Nifty50 remains in consolidation mode; GNFC, MCX India shine

The Indian stock market witnessed a lackluster session on October 16, as the Nifty50 index traded in a narrow range of 19,600-19,850. The index closed marginally lower at 19,732, while the Sensex fell by 116 points to 66,167. The broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices gaining 0.2 percent and 0.4 percent respectively.

GNFC breaks out of downtrend; surges 5.4 percent

One of the top performers of the day was Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), which rallied 5.4 percent to Rs 669 on the NSE. The stock formed a robust bullish candlestick pattern with minor upper and lower shadows on the daily charts, with strong volumes. The stock has seen a breakout of downward sloping resistance trendline adjoining highs of May 18 and September 14. This indicates a reversal of the bearish trend and a possibility of further upside in the coming sessions.

MCX India hits record high; gains over 4 percent

Another stock that outshone the broader markets was Multi Commodity Exchange of India (MCX India), which ended at a record closing high of Rs 2,197, up more than 4 percent. The stock formed a long bullish candlestick pattern on the daily scale with above average volumes. It traded well above all key moving averages (20, 50, 100 and 200-day EMA). On the monthly charts, the stock has seen a horizontal resistance trendline breakout adjoining highs of October 2021 and September 2023, which is a positive sign. The stock is likely to witness more buying interest as it enters uncharted territory.

Deepak Fertilisers and Petrochemicals Corporation jumps 3.7 percent

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) was another stock that caught the attention of the investors, as it surged 3.7 percent to Rs 474 on the NSE. The stock has been in an uptrend since August and has gained over 50 percent in the last two months. The stock has also broken out of a symmetrical triangle pattern on the weekly charts, which suggests a continuation of the bullish momentum. The stock has also crossed its previous resistance level of Rs 460, which may now act as a support.

Market outlook: Range-bound trade likely to continue

The market remained in a consolidative mode for yet another session with support at the 20-day EMA of 19,690 and the hurdle at 19,800 on the higher side. Hence, considering the trend of last four days, the Nifty50 is expected to remain in the range of 19,600-19,850 for a few more sessions and the decisive breakout on either side of the range can give some confirmation, experts said.

The market breadth was positive, as 1,726 stocks advanced and 1,237 stocks declined on the NSE. The volatility index (VIX) eased by 1.6 percent to 15.8 levels. The sectoral indices were mixed, with Nifty Metal, Pharma and IT gaining over 1 percent each, while Nifty Bank, Auto and FMCG losing over 0.5 percent each.