Market may retain positive trend

Sensex and Nifty-50 gained over one per cent after a day of profit booking in the previous session, with front line stocks as well as the broader market gaining as the future and options contracts for September month expired.

Sensex crossed 39000 mark intra-day and touched a high of 39158.07 and finally closed at 38989.74 up 396.22 points or 1.03 per cent. Broader Nifty-50 Index closed at 11571.20 up 131 points or 1.15 per cent.

In the broader market BSE Mid-Cap Index gained 0.92 per cent while BSE Small-Cap Index gained 0.42 per cent.

Technical View
Rahul Mishra, Assistant Vice President (Derivatives), Emkay Global Financial Services said, “Nifty started September month around 10800 level and was struggling to cross the 11000 resistance as the initial stimulus from FM could not help improve investor's sentiments till the corporate tax cut was announced. Nifty is currently trading above 50 and 200 day moving average and we believe 11300 will be the support level, 11600 will be good resistance and we may see supply around this level.”

“From derivatives point of view, FPIs have doubled their position in Index future during the month so far. The monthly option data suggest that the Nifty range for the month of October will be 11000-11500, however, 12000 call holds a decent open interest making it the next resistance,” Mishra said.

Rohit Singre, Senior Technical Analyst, LKP Securities said, “Nifty-50 expired September series at 11571 with gains of nearly 6 per cent. Immediate support for Nifty is coming near 11510-11450 zone and resistance is coming near 11625-11680 zone, immediate support for Nifty Bank is coming near 29850-29,650 and resistance is coming near 30300-30550”.

Market View

Vinod Nair, Head of Research, Geojit Financial Services said, “Previous session’s global selling was based on US political drama which reversed on Thursday. While Indian market recovered from profit booking from the sharp gain. Momentum was broad based with auto, banks and metals leading the gains on expectation of better demand during festive season. This positive trend is likely to be maintained in combination with ease in trade-war & domestic stimulus.”