Domestic equity market benchmarks ended over 2 per cent higher on Wednesday after the National Stock Exchange (NSE) resumed trading following a nearly four-hour long halt due to a technical glitch
The rally was primarily boosted by buying in private banks. Image: Reuters
Domestic equity market benchmarks ended over 2 per cent higher on Wednesday after the National Stock Exchange (NSE) resumed trading following a nearly four-hour long halt due to a technical glitch. BSE Sensex zoomed 1,030 points or 2.07 per cent to 50,782, while the broader Nifty 50 index surged 280 points to settle at 14,988. During intraday, Nifty reclaimed the psychological level of 15,000 mark in post resumption trade. The rally was primarily boosted by buying in private banks after Finance Minister Nirmala Sitharaman announced that the Centre has lifted the embargo on the grant of government businesses to private banks. FM further added that all banks can now be equal partners in the development of the Indian economy. Following this development, Both Nifty Bank and Nifty Private Bank indices surged nearly 4 per cent.
Nifty has shown smart recovery after six days of the corrective move, Nifty took support from 14650 and managed to cross above 14850 resistance area and formed a strong bullish candle on daily chart, Nifty chart pattern suggests that now if Nifty sustains above 14850 it may continue upward momentum towards 15100-15250, however, any break below 14850 would witness again profit booking towards 14700-14600 level. We expect the banking, metal and capital goods sector to do well in the near term.
The technical glitch did not impact domestic market sentiment though volatility was high with a positive prejudice, in the first session. During the extra session, the market gathered more strength and hugely outperforming the global peers, triggered by squaring-off F&O positions a day ahead of the prefixed monthly expiry date. The global market was mixed, not very convinced that world central banks like FED will maintain a flexible monetary policy even during rising bond yield & inflation. And the Asian market was negatively impacted by a hike in stamp duty on equities”
A late surge by bulls across Financials post lifting of the embargo on the grant of GOI business to private banks took indices up 2% today when trade time was extended till 5.00 pm.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Nifty50 is currently in the consolidative phase; we expect the same to continue for the next few weeks. The broader range is seen at 14500-15200. From the medium-term perspective, the undertone remains extremely positive and we expect the index to test 16000 odd levels. Banking, Metals and Realty remain preferred picks and can be accumulated on corrections.