On November 11, the Indian benchmark indices, Sensex and Nifty, made a significant comeback, extending their positive performance for the second consecutive day. The stock market surged on the back of favorable sentiment surrounding a potential trade deal between the US and India. After struggling initially, both indices managed to recover and close with promising gains. The Sensex rose by 335.97 points, marking a 0.40% increase to reach 83,871.32, while the Nifty climbed 120.60 points, a 0.47% rise, closing at 25,694.95.
The market displayed a mixed performance across different sectors, with IT, automotive, and metal stocks making notable gains. In contrast, financials, real estate, and pharmaceutical stocks struggled, indicating varying participation levels among traders. In the broader market, the midcap index reported gains of over half a percent, whereas the smallcap index saw a slight decline.
Market analysts commented on the day's trading actions, highlighting an overall positive sentiment among investors. Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, noted that the early session weakness gave way to a robust recovery, allowing the Nifty to close near the 25,700 mark. This active participation from the broader market helped alleviate some of the earlier anxieties among traders.
Looking ahead, the outlook remains cautiously optimistic as market participants anticipate further upward movements. According to Parekh, if the Nifty can decisively break above the 25,750 level, it could pave the way for further increases toward targets of 26,100 and 26,500. Support for the index is evident at the 25,300 level.
In addition, Parekh also discussed the Bank Nifty's performance, which experienced a notable rebound after dipping to the 57,200 mark. It closed the session near the 58,150 level, indicating a bounce-back momentum. She forecasts further upward movement, contingent upon sustaining support near the 50EMA at the 56,700 mark. The day’s trading support is seen at 25,550, with resistance projected at 25,900, while the Bank Nifty is expected to trade within a range of 57,800 to 58,800.
Moreover, specific stock recommendations were provided for intraday trading. Investors looking to make maneuvers in the market could consider purchasing IREDA at ₹149 with a target of ₹154, stopping at ₹147. Another recommendation includes Samvardhana Motherson at ₹104 with an anticipated target of ₹112 and a stop loss at ₹100. Lastly, for those interested in renewable energy, buying Suzlon Energy at ₹58 with a target of ₹62 and a stop loss at ₹56 was suggested.
In conclusion, amid a backdrop of mixed sector performance, the Indian stock market exhibited resilience reflecting optimistic sentiments regarding potential trade progress between major economies. Investors should remain alert to support and resistance levels while considering selective stock purchases based on market conditions.