The equity market's day to day volatility continued with benchmark indices gaining almost 1 per cent on institutional buying after a big decline in the previous session and ahead of the Independence day holiday.
US-China trade tussle saw some positive developments with US President Trump putting off tariff imposition plans on select consumer products to December.
Lower domestic retail and whole sale price inflation also boosted sentiments in the market, analysts said Sensex opened 275.34 points higher in early morning trade on positive global cues and domestic data and rose over 500 points intra-day to a high of 37,473.61.
At market close Sensex gained 0.96 per cent or 353.37 points to close at 37311.53. The broader Nifty-50 Index closed 0.95 per cent or 103.55 points up at 11029.40.
The broader market too saw some gains with the BSE Mid-Cap Index up 0.85 per cent and BSE Small-Cap Index up 0.41 per cent.
Technical View
Nagaraj Shetti, Technical Research analyst, HDFC Securities said, "The Nifty showed a decent upside bounce today, after the sharp weakness of Tuesday and closed the day higher. The Nifty showed a decent upside bounce on Wednesday, any up move from here could encounter resistance at 11125 levels."
Rohit Singre, Senior Technical Analyst, LKP Securities said, "Index opened with good gains and managed to hold for the whole day, as Nifty-50 closed the a day at 11029. Now if Index managed to hold above 11080 zone then we may move towards 11140-11200 zone in near term and support for Index is coming near 10930-10850 zone.
Market View
Sahaj Agrawal, Head of Derivatives, Kotak Securities said, "The Nifty continues to consolidate in the range of 10800-11200; further consolidation is expected for the remaining of the August series. Metal stocks have shown some early signs of reversal - further momentum will confirm reversal of the same. IT stocks continue to trade with a positive bias while auto stocks remain under pressure."
Vinod Nair, Head of Research, Geojit Financial Services said," Moderation in inflation and positive development between US-China on trade-war boosted the market sentiment. The market is expecting another rate cut and supportive actions by the Government."
