600 points on the Sensex, Nifty up 1%: Positive signals, lower inflation, and all of this support the rise

 600 points on the Sensex, Nifty up 1%: Positive signals, lower inflation, and all of this support the rise

Global markets gained as a result of a lower-than-expected US inflation report for October, which raised chances the Fed would intensify its rate rise campaign.

Gains in the market were extensive as well since the surge included all industries.

On November 15, domestic benchmark indexes began trading higher. The morning session saw increases on Dalal Street, with the BSE Sensex and NSE Nifty 50 both rising more than 1%. The robust advances in the Indian market are indicative of the optimistic outlook shared by its global counterparts in Asia and the US.

Gains were also aided by some purchasing from lower levels, because the benchmarks had been under selling pressure due to conflicting global signals during the previous session. It is anticipated by analysts that the benchmark would continue to increase, although slowly.

Sensex was up 566.13 points, or 0.87 percent, at 65,500.00 at 11:39 am, while Nifty was up 178.30 points, or 0.92 percent, at 19,621.80.

What gives rise to optimism?

Soft US inflation print: The US retail inflation data for October was lower than anticipated, which stoked expectations that the Federal Reserve may now decide to postpone increasing interest rates. This news has been the main driver of the upward trend in world markets. A portion of the market was also optimistic that the Fed would go through with its intention to lower interest rates starting in mid-2024.

US retail inflation increased by 3.2 percent in October, above the forecast increase of 3.3 percent, despite low gasoline prices. At the same time, underlying inflation seemed to be decreasing.

The US inflation report that was mild in October is a game-changer for the stock market. These figures demonstrate the Fed's readiness to hike rates and suggest that a rate reduction deadline may be extended until 2024. rapid improvement in the US According to VK Vijayakumar, chief investment strategist at Geojit Financial Services, "markets in India will also be impacted."

"FIIs are probably going to start purchasing, so as not to miss the global big economy's best-performing rise. He predicted that big financial firms, which were impacted by FII selling, will recover.

Positive global signals: On November 14, the S&P 500 and Nasdaq had their best day since April thanks to the surprise inflation report that was lower than anticipated.

In addition, mood was further enhanced by the dollar index cooling and the benchmark 10-year US Treasury bond's yield declining.

Benchmarks from Japan, South Korea, Taiwan, Indonesia, Thailand, and Hong Kong all saw gains of 1% to 2% during today's session, after strong overnight indications from Wall Street.

Five-month low for domestic inflation: In October, India's core retail inflation rate dropped to 4.87 percent as a result of a positive base effect and a decrease in the cost of some commodities. The total rate of inflation has dropped below 5 percent for the first time since June.

Furthermore, for the second consecutive month, retail inflation was within the 2–6% percent tolerance range set by the Reserve Bank of India.

Wide-ranging Gains: Since every industry took part in the surge, the market's gains were also widespread. Gainers outweighed laggards on the market, and all sectoral indexes were trading in the green. The fact that two stocks increased in spite of the decrease indicates the strength of the market. A little over 2,073 shares increased, 1,065 shares decreased, and 113 shares stayed the same.

Strong overnight advances in the technology-heavy Nasdaq Composite also bolstered sentiment in domestic information technology firms. The Nifty IT index increased by more than 2% as a consequence of jumps of 1-4% each in Tech Mahindra, Infosys, and Tata Consultancy Services.

The dollar index's decline is also encouraging for metal equities, as Hindalco Industries saw a gain of more than 4%. With the help of more metal counters including Tata Steel, JSW Steel, and Hindustan Zinc, the Nifty Metal index as a whole gained almost 1.5%.

Important Levels to Watch: Prashant Tapse, Senior VP (Research), Mehta Equities, feels that the technical view also hints for a substantial rebound, in line with the upswing of the Nifty 50 in today's session. He highlighted the uptrend around 19,707 and then 19,857. It was anticipated that it would approach the level. Index of titles.

The market should be range-bound for the time being, according to MK Investment Managers Chief Investment Officer Manish Sonthalia, despite the session's notable advances.

Deven Mehta, Research Analyst at Choice Broking, concurs, pointing out that Nifty faces immediate resistance above 19,650 and subsequently 19,700, which would lead to selling pressure on the index's upside.

Since the market is still trending upward overall, Mehta advises investors to hold onto their long holdings with a trailing stop loss. Additionally, analysts encourage investors to take advantage of each market downturn as a chance to place long-term fresh wagers.

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