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Taking Stock | Record run continues; Sensex crosses 63,000, Nifty above 18,750

The Indian equity benchmarks ended higher for the seventh consecutive session on November 30, scaling record highs amid buying across sectors barring PSU banks.

At close, the Sensex was up 417.81 points, or 0.67 percent, at 63,099.65, the first time it crossed the 63,000 mark. The Nifty was up 140.30 points, or 0.75 percent, at 18,758.30.

After a firm start, the market remained flat in the first half but last-hour buying helped indices cross new milestones, with the Sensex hitting 63,303.01 and the Nifty crossing 18,800 for the first time to touch 18,816.05.

"Domestic market continued its quest for gains, boosted by FII inflows. However, markets will be sensitive to the Fed Chair’s remarks later in the day, as investors are expecting a moderation in the pace of rate hikes," said Vinod Nair, Head of Research, Geojit Financial Services.

An in-line comment would help sustain the rally, while loosening of COVID-19 restrictions in China would provide relief to global markets, he added.

For the month of November, the Sensex gained 3.87 percent and the Nifty 4.14 percent.

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Stocks and sectors

M&M, Hindalco Industries, Grasim Industries, Bajaj Auto and UltraTech Cement were among the top Nifty gainers. The losers included IndusInd Bank, SBI, HCL Technologies, ITC and Sun Pharma.

Except PSU bank, which was down 1.3 percent, all Nifty sectoral indices ended in the green. Auto, energy, FMCG, infra and metal indices were up 1-1.8 percent.

The BSE midcap index rose a percent and smallcap index added 0.6 percent.

On the BSE, the power index added 2.3 percent, metal index 2 percent, auto index 1.7 percent and the realty index rose 1.5 percent.

Among individual stocks, a volume spike of more than 400 percent was seen in TVS Motor Company, ABB India and Indian Hotels.

A long build-up was seen in GMR Infrastructure, Jindal Steel and M&M, while short build-up was seen in Canara Bank, Glenmark Pharma and L&T Infotech.

On the BSE, more than 100 stocks touched their 52-week high. These included Oriental Hotels, Britannia Industries, Mazagon Dock Shipbuilders, South Indian Bank, Union Bank Of India, ICICI Bank, Exide Industries, Dhanlaxmi Bank and DCB Bank.

Outlook for December 1

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

After a brief consolidation near 18,600-18,700 in the last couple of sessions, the Nifty surpassed the barrier of 18,700 towards the end of the session. It saw fresh momentum build up as it crossed 18,700.

The hourly and the daily upper Bollinger Bands expanded along with the price action, which assisted the bulls. Thus, the Nifty is set to test 19,000 on the upside.

On the downside, 18,700-18,600 has become the short-term base for the Nifty. Reversal for the short-term bullish stance can be trailed below this support zone.

Santosh Meena, Head of Research, Swastika Investmart

India’s benchmark indices are scaling new highs, shrugging off volatility in global markets. The broader market, too, is trying to catch up, as the Nifty midcap and smallcap indices are still below their all-time highs.

The beauty of the rally is that the market is finding support from new sectors every day. In the second half of 2022, there is a clear trend of outperformance of Indian equity markets.

The trend is likely to continue despite the fact that we are trading at expensive valuations compared to most global peers, as our fundamentals are strong and we have strong support from domestic money.

The market will react to Jerome Powell's speech on December 1 and auto sales figures will cause stock-specific movements. The attention will then shift to the Gujarat election and the RBI policy.

Globally, news from China may continue to cause volatility, while the dollar index, US bond yields, and crude oil prices will be other important factors.

The only concern is that the market is overbought, which may lead to some pullback or consolidation at higher levels but there are no major signs of weakness.

Technically, Nifty has immediate targets of 18,888 and 19,000, while on the downside, 18,700 and 18,500 will act as strong supports.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Sentiment turned extremely bullish towards the closing stages, as renewed foreign institutional buying propelled both the benchmark indices to fresh highs.

Strong European markets opening further bolstered sentiment ahead of the Q2 GDP data announcement.

Technically, the Nifty holds the uptrend continuation formation and has also formed a long bullish candle on daily charts which is broadly positive.

However, the intraday texture is mildly overbought, hence we can expect some profit booking at higher levels.

For the trend-following traders, 18,650 will be the decider level, above which the index can move to 18,900-18,950. However, traders may prefer to exit from their long positions if the index trades below 18,650. It can then slip to 18,600-18,550.

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