty50 stocks.  TCS and Infosys were down by 0.2 per cent.

Technical view

Sameet Chavan, chief analyst-technical and derivatives at Angel Broking said that today’s up move was supported by heavyweight banking space, we will not be surprised to see index breaking out in the upward direction. For such development, a key level to watch out for would be 10,850. A move beyond this would trigger sharp short covering move to test 10,940 and beyond levels. On the flipside, 10,733 would be seen as a key support in the forthcoming session. Today, banking stocks were on a roll throughout the day. Apart from this so many high beta pockets kept buzzing and hence, one should focus on such potential candidates which may provide better opportunities.

Market view

Jayant Manglik, president, Religare Broking said, “The equity benchmark indices ended a highly volatile session on a positive note on the back of hopes of reform implementation by the government and supportive global cues. We continue to remain cautiously optimistic on the market in near term. The focus of investors would shift to Q3FY19 earnings season and domestic Marco data (IIP, CPI & WPI), which are likely to dictate the trend of the market. Further, market participants would closely monitor the progress of trade talks between US-China, behaviour of crude oil prices and fluctuation in currency as it would induce volatility. We would advise Investors to stay focused on selective blue chip companies while traders should strictly hedge their leveraged positions.

Columnist: 
Ashwin J Punnen