The first day of the November series, October 27, saw a strong market bounce after a gap-up opening. Experts continue to believe that bears should be in charge, nevertheless. Any uptrend is likely to be sold into, and at best the market may consolidate below 19,500 with major support at last week’s low of 18,800, according to experts. They added that if the said low is broken, selling pressure may extend up to levels of 18,600–18,500, while 19,200–19,300 will be the first resistance levels on the higher side, followed by 19,500.
The Nifty50 surged 190 points, or 1%, to close above 19,000, while the BSE Sensex gained 635 points, or 1.01 percent, to 63,783. Bulls found solace in the wider markets’ strong recovery, as seen by the Nifty Midcap 100 and Smallcap 100 indexes increasing 1.5% and 2%, respectively, and the India VIX plunging 7.03 percent to 10.91 levels. Can the rally hold given the market’s pessimistic outlook? Global indications this morning are not very encouraging as Asian markets are mostly down and US futures are gradually rising following a week of losses.
An encouraging opening for Indian stocks is shown by the GIFT Nifty. This week, the US FOMC will announce its interest rate decision. In the meanwhile, the primary market here will be a flurry of activity as about seven initial public offerings (IPOs) will list. RIL will be a stock to keep an eye on today as it outperformed expectations in the second quarter. SBI Card, BPCL, M&M Financial, and TVS Motor will also be highlighted, among other companies. Cello World’s Rs. 1,900 crore initial public offering (IPO) opens for subscription today.