Friday's Opening Bell Preview: Essential Pre-market Insights
On October 5, the market rebounded, crossing the 19,500 mark, with a bullish candlestick pattern forming on the Nifty's daily charts.
image for illustrative purpose
On October 5, the market rebounded, crossing the 19,500 mark, with a bullish candlestick pattern forming on the Nifty's daily charts. Experts suggest potential resistance at 19,600-19,700 levels if the uptrend continues, with key support at 19,400-19,350. Positive PMI data and falling oil prices boosted sentiment, especially in banking & financial services and technology stocks.
The benchmark indices opened with gains, with the BSE Sensex rising 406 points to 65,632, and the Nifty50 climbing 110 points to 19,546, ahead of the Monetary Policy Committee's outcome on October 6.
Technical Research Analyst Nagaraj Shetti notes the formation of a bullish 'island reversal' pattern, indicating a potential short-term target of 19,726. However, caution is advised due to the persistent lower tops and bottoms pattern on daily charts.
On the broader market front, the Nifty Midcap 100 index remained flat, and the Nifty Smallcap 100 index rose 0.6 percent. The India VIX declined 5.94 percent to 10.94 levels, indicating reduced volatility.
The Bank Nifty also showed strength, closing with a 249-point gain at 44,213. It formed a small-bodied bullish candlestick pattern on the daily charts. Immediate resistance lies at 44,400-44,500, with potential for a move towards 45,000. The RBI policy decision may influence the index's direction.
In the options data, maximum Call open interest (OI) was at 19,600 strike, while maximum Put OI was at 19,500 strike, indicating important levels for the Nifty in upcoming sessions.
Stocks with high delivery percentage included Bharti Airtel, Torrent Pharma, HDFC Bank, Shriram Finance, and Britannia Industries.
Market activity also included 49 stocks with long build-up, 30 stocks with long unwinding, 54 stocks with a short build-up, and 53 stocks with short-covering.
Foreign institutional investors (FIIs) sold shares worth Rs 1,864.20 crore, while domestic institutional investors (DIIs) bought Rs 521.41 crore worth of stocks on October 5.
