Mumbai, Nov 3 The Indian market is resurging amid a drop in investors' anxiety as Nifty VIX contracts generously, Vinod Nair, Head of Research at Geojit Financial Services, said on Friday.
The optimism is buoyed by firm global clues, steady macro-economic data and strong domestic corporate earnings. Clues that the US Fed is unlikely to hike rates in the future and modest decline in oil prices are adding to the optimism, Nair said.
On Friday, Nifty 50 closed at 19,230.60, up 97 points, or 0.51 per cent, while the Sensex closed at 64,363.78, up 283 points, or 0.44 per cent.
The ongoing Q2 results are exploring healthy expansion in Indian operating margin, leading to a strong bounce in earnings growth.
In the midst of the earnings season, large-cap companies indicate a solid 40 per cent growth in PAT on a YoY basis. Also, moderation in global inflation and steady domestic and external demand is lifting the H2 corporate earnings outlook, Nair said.
Most sectors closed in green on Friday.
Notably, the Nifty reality outperformed on Friday, closing positive at 2.54 per cent, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.
Meanwhile, the Bank of England maintained the benchmark rate as anticipated, but it predicts no growth and rising unemployment in the upcoming year, he said.
Apollo Hospitals, Adani Ports, Eicher Motors, LTIMindtree and Titan Company were among the major gainers on the Nifty, while the losers included Bajaj Finserv, Dr Reddy's Laboratories, SBI Life Insurance, IndusInd Bank and Tata Steel.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said that after a gap up opening, Nifty faced resistance around 19,250-19,300 levelsand one can see maximum put writing at 19,200 levels which may act as strong support for Nifty, while one can see maximum open interest in 19,300 call option. So, one should only be bullish on Nifty if it closes above its crucial 100 days' moving average placed at 19,300.
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