Sensex, Nifty Resume Upmove After A Day's Pause, Led By Metal Stocks

The S&P BSE Sensex and NSE Nifty 50 indexes resumed their upmove after a day’s pause in the previous session, led by gains in metal, banking and financial services shares. The benchmarks staged a gap-up opening, but turned volatile in late-morning deals owing to expiry of November future and option contracts. However, late buying in banking shares lifted the benchmarks to intraday highs towards the close of the session. HDFC Bank, HDFC, Bajaj Finance, Axis Bank and Kotak Mahindra Bank were among the top movers in the Sensex.

The Sensex rose 432 points or 0.98 per cent to close at 44,260 and Nifty 50 index surged 129 points or 1 per cent to settle at 12,987.

In the November series, Sensex rose 11 per cent, Nifty climbed 10.71 per cent and Bank Nifty index surged 22 per cent.

Rahul Sharma, Market Strategist & Research Head, Equity99 Advisors said, “In an extremely volatile trading session, the benchmark indices settled higher with more than 60-65 per cent roll-over of open positions into December 2020 series. With relaxation in SEBI norms in margin regulations, we expect action to start shifting to mid-cap stocks. The underlying trend remains intact on the long side. On the upside, we expect Nifty-50 to face resistance at 13,010 levels and thereafter, at 13,310-13,320. We continue to remain bullish overall, with minor intermediate corrections.”

In today’s session, buying was visible across sectors; all the 11 sector gauges compiled by the National Stock Exchange ended higher, led by the Nifty Metal index’s 3.85 per cent gains. The Nifty Bank, Financial Services, PSU Bank and Pharma indexes also rose over a per cent each.