Indian benchmark indices on Thursday made a strong comeback from the day’s lows to end positive for the second day in a row. D-Street heavyweights (RIL), and led the turnaround. Sectorally auto, IT and banks contributed the most. While the BSE Sensex surged 1200.18 points or 1.5% to close at 82,530.74, the broader Nifty was shot-up by 395.20 points or 1.6% to end the day at 25,062.10.
Commenting on the day’s action, Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities said that Nifty surpassed the 25,000 mark giving its highest closing of the last seven months propelled by strong buying interest in metal, auto, IT, and realty stocks. “It is now decisively above the key psychological resistance of 25,000,” he said.
In his view, the short term trend of the Nifty remains positive as it is placed above its important short term moving averages. “Next resistance for the Nifty is seen at 25,207, derived from 76.4% retracement of the entire fall seen from 26,277 to 21,743. On the downside, 24,800 could offer immediate support,” Shah said.
Here’s breaking down of the actions:
STATE OF THE MARKETS
Tech View: The recent surge in the Nifty index has reinforced our positive outlook, Ajit Mishra, Senior Vice President, Research at Religare Broking said. “A decisive breakout above the 25,200 level could potentially take the index towards the 25,400+ zone. We continue to advocate a buy on dips strategy, with a strong emphasis on selective stock picking, especially in light of overbought conditions in certain segments,” Mishra said.
India VIX: India VIX, which is a measure of the fear in the markets, fell 1.93% to settle at 16.89 levels.
FII/DII action
Foreign institutional investors (FIIs) were net buyers of Indian equities as they bought shares worth Rs 5,392.94 crore on Thursday while the domestic institutional investors (DIIs) shares worth Rs 1,668.47 crore.
Stocks in Ban
Three stocks are under F&O trade ban viz. CDSL, Hindustan Copper and Manappuram Finance.