The Indian equity indices bounced back and closed on a positive note cutting its intraday losses. The Nifty 50 advanced 203.30 points or 0.92% to finally settle the day’s trading at 22,403.85. Sensex jumped 677 points or 0.93% to close the day’s trading at 73,663.72. HDFC Bank, Infosys, Bharti Airtel, M&M, and Reliance Industries were the major contributors in pushing the Nifty 50 higher, while M&M, Tata Consumer Products, Bharti Airtel, Tech Mahindra, and LTIMindtree were the significant gainers. The volatility index was down 1.38%.
Also, the foreign institutional investors became net sellers of Rs 2,342.65 crore in the Indian equity markets, according to NSDL data.
Sectoral indices higher
The Nifty Midcap 100 outperformed the benchmark indices throughout the session and later closed 445.55 points or 0.88% higher to finish the session at 51,153.30. However, Nifty Bank closed 290 points or 0.61% at 47,977.05.
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On the sectoral front, consumer durables, IT, and realty stocks kicked the indices higher. In the broader market, smallcap and midcap stocks closed in the green.
“Widespread buying in the closing hour session saw key indices notch up significant gains in another volatile trading session. At a time when FIIs have been ploughing out funds from domestic equities, news of new stocks being added to the MSCI index which is expected to bring in fresh FPI flows has brought some cheers to the markets. On the election front, there are talks that the ruling BJP government will attain majority and form the government, which would mean continuity in policy reforms going ahead,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
Nifty’s Technical Side
“On intraday charts, it has formed a strong reversal formation and it also succeeds to close above 50 and the 20-day SMA (Simple Moving Average) which is largely positive. We are of the view that the 50-day SMA or 22310/73500 would act as a sacrosanct support zone for the bulls. As long as the index is trading above the same, the bullish momentum is likely to continue. On the higher side, immediate resistance for the index could be 22500-22600/74000-74200. On the flip side, below the 50-day SMA, or 22310/73500 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Bank Nifty
“The Bank Nifty has also resumed its next leg of up-move which can take the bank Nifty towards 48320 – 48700 from a short-term perspective. Hourly momentum indicator has a positive crossover which is a buy signal. The trailing stop-loss for the long positions should be kept at 47500,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
Affect on Rupee
The rupee continued rangebound trading between 83.45 to 83.50. “Positive sentiment in the capital market, fueled by last-hour buying and anticipation of positive outcomes from the general elections, provided support to the rupee. The stability of the rupee is expected to persist due to the absence of speculative positions in the market. Looking ahead, the rupee is likely to remain within the range of 83.40 to 83.65 in the upcoming sessions,” said Jateen Trivedi, Vice President and Research Analyst of Commodity and Currency at LKP Securities.
