Stock market today: Sensex, Nifty 50 stage smart rebound, jump nearly 1%; bank & metal stocks lead gainers

Indian stock market today: The Indian stock market experienced a notable recovery from its lows on Tuesday, November 05, with both benchmark indices closing the session with positive gains. This rebound came a day after the market recorded its worst intraday performance in a month. Notably, this recovery occurred just ahead of the US presidential election taking place today.

The recovery was primarily driven by gains in banking stocks, including HDFC Bank, ICICI Bank, Axis Bank, and State Bank of India, which collectively supported the market's upward movement.

Moreover, there was a significant rally in metal stocks, including Tata Steel and JSW Steel, following positive economic indicators from China that suggested improvements in the country's economy.

According to recent media reports, Premier Li Qiang expressed confidence that China would meet its GDP target for the year and achieve its future economic goals, supported by a series of fiscal and monetary stimulus measures implemented by Beijing.

The robust rally in the banking and metal sectors propelled the Nifty 50 to close the trading session up by 0.91% at 24,213. After hitting an intraday low of 23,842, the index rebounded by 372 points, reflecting a recovery of 1.55%.

Likewise, the S&P BSE Sensex climbed 1,180 points or 1.55% from its day's low of 78,296 to finish the session at 79,476, marking an increase of 0.88% compared to the previous day's close.

Mid and small-cap stocks also closed higher but lagged behind the benchmark indices. The Nifty Midcap 100 index recorded a gain of 0.59%, finishing at 56,115, while the Nifty Smallcap 100 index ended the session at 18,503, reflecting an increase of 0.43%.

Among the sectoral indices, the Nifty Metal index recorded a sharp gain of 2.84%, followed by the Nifty Private Bank, Nifty PSU Bank, and Nifty Auto indices, each ending with gains of over 1%. Conversely, the Nifty FMCG and Nifty Media indices experienced modest losses, declining by more than 0.30%.

In terms of individual stocks, 39 constituents of the Nifty 50 index closed the session in positive territory. JSW Steel topped the list with a gain of 4.7%, followed by Bajaj Auto, which rose by 3.7%. Other notable performers included Tata Steel, Hindalco Industries, Axis Bank, and HDFC Bank, all of which ended the session with gains exceeding 2%.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Financial Services said, " The domestic market experienced a sharp recovery, reclaiming most of the previous day’s losses amid uncertainty surrounding the likely downgrade in Q2 GDP forecast and closely contested U.S. presidential election.  However, the recent rebound in domestic manufacturing activity data, along with the expected revival of consumption in the H2, are likely to support market sentiment. Metals led the gains, driven by the anticipation of significant stimulus from China later this week."

Bullish reversal ahead?

Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty has found support around a historical swing low for the second consecutive day. On the technical front, a Piercing Line candlestick pattern has appeared on the daily chart, suggesting a potential bullish reversal. Additionally, a positive divergence on the daily RSI further strengthens the case for an upward move."

“Looking ahead, a buy-on-dips strategy could benefit traders as long as Nifty stays above 24,000. On the higher side, Nifty may advance toward the 24,750-24,800 range. However, the buy-on-dips strategy has to be reviewed once Nifty falls back below 24000,” he further added.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.