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Summary: Sensex retires after reaching record levels; Will the rally survive?


S&P BSE Sensex, which reached a new record level of 40,392.22 on October 31, did not maintain the pace of closing the transaction, as investors posted profits at higher levels.

Nifty50 also failed to maintain 11,900 levels, which it regained for the first time since July 5 during the day.

Let's look at the last result on D-Street – S&P BSE Sensex increased by 77 points, closing at 40.29, while Nifty50 increased by 33 points, closing at 11.877.

In October, Nifty rose 3.5 percent, while in the October series, the index rose 2.6 percent.

Stable global signals thanks to interest rate cut by the US Fed, better than expected results of India Inc., solemn mood and buying by foreign institutional investors raised moods on D-Street.

Regarding sectors, a significant proportion of activities were observed in IT, public sector and real estate resources, while profit accounting was visible in metals and energy space.

When Sensex reached record levels, there are over 80 shares on BSE that reached the highest 52-week peak. These include Nestle India, Bajaj Auto, Pfizer, info Edge, HUL, Avenue Supermarts, Bata India, NIIT Tech and RIL.

Another important question for investors is – will the rally survive?

Well, given the expiration, some variation was expected. The Indian market has witnessed some sales pressure at higher levels, but still managed to close green. The width of the market is conducive to progress; the advance and fall ratio was 2: 1, which is a positive sign.

The upward trend remains intact as long as Nifty50 stays above 11,800 levels. And investors should stay in place. The volatility of the last hour may be due to expiration.

"The market is slowly moving towards the highest level in history, supported by quarterly profits and government actions to attract capital investment. In addition, strong economic factors such as favorable inflation, interest rates and mild oil prices will support long-term market sentiment, "Vinod Nair, head of research at Geojit Financial Services Ltd, said Moneycontrol.

"The strengthening of rupees with the increase in the inflow of FII indicates a change in the negative attitude of FII to emerging markets," he said.

The size of the market was the focal point when medium and small companies joined the event on Thursday, which is a positive sign. Index support is on 11,600 levels.

"We maintained our stubborn stance even in the slowdown phase and recommended that we keep the decline for a long time, which worked well. We continue our stubborn attitude and believe that the index will soon reach new highs. 11,600 is direct support for inheritance, "Manav Chopra, CMT, Head Research – Equity, Indiabulls Ventures Ltd.

"However, bankruptcy was relatively weak, but we still maintain our positive attitude towards the index. The SBI has seen rapid movement in the industry. Banknifty has almost tested our recommended 30 800 zone. Above 30 800 it will be a continuation of the positive trend for bankruptcy. A direct downside is the support of 29 700, which is why we recommend a long transition to the support zone, "he said.

Inventories and sectors:

Sectorally, the S&P BSE IT index rose 1.9 percent, followed by the telecommunications index and the real estate index. On the losers' front, metal and energy indices witnessed profit taking.

Wider markets – BSE Midcap and Smallcap exceeded the benchmark and closed 1.1 percent and 0.9 percent higher, respectively.

The best Sensex winners: Infosys, SBI and YES Bank

The best losers of Sensex: M&M, ICICI Bank and Tata Steel

Inventory in the news:

State Bank of India shares increased by 7 percent on October 31, after brokerage houses maintained their stubborn attitude towards shares, as management expects declines to be moderate from the next financial year 2020-2021.

United Bank of India shares gained in value on October 31 after the company posted profit in the quarter ended September 2019. Shares increased by 13%.

Dhanlaxmi Bank shares increased during the day by more than 12 percent on October 31 after the company released star numbers for the quarter ended September 2019.

Yes Bank shares increased 24 percent on October 31 after a private lender received a $ 1.2 billion binding offer from a global investor.

Syndicate Bank, a public sector lender, posted a profit of 251 Rs crore for the July-September quarter compared to a loss of 1,542.5 Rs crore in the same period last year. Inventories increased by 6 percent.

Quess Corp shares increased 9.5 percent after the company posted high earnings in the quarter ended September. Net profit for the second quarter of 2015 increased by 15.5 percent compared to the previous quarter and by five percent compared to the previous year.

Technical view:

Nifty rose for the fifth time in a row

The daily charts recorded the type of Doji candle

At the next session, if the index trades below 11 855 for 30 minutes, it may attract sales during the day, while weakness will be confirmed below 11 784 levels, which will emphasize sales pressure in the short term, experts suggest.

Any rally over 11,950 levels, without correction, will be short-lived. Therefore, it is recommended that investors book gains on long positions in rally above 11,950 or if they trade below 11,855 levels, experts say.

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