Nifty to reclaim 11,350 mark; CAMS & Chemcon set for a debut on D-Street!

After a sideways movement during the last couple of days, the bulls seem to announce its authority at the dawn of October month. SGX Nifty indicates that the bulls will hit a century at the opening bell as it trades up by 105 points at 11,359 level. The overnight positive cues from Wall Street are helping the cause.

Further, the Government of India released new guidelines for Unlock 5.0, where cinema halls and multiplexes will be allowed to reopen from October 15 but operate only with 50 per cent seating capacity. Hence, keep an eye on the stocks of multiplexes as they can see good momentum. Apart from this, keep your focus on auto stocks as well as auto sales numbers will start coming today.

The two new debutants on the stock exchanges i.e. CAMS and Chemcon Speciality Chemicals would also garner attention.  All in all, the first day of October month is likely to be an action-packed day.

Major Asian indices like Hong Kong’s Hang Seng and China’s Shanghai Composite are closed for a holiday while Japan’s Nikkei 225 was almost flat on Thursday.

If one needs to summarise Wednesday’s action on D-Street, it was a cut-copy-paste of the last session as the markets moved both ways liked it did in the previous session except that on Wednesday, the markets closed with modest gains. Sensex settled above its important psychological level of 38,000 and Nifty settled just shy of the 11,250 mark. The broader market underperformed the benchmark indices with Nifty Mid-cap and Small-cap ending the day in negative terrain. As a result, the advance-decline ratio was skewed towards the decliners, where 1,001 stocks ended in red, while 855 stocks ended in the green. On the sectoral front, Nifty FMCG and Nifty Pharma were the top gainers while, on the flip side, Nifty Metal and Nifty PSU Bank were the top losers.

At one point of time, the bulls on the Wall Street were on cloud nine; however, volatility in the last leg of the trade wiped out bulk gains as volatility triggered after Senate Majority Leader Mitch McConnell poured cold water on stimulus hopes as he told reporters that negotiators remain “very, very far apart”.   

Despite this, all three major US stock market indices ended with solid gains, where Dow outperformed its counterpart during the day and touched an intraday high of 28,026 but it closed at 27,782 up by 1.2 per cent. S&P 500 and Nasdaq were up by almost 0.8 and 0.7 per cent, respectively. Meanwhile, the rising cases of Coronavirus in the European region turned the market participants skeptical about the progress of economic growth, and as a result, stock ended in negative terrain.