Major factors behind today's stock market rally
Published On: Monday, October 19, 2020 | By: Team KnowMyStock
Today( 19th Oct 2020) almost all Sensex stocks opened higher on as investors went all out to buy amid renewed hopes of an early economic stimulus package from the US and a vaccine by year-end. In the last 12 sessions, bluechip indices have closed in the red for just one session, which outlines the one-way rally the the market has seen. HDFC twins were the biggest positive contributors during the first hours of the day. PSU stocks also saw some buying and were among the top gainers. "Nifty has good support at 11,650 and until we do not break that, we are in positive territory. The resistance on the the upside is at 12,050. If we are unable to move past either level convincingly, we would be range-bound and trading in this zone should be avoided. Stocks that look interesting for an up move include Axis Bank, HDFC Bank, and Tata Steel," experts opinied.Some of the key factors for the rally are
1. US aid hopes rekindle: House Speaker Nancy Pelosi said on Sunday that differences remained with President Donald Trump's administration on a wide-ranging coronavirus relief package but that she was optimistic legislation could be pushed through before the Nov. 3 presidential election.
2. Vaccine by year end: Boosting overall sentiment, drugmaker Pfizer Inc said on Friday it could have a coronavirus vaccine ready in the United States by the end of this year. Meanwhile, global coronavirus cases rose by more than 4 lakh for the first time late on Friday, a record one-day increase as much of Europe enacts new restrictions to curb the outbreak.
3. Q2 earnings: Investors reacted to HDFC Bank’s earnings as the lender beat estimates. It was the first major bank to announce earnings after the moratorium ended and set the tone for other banking stocks.
4. China macro data beat forecast: The monthly indicators from beat forecasts - industrial output accelerated 6.9 per cent in September from a year earlier, when analysts were looking for a 5.8 per cent gain from a 5.6 per cent rise in August.
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