The Nifty hit a two-month high on Tuesday, November 3, closing at 23,810.85 points. The rally got support from optimism around a potential review of capital gains tax. Siddhartha Khemka said, “The rally was supported by easing crude prices, continued foreign fund inflows and optimism around a potential review of LTCG.”
The rally was also supported by optimism around a potential review of the long-term capital gains tax (LTCG) for foreign investors, after Union Finance Minister Nirmala Sitharaman, speaking at the FE leadership award, acknowledged growing anxiety among retail investors and equity market participants.
On Tuesday, the benchmark indices extended sharp gains for a second straight session, with the Sensex closing 1,225.07 points higher, or 1.6%, at 76,917.85 points. The Nifty ended 370.05 points higher, or 1.6%, at 23,810.85 points.
Sensex, Nifty: Key levels to watch
The key support levels for Nifty are now 23,650 and 23,600 and 76,500 and 76,300 for Sensex, according to Shrikant Chouhan, Head Equity Research at Kotak Neo. As long as the market trades above these levels, the bullish sentiment is likely to continue.
On the upside, Nifty could rally towards 23,950-24,000 and Sensex may rise towards 77,500 to 77,800 points. “However, below 23,600/76300, the uptrend would become vulnerable, and traders may prefer to exit their trading long positions,” Chouhan said.
Top gainers, losers on November 3
Among the Nifty 50 constituents, BSE was the top gainer and ended the day 5% higher on Tuesday, November 3. Nestle India followed with 4.5% gains while Tata Consumer Products rose 4.3%. Asian Paints and Bharti Airtel ended around 4% higher. Power Grid Corporation was the worst hit, ending the day 3% lower. The State Bank of India closed 1.7% lower while ONGC ended the day 1.1% lower.
Among sectoral indices, the Capital Market index outperformed, soaring over 4.5% while the PSU Bank index declined the most, shedding 1.25%.
Over the last two trading days, shares of Reliance Industries have gained over 10% and the Shriram Finance share price has surged 7%.
“The Nifty 50 extended its gains for the fourth consecutive session, rising 1.6% to close at 23,810. The rally was supported by easing crude prices, continued foreign fund inflows and optimism around a potential review of LTCG taxation for foreign investors. Broader markets also advanced, with the Midcap 100 and Smallcap 100 gaining 1% and 0.2%, respectively,” Siddhartha Khemka, Head of Research , Wealth Management, at Motilal Oswal Financial Services said in a note.
“FMCG, Realty and Private Banks led sectoral gains, while PSU Banks and Metals were the major laggards,” he added.