Gains in oil & gas, IT and pharmaceuticals shares pushed the headline indices higher, though losses in financial and automobile stocks limited the upside.
Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas, said the Nifty has entered pullback mode from the lower end of a falling channel.
In terms of Fibonacci retracement, the pullback has so far retraced 38.2 percent of the previous decline from 18,210 to 17,216, and can head towards the 61.8 percent retracement, which is near 17,800.
“However, from a trading point of view, one can look at buying it.
If you look at the mix, 52 percent is domestic OEMs, 13 percent is aftermarket and about 35 percent is exports.
Maruti has no clarification as far as electric vehicles are concerned; neither it is into the space where four-wheelers are growing, which is the SUV segment.
“It has underperformed in the last couple of months and that is why you see aggressive buying in Reliance Industries, so some catch up is there.
The 30-scrip index ended 454.1 points or 0.8 percent higher at 58,795.1 and the broader Nifty50 benchmark settled at 17,536.3, up 121.2 points or 0.7 percent from its previous close.
“If the market is able to sustain 17,500, it can witness a positive momentum that can lead to the higher levels near 17,600-17,700,” he said.
Bitcoin, the world’s largest cryptocurrency, extended the recovery it had staged after crashing over 25 percent on Wednesday morning.
India’s crude oil import bill is set to surpass the last fiscal year’s $62.2 billion by the end of November itself.
From a sectoral allocation perspective, at the margin, we are getting a little bit cautious and that is resulting in a larger focus on getting into the large-caps and getting out of small-caps and mid-caps, looking to cut the risk in some other sectors.
I sense over a period of time over the next twelve months, we will start seeing encouraging signs on the growth front as well as far as credit growth is concerned.
There could be some short-term headwinds but clearly, that is one sector we believe could be worthwhile looking at from a 12-24 months perspective.
The Nifty Bank is on track to finish the November futures & options more than five percent lower, as most of its components suffered losses during the period.