The domestic equity market on Wednesday ended the day with impressive returns, with the BSE Sensex jumping 742 points to close at 65,675.93, while the NSE Nifty rising by 231.9 points to cross the 19,750 level to close at 19,675.45. The Indian markets showed the spectacular view amid positive global cues and on easing of domestic inflation.
Among the 30 shares of the Sensex, 27 ended the day in the green. Among the top gainers were Tech Mahindra (3.77 per cent), Tata Motors (2.84 per cent), Infosys (2.69 per cent) and Wipro (2.54 per cent). On the other hand, three companies ended the day in the red — Bajaj Finance (down 1.84 per cent), IndusInd Bank (lower by 1.05 per cent), and PowerGrid (drops 0.97 per cent).
In the broader market, both BSE Midcap and BSE Smallcap indiced jumped 0.91 per cent and 1.13 per cent, respectively.
Vinod Nair, head of research at Geojit Financial Services, said, “The market’s strong gap-up jump in response to positive global cues on account of the softer-than-anticipated US and UK’s inflation data highlights the optimism for an end to the interest rate cycle, as evidenced by the ease in bond yields. This is likely to draw FII flows into emerging markets, which is good for India considering the current better earnings season and the festive demand pick-up.”
He added that the drop in the CPI for India also improved the mood. The rebound was broad-based with IT, realty, oil & gas, metal, and auto leading the way.
Technical Analysis
Rupak De, senior technical analyst at LKP Securities, said, “The Nifty has witnessed a robust upward movement, propelled by a strong global equity market sentiment, particularly following a gap-up opening. On the daily chart, the index has shown significant upward momentum after a consolidation phase, indicating an increase in optimism.”
He added that the overall trend appears positive, with the index consistently maintaining levels above the critical moving average. Looking ahead, bullish sentiment is likely to persist as long as the index remains above 19,500. On the upper side, resistance is anticipated in the range of 19,700 to 19,850.
Ajit Mishra, senior vice-president (technical research) of Religare Broking, said, “The Nifty has decisively crossed the trend line hurdle and looks set to test 19,850 now. Interestingly, noticeable contributions from heavyweights like Reliance, Infosys and TCS, which were on the sidelines, largely fuelled the up move. And, we expect their participation to continue thus reiterating our view to maintain a ‘buy on dips’ approach and focus on stock selection.”
He said markets made a firm start and gained over a per cent, tracking upbeat global cues. After the gap-up start, Nifty remained in a narrow range in the first half however buying in select heavyweights pushed the index higher as the session progressed.
Comments
0 comment