Nifty, +1.4%; Sensex, +1.5%; Nifty Midcap, +1.3%; Nifty Smallcap, +0.8%; Model Portfolio, +0.2%.
Daily Market Review
Market Status: Confirmed Uptrend
Benchmark indices registered strong gains following its global peers. While Nifty gained 160 points to close 1.4% higher, the Sensex closed with a gain of 582 points. Gains in the leading index were led by Nifty Auto (+4.3%), Metal (+4.0%), IT (+1.5%), and Bank (+1.2%). Metal index gain was led by Jsw Steel (+6.8%) and Tata Steel (+6.9%). From the Auto sector, Tata Motors soared more than 16% on the back of its strong Q2 numbers. The broader market moved in tandem with the frontline indices with Nifty Midcap and Smallcap closing 1.3% and 0.8% higher, respectively.
The US Fed interest rate decision (FOMC will meet on Wednesday) and PMI data for manufacturing (due on Friday), besides corporate earnings, will be the key driving factors for the market this week.
The market breadth was in favor of gainers. Of the 2,157 stocks traded on the NSE, 1,055 advanced, 732 declined, and the rest remained unchanged.
Looking ahead, we would like Nifty to hold its key moving averages with good participation from Midcap and Smallcap stocks. With Nifty in a Confirmed Uptrend, we recommend focusing on non-extended ideas trading above their respective moving averages with RS lines at or near new highs. On the flip side, if Nifty registers additional distribution days, it will be a subtle sign of weakness in the market.
Bharti Airtel got board’s approval to defer the release of Q2 FY20 results till November 14 as management needs more clarity on the AGR issue arising out of recent judgment of Honorable Supreme Court. The stock was down 3.5%.
Hindustan Zinc reported Q2 results today. Revenue down 5.2% y/y to Rs 4,461 crore, PAT up 18% q/q to Rs 2,081 crore. Mined metal production stood at 219 kt, up 3% q/q. The stock was up 1.5%.
Wonderla Holidays reported Q2 results today, after market hours. Net revenue marginally up to Rs 43.92 crore. PAT was up 24% to Rs 42.19 crore for the half year. Footfall grew 60% in Kochi and 5% in Hyderabad during Q2 FY20. The stock closed 0.9% lower.
Skf India reported Q2 results today. Revenue from operations dipped 2.4% y/y to Rs 747 crore. Net profit grew 0.4% to Rs 84.6 crore. The stock was up 2.1% today.