Banks Charge on Metal Roads for Stock Market Turnaround

Spread the love

Stock Market Today Weathers Extreme Volatility Ahead of US Election Outcome

By S Jha

New Delhi, November 5: The stock market on Tuesday witnessed a fierce battle between bulls and bears. Bears pushed bourses to abyss in the first half of the session. Bulls pulled the indices after firmly pushing away bears.

The dramatic turnaround in the fortunes of the bourses came after the big banks announced their big bang arrivals on the street. By the time the bulls convinced investors of clearing the street, the indices went soaring high.

Nifty in the first half sank to a fresh low. Bank Nifty too seemed sinking in a pit less hole. Sensex was once again mauled.

Also Read: Think Tanks Seek Global South Convergence for Power Shift

The first hour of the trade on Tuesday saw bull and bears locked in a fierce battle. But the bears prevailed and they sank Nifty to the level of 23857 around noon.

Bank Nifty went hurtling down. The banking index went to the day’s low of 50865. Both the indices almost touched the strong support zones.

The metal stocks were trending since the bell rang for day’s trading. A key meeting in China is slated for this week. There is intense speculation of a fresh dose of stimulus package in China.

Conventionally, metal stocks go trending to news of China unveiling stimulus packages. Also, the Chinese bid to pump prime the economy is banking on housing and construction sectors.

The likes of JSW Steel, Tata Steel, Hindalco, and other metal stocks led the bulls to enter the street. Once they drew confidence from metal stocks, the bulls spread strength to the heavyweight banking stocks.

Also Read: Jaishankar Talks Canada’s Extremism with Australia

IndusInd Bank was first to bolt. It charged from low after mauled by bears for poor set of numbers in the quarterly results. The State Bank of India had turned bullish on Monday. The bank management cheered the bulls by stating that it is making bets on green energy.

The likes of Axis Bank and HDFC Bank also joined the party. Both the scrips tend to trend in bullish sentiments. Once the banking stocks began shining, there was no looking back for the bulls.

Bank Nifty soon vaulted to the day’s high with gains of over 1000 points. Nifty also soared with gains of over 125 points. Nifty reclaimed 24000 level, which is a key pivot per chartists.

Market participants had been fearful that Nifty below could fall in the grip of bears for longer sessions. But once again Nifty quickly reclaimed the 24000 level. Chartists claim that Nifty has been bouncing from 23800-900 zone in recent days.

Join WhatsApp channel of The Raisina Hills