The market on Wednesday ended in the green after eight days of falling, with the Sensex surging 403.65 points or 1.14 per cent to settle at 35,756.26.
The Nifty 50 gained 131.10 points or 1.24 per cent to settle at 10,735.45. Both Mid-Cap and Small-Cap indices are rising. The major Index gainers were Reliance Industries (1.48 per cent), Infosys (2.05 per cent) and HDFC Bank (1.07 per cent), ONGC (3.63 per cent), NTPC (2.85 per cent), Yes Bank (2.57 per cent), Sun Pharmaceutical Industries (1.89 per cent) and Bharti Airtel (1.74 per cent) were the major Sensex gainers.
Among the sectoral indices, the S&P BSE basic materials (2.24 per cent), metal (up 2.99 per cent), oil & gas (2.19 per cent) outperformed the Sensex. The consumer discretionary goods & services (0.69 per cent), FMCG (0.23 per cent), healthcare (0.48 per cent) underperformed the Sensex.
Technical View
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking, said, “We had a gap up opening mainly on the back of strong global cues. During the penultimate hour, we saw emergence of strong buying interest, reclaiming 10700 convincingly by adding more than 130 points to the bulls’ kitty.
“Historically it is observed that whenever index corrects for eight straight sessions without surpassing previous day’s high, the ninth day becomes a reversal day or a bounce back day. This is what we saw and it’s good to see broader market participating in it quite heavily.
“We expect extension of this bounce back towards 10800-10840 levels. On the flipside, 10700 followed by 10650 are now likely to act as strong supports.
Mustafa Nadeem, CEO, Epic Research, said “The Nifty reverses as the confluence of inverted hammer, buying at support, positive cues from the global markets and 100 days SMA. It was all coming in at the levels of 10600 as the markets were experiencing a bearish shock with eight days of consecutive losses despite the global markets trading at new monthly highs and were above its crucial 200 days SMA.
“The derivative data which was painting a bearish scenario was seen cooling off in last two days with some long liquidation in PE at strikes of 10600-10700 while short build up is now seen at 10500 - 10400 PE. On the CE side, we have seen short covering at strikes of 10600 - 10700 as well indicating a range bound trading session that may continue to be between 10800 - 10600 in short term.
“Technically, we still don't see any directional play where markets can see some good move but we do observe the nature of markets to be range bound and that is the best scenario for short term traders.”
Market view
Jayant Manglik, President, Religare Broking, said, “Going forward, we expect the markets to take cues from the global developments in the absence of any key domestic triggers in the near term. The outcome of US-China trade talks, release of FOMC meeting minutes as well as progress on Brexit deal will give further direction to the markets.
