November trade begins on a weak note

After a big rally in October, first day of November saw lack lustre trading session. Sensex gained for sixth consecutive session as it closed 35.98 points up at 40,165.03 gaining just 0.09 per cent. The BSE index touched an intra-day high of 40,283.30 and low of 40,014.23.

Nifty-50 index closed 13.15 points or 0.11 per cent higher at 11,890.60. The broader market outperformed with BSE Mid Cap Index up 0.18 per cent and BSE Small Cap Index up 0.32 per cent. Sector wise BSE Auto index fell 0.75 per cent as October month sales announced so far were mixed. Other laggards included BSE Capital Good (-0.72 per cent), Consumer Durables (-1.16 per cent),  IT (-0.77 per cent).  The gainers included BSE  Metal (2.50 per cent), Telecom (1.49 per cent), Bankex (0.84 per cent), FMCG (0.46 per cent) and Healthcare (0.56 per cent). Foreign portfolio investors were net buyers of equities worth `533.37 crore while the domestic institutions booked were net sellers by `136.50 crore.

Technical View
Mustafa Nadeem, CEO, Epic Research said, “November rollover data showed much better numbers with Nifty seeing above average while the underperformance from Bank Nifty continued. So we do expect Nifty to continue its outperformance with muted action in Nifty bank, which is skewed to private banks.”

“In the coming week, we will have earnings numbers from HDFC, Dabur, Tata Steel, Can bank and also Divis and Titan which have been outperforming. A lot will also depend on how global markets are performing as they will direct domestic sentiments. We remain bullish as far as Nifty is sustaining above 11700 and dips should be utilized,” he said.

Sameet Chavan, chief analyst-Technical and Derivatives, Angel Broking said, “Sensex already posting a fresh high, the Nifty is not going to shy away for a long time. Soon, we would be witnessing Nifty traversing the 12,000 mark to go beyond its record high of 12103.05. Before this some brakes seems to have applied on the recent momentum.”

Market view

Sanjeev Zarbade, vice president, Private Client Group Research, Kotak Securities said, “Global equities were flat or sideways during the week. Market sentiment in the US was more driven by the developments on the US China trade deal. While in recent weeks, the trade talks seemed to be moving in the right direction but during the week, the Chinese have expressed doubts whether long term trade deal is possible, leading to some weakness in US stocks. The BSE-30 Index gained 2.9 per cent in the past week. Markets were upbeat on reports of better-than-expected festive sales and slightly better-than-expected 2QFY20 results as well as progress on trade disputes between US and China and a 25 bps rate cut by the US Fed. FPIs bought equities worth $1.1 billion over the past five trading sessions while domestic institutional investors sold $67 million worth of equities,” Zarbade said.