NEW DELHI: Monday brought back cheers to Dalal Street!It almost felt like an early Diwali as all key sectors, be it banks, pharma, IT and metal saw fireworks, so to say.Market cheered RBIs plan to buy Rs 40,000 crore worth of government bonds via open-market operations in November.It offered relief to investors who were nervous about liquidity crunch in the market after defaults at a major infrastructure financing company.Improved global cues, easing crude oil prices and hopes of better earnings provided further impetus to the market.
Sensex settled 718 points, or 2.15 per cent, higher at 34,067, while Nifty closed at 10,250 with a gain of 221 points, or 2.20 per cent.In the Sensex kitty, only seven stocks - IndusInd Bank, HDFC Bank, Kotak Mahindra Bank, Bharti Airtel, Hindustan Unilever, HDFC and NTPC - failed to gain from the rally.
BSE Midcap and Smallcap indices rose 2.80 per cent and 2.06 per cent, respectively, in sync with benchmark Sensex.
Let's walk you through the key highlights of the session:Investors made Rs 3 lakh cr in a dayMondays rally added over Rs 3.10 lakh crore to equity investor wealth as the collective market capitalisation of BSE listed firms shot up to Rs 1,36,42,360.50 from Rs 1,33,31,977.38.
Who moved my SensexICICI Bank contributed the most to the Sensex rally by surging 11 per cent to Rs 349.15.
The stock jumped after the private lender beat Street estimates in September quarter earnings, posting a 55.84 per cent year-on-year drop in standalone profit at Rs 908.88 crore.
Analysts in an ET Now poll had estimated the profit figure at Rs 815 crore.
Among others State Bank of India (up 8.04 per cent), Adani Ports (up 7.33 per cent), Larsen Toubro (up 5.25 per cent), Axis Bank (up 4.96 per cent) and Reliance Industries (up 4.14 per cent) clocked strong gains.
Earnings, fund raising plan boost Tata PowerTata Power reported an 85.11 per cent jump in consolidated profit for September quarter at Rs 393.36 crore.
The company had reported a Rs 212.5 crore profit for the corresponding quarter last year.
The stock closed with a strong gain of 12.40 per cent at Rs 77.50 on BSE.
Meanwhile, in a BSE filing, the company said its board has approved the plan to raise up to Rs 5,500 crore through issuance of non-convertible debentures (NCDs) on a private placement basis.
Vijaya Bank rose despite subdued Q2 earningsShares of Vijaya Bank jumped 7.02 per cent to Rs 43.45 despite having reported a 24.54 per cent drop in net profit at Rs 139.94 crore for the second quarter.
The bank had registered a net profit of Rs 185.46 crore for the corresponding quarter last year.
IndusInd Bank at 52-week lowThe stock plunged 4.78 per cent to Rs 1,376, its 52-week low on BSE and stock broke below the support at Rs 1,420, which is the 50 per cent Fibonacci retracement level of the uptrend from February 29, 2016 low.
This suggests the stock may fall up to the next support at Rs 1,274.15, which is the 61.8 per cent retracement level.Sectors that made merryAmong the sectoral indices on BSE, the healthcare index surged 4.21 per cent, leading its peers.
Realty, capital goods, bank, industrials and energy indices jumped over 3 per cent on BSE.
Spurt in open interestCESC, with a change of 146.66 per cent, witnessed the biggest spurt in open interest on NSE, followed by Ambuja Cements (62.33 per cent), Divi's Laboratories (57 per cent), Tata Power (40.77 per cent) and ICICI Bank (35.35 per cent).Call/put writingMaximum Put open interest was at 10,000 followed by 10,200 and 9,500 levels, while maximum Call OI was at 11,000 followed by 10,500.
There was Put writing at 10,200 followed by 10,000 levels, while minor Call writing was seen at 10,400 followed by 10,200 levels.230 stocks hit upper circuitsAs many as 234 stocks, including Tata Steel, Radico Khaitan, Edelweiss Financial Services, VIP Industries, Manpasand Beverages and Reliance Naval and Engineering, hit their upper circuits on BSE.
On the contrary, 206 stocks, such as Vakrangee, Nirav Commercials, Indokem and Mansi Finance (Chennai), hit lower circuits on BSE.82 stocks enter oversold zoneOverall, 82 stocks entered oversold zone on BSE during the session, as per the momentum oscillator Relative Strength Index, or RSI.
They included Kwality, Infibeam Avenues, Dilip Buildcon, Bombay Dyeing and Persistent Systems.
On the other hand, 24 stocks, including Prakash Steelage, Mishtann Foods, Vani Commercials, Advance Lifestyles and Grandeur Products, entered the overbought zone on BSE.MACD bullish on 181 stocksMomentum indicator moving average convergence divergence (MACD) showed State Bank of India, Tata Motors, Edelweiss Financial Services, Tata Steel, Lupin and Canara Bank among the 181 stocks with bullish crossovers on BSE.
HDFC Bank, Hathway Cable, NLC India, Eris Lifesciences and Roxy Exports stood among 63 stocks that showed bearish crossovers on BSE.Coal India, GAIL, Cipla over 200-DMACoal India, GAIL, Cipla, Axis Bank, Biocon, HCL Tech, Tech Mahindra and Sun Pharma appeared among stocks that traded above their respective 200-DMA today.
TeamLease Services, Gallantt Ispat and Delta Magnets featured among stocks that traded below their 200-DMA today.
Technical outlookNifty50 made a smart rebound to settle above 10,250 mark today, forming a long bullish candle on the daily chart.
The index needs to take out 10,290 level to instil confidence in the market.
There is a possibility that the index can form an Expanded Flat structure, in which case the pullback can stretch higher, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
Alternatively, Nifty can take form of a Wedge pattern.
In that case the market can continue to be volatile with overall downward bias.
From short-to-medium term perspective, the weight of evidence is still in favour of the bears with the possibility for Nifty to tumble back to 10,000-9,952, the expert said.
Global sentiment improvedAfter recent drubbings, global stocks improved on Monday as reports of positive earnings and Standard Poor's decision to leave Italy's sovereign rating unchanged boosted sentiment.
European shares opened in positive territory on Monday in a tentative rebound from a sell-off, Reuters reported.
UK's FTSE 100, Germany's DAX and French CAC 40 climbed up to 1 per cent.
Crude oil easedGlobal crude prices eased today, bogged down by the rise in the dollar and concerns of slowing demand owing to weak economic growth.
However, the prospects of a tight supply looms after US sanctions on Iran crude exports kicks in.
The market is expecting an increased supply from Saudi Arabia as it has promised to keep the oil market adequately supplied.
Benchmark Brent Crude and WTI Crude fell nearly half-a-percent.
Rupee closed almost flatThe domestic currency settled 2 paise higher at 73.44 for the day.
After opening 17 paise higher at 73.30 against the US dollar, the domestic unit turned flat as the greenback hovered near 10-week peak.