The mood on Dalal Street was festive as investors looked to make their symbolic first trades of the year, a custom believed to bring prosperity and good luck.
A favorable alignment of global and domestic cues fueled optimism in the run up to Diwali Muhurat trading session. Analysts said better-than-expected corporate earnings in the second quarter, improving macroeconomic indicators and steady domestic inflows are expected to keep overall sentiment constructive.
In the broader market, smallcaps and midcaps showed bigger strength with Nifty Smallcap 100 Index rising 0.7% and Nifty Midcap 100 trading 0.45% higher
Tech view
Nifty’s all-time is just 1.5% away near 26,300. On Monday, the index has managed to hold firm above 25,950, reinforcing its bullish structure with the next resistance zone seen at 26,000–26,300.
“As long as the Nifty sustains above 25,750, momentum is expected to remain firmly positive. Immediate support is placed at 25,600, followed by 25,500,” said Ponmudi R, CEO of Enrich Money.
Global markets
Asian shares rose on Tuesday as the prospect of easing trade tensions between the US and China boosted risk sentiment, while Sanae Takaichi was set be elected Japan’s next prime minister, lifting the Nikkei and weighing on the yen.US President Donald Trump said he expects to reach a fair trade deal with Chinese President Xi Jinping and downplayed risks of a clash over the issue of Taiwan.
MSCI’s broadest index of Asia-Pacific shares outside Japan hit an over four-and-half-year high and was last up 0.94%. China stocks rose 0.2% while Hong Kong’s Hang Seng was 1% higher in early trading.
Meanwhile, US stocks ended higher last night as a broad, tech-led rally pushed all three major stock indices upwards, putting the Nasdaq out front.
Samvat 2082 Outlook
Analysts believe Samvat 2082 will be a year of eGrowth — or earnings growth — with sectors like automobiles, PSU banks, and NBFCs leading the recovery. Prashant Tapse of Mehta Equities points to the government’s Rs 12 lakh crore tax-free budgetary push and GST 2.O reforms as strong tailwinds for consumption and corporate profitability.
“Valuations are reasonable, earnings downgrades have largely bottomed out, and domestic inflows continue to show remarkable strength even as foreign investors remain cautious. This creates a favourable setup for Indian equities to outperform in the new Samvat,” said Amisha Vora, Chairperson and MD of PL Capital.
Top brokerage picks for Samvat 2082
Experts have unleashed a deluge of stock picks for the upcoming Samvat year. For instance, LKP Securities sees Bajaj Finance, Divi’s Labs, Nykaa, SBI Cards, SBI to do well.
Kotak Securities is favouring Adani Ports, Acutaas Chemical, Cummins, Eternal, ICICI Bank, M&M, and RIL. JM Financial, on the other hand, is recommending Maruti Suzuki, Fiem Industries, Axis Bank, IIFL Finance,
L&T Finance, Apollo Hospitals and Lloyds Metals.