Sensex, Nifty rise on auto sales boost; midcaps hit record highs

The stock market rose on Monday, led by gains in auto and technology shares, as strong domestic flows supported sentiment in the absence of US cues with Wall Street shut for a holiday.The NSE Nifty 50 index climbed 198 points, or 0.81%, to close at 24,625, while the S&P BSE Sensex advanced 555 points, or 0.70%, to end at 80,364. The broader market outperformed, with the Nifty Midcap index surging 1,098 points, or nearly 2%, to a record 56,826, turning market breadth firmly in favour of advances."The index has witnessed a significant recovery from negativity as the Nifty reversed momentum following an inverted hammer pattern. On the hourly RSI, a hidden positive divergence is visible. However, sentiment remains “sell on rise” as long as the index stays below 24,850. Only a decisive move beyond 24,850 might induce a rally towards 25,250/25,500. On the lower end, support is placed at 24,500," Rupak De, Senior Technical Analyst at LKP Securities said. Forty-two of the 50 Nifty constituents closed higher. Autos led the gains after August sales surpassed expectations, with Bajaj Auto, Hero MotoCorp, Tata Motors, and Eicher Motors among the top five performers on the benchmark index. The Nifty Auto index rallied 3%.Technology stocks also advanced after a positive brokerage note lifted sentiment, with Mphasis rising the most among large-cap IT counters. The Nifty IT index closed nearly 2% higher.Ola Electric and Ather Energy extended their recent gains after August registration data showed sequential improvement in demand for electric two-wheelers.Capital market-related stocks also attracted strong buying, rising between 3% and 5%, while gold loan financiers such as Manappuram Finance surged in line with a rebound in global bullion prices.Electronics manufacturing services companies, including Dixon Technologies, Amber Enterprises and Kaynes Technology, gained up to 5%, adding to the broader rally in mid- and small-cap shares.The Nifty Bank index rose 347 points to 54,002, aided by steady flows into financials.