The Indian stock market witnessed strong intraday buying, with benchmarks the Sensex and the Nifty 50 jumping 1% each in morning trade on Tuesday, 13 October. The Sensex rose 700 points, or 1%, to an intraday high of 72,621, while the NSE counterpart Nifty 50 jumped 1% to the day’s high of 22,581 during the session. The mid and small-cap segments were mixed. The Nifty Midcap 150 index rose by 0.50%, while the Smallcap 250 index dropped by 1%.
Why is the stock market up today?
Let’s take a look at three key factors behind the rise in the domestic market benchmarks:
1. IT, bank heavyweights shine
Healthy gains in IT and banking heavyweights lifted the Sensex and the Nifty, as these two sectors cumulatively account for the largest weight in the benchmarks. Around 10:15 am, HDFC Bank, TCS, Infosys, HCL Tech, ICICI Bank, Tech Mahindra, and SBI were among the top contributors to the gains in the Nifty index.
The Nifty IT index jumped 3.5% after healthy Q2 earnings of HCL Tech. Strong dollar and selloff in AI stocks also boosted IT stocks. Bank Nifty gained nearly 1%, boosting the benchmarks.
2. Rupee rises further
The Indian rupee rose further by 62 paise to 95.16 against the US dollar in early trade on Tuesday after the Reserve Bank of India (RBI) announced additional measures to alleviate pressure on the currency.
“The restrictions imposed by the RBI by limiting trading in forex derivatives and raising the cost of trading have brought some relief to the rupee, which appreciated by 0.99% to 95.77 to the dollar at market close yesterday,” said V K Vijayakumar, Chief Investment Strategist, Geojit Investments.
As per a PTI report, the RBI unveiled a series of measures to curb dollar demand. The central bank reinforced that with direct market intervention, selling dollars to support the currency, according to traders.
3. oil prices ease
Crude oil prices declined by more than 1% on Tuesday amid the prospects of additional diesel supplies from Russia.
Crude oil benchmark Brent Crude futures traded more than 1% lower near $105 per barrel on Tuesday morning.
As widely reported, US President Donald Trump said Russia had agreed to supply diesel to global markets. The Trump administration has temporarily lifted US sanctions on Russian fuel.
Technical outlook for Nifty 50
According to Hemang Gor, Senior Research Analyst- Derivatives and Technical Research, Axis Direct, Nifty’s RSI at 34 is nearing oversold territory, indicating fading selling pressure.
Gor, however, added that a decisive reversal is unlikely as long as the index stays below 22,500–22,600. Immediate support stands at 22,300; a breach could expose the 52-week low near 22,180, he said.
Shrikant Chouhan, the head of equity research at Kotak Neo, said 22,300 is a crucial support level and a breach of it could accelerate selling pressure, potentially dragging the Nifty towards 22,200–22,150. A closing below 22,150 on the Nifty would further weaken the market outlook.
On the upside, 22,500 remains an immediate resistance level. A sustained move above this could trigger a recovery towards 22,640, said Chouhan.
“The market remains volatile and lacks a clear directional trend. Therefore, traders should focus on key technical levels and adopt a disciplined, level-based trading strategy,” Chouhan said.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
