The benchmark Sensex recovered 2,995 points in the last two sessions as the stock market celebrated an impending third term for PM Narendra Modi-led NDA. Similarly, Nifty surged 937 points since Tuesday. Sensex, which closed at 72,079 on June 4 ended at 75,074 on Thursday. Nifty ended at 22,821 today against Tuesday’s close of 21,884.
Investors regained Rs 21.12 lakh crore as BSE market cap rose to Rs 415.95 lakh crore today against Rs 394.83 lakh crore two sessions ago.
Market sentiment was boosted by PM Modi’s statement on Tuesday night that NDA will form the government for the third successive time. The market recovery received another boost when INDIA alliance parties on Wednesday night announced they would not stake claim to form the government and sit in the Opposition.
Ajit Mishra – SVP, Research, Religare Broking said, “It appears that markets have adjusted to the recent election results, and stability on the global front is further boosting positivity. While a breather in the index might occur after the recent rebound, the overall tone is likely to remain positive. With all key sectors participating in the move, we suggest maintaining a ‘buy on dips’ approach, focusing on quality names during pullbacks.”
Rupak De, Senior Technical Analyst, LKP Securities expects Nifty to trade in a range of 22,600-23,000.
"The Nifty continued to rise after a bullish harami pattern formation yesterday on the daily timeframe. However, during the day, the index remained range-bound, oscillating between 22,650 and 22,900. The India VIX has slipped sharply below 17 in the last two days, signaling low volatility. In the near term, the index might continue to trade within the bands of 22,600-23,000,” said De.
Shrikant Chouhan, Head equity Research, Kotak Securities expects some profit-booking in the market. "On intraday charts, the market is still holding uptrend continuation formation, which is broadly positive. We are of the view that, the index has completed one leg of pullback rally and we could see some profit booking at higher levels. For the day traders now, 22650/74475 would act as a key support level. As long as the market is trading above the same, the positive sentiment is likely to continue. On the higher side, the index could find the resistance at 22900-23000/75290-75500. On the other side, below 22650/74475 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions," said Chauhan.
Current Session
Meanwhile, Sensex ended 692 pts higher at 75074 and Nifty gained 201 points to 22,821. Investor wealth surged by Rs 7.98 lakh crore to Rs 415.95 lakh crore on BSE.
Tech Mahindra, HCL Tech, SBI, Infosys, NTPC, TCS and L&T led the gains on Sensex, rising up to 4.07%. India VIX tumbled 11% to 16.90, signaling a fall in the market volatility in the current session.
As many as 131 stocks hit their 52-week highs today. On the other hand, 40 shares hit their 52-week lows on Thursday. Market breadth was positive in the current session.
Of 3,945 stocks, 3009 stocks ended in the green. Around 834 stocks ended in the red while 102 stocks remained unchanged.
All 19 BSE sectoral indices ended in the green today. Capital goods, oil & gas and IT shares led the gains on Dalal Street today. Capital goods, oil & gas and IT indices rose 2,243 points, 734 pts and 965 pts, respectively.
Around 398 stocks hit their higher circuits. On the other hand, 195 shares hit their lower circuit limits. BSE midcap index rose 969 pts to 43,555 and the small cap index gained 1416 pts to 47,693 level.
Bank Nifty too surged 237.30 pts to close at 49,291.
On Bank Nifty, Rupak De said, "Bank Nifty closed above 49,200, forming an indecisive candle, indicating market uncertainty. It found support near its 10-day moving average, suggesting a potential rebound. Sustaining above the 21-day moving average, it shows a bullish trend. Key levels to watch are 48,600 as crucial support and 49,800 as resistance, determining the market's direction ahead."