The Indian market extended its rally earlier this week with the Sensex breaching its 60,000 psychological mark and the Nifty 50 inches closer to 17,800. The fear of rate hike and uncertainties in Adani Group has abated, leading to a bullish comeback in domestic equities. On Monday, all sectoral indices witnessed broad-based buying led by gains in oil and gas, IT and auto stocks. Additionally, barring cement businesses, all other Adani stocks saw gains which further strengthened the market sentiment.
Sensex It closed at 60,224.46, up 415.49 points or 0.69%. The Nifty 50 closed at 17,711.45, up 117.10 points or 0.67%. During the trading session, the Sensex touched a high of 60,498.48 and the Nifty 50 saw a high of 17,799.95.
Tata Motors was the top gainer on the BSE with a gain of around 2.8%, followed by NTPC and Power Grid which were up 2.5% and 2.3% respectively. Shares such as Bajaj Finserv, Infosys, Asian Paints and HDFC also contributed to the rally ranging between 1-5%.
On the other hand, Tata Steel declined up to 1.22% followed by L&T, IndusInd Bank and Sun Pharma among the top losers.
Adani Group’s shares are up for the fourth consecutive day. Shares of flagship firm Adani Enterprises soared 5.5%, while Adani Ports advanced nearly 1%. Other Adani-designated stocks such as Adani Wilmar, Adani Power, Adani Total Gas, Adani Green Energy and Adani Transmission hit upper circuit of 5% each. In the media business, the share price of NDTV also increased by around 5%. However, in the cement business, Ambuja Cements declined by 1.7 per cent and ACC by 1.5 per cent.
In terms of sectoral indices, on the BSE, the IT index soared over 364 points, while Oil & Gas climbed nearly 329 points. The auto index gained 285 points. In the broader market, the Midcap and Smallcap indices also gained about one per cent each.
Last week, on Friday, Sensex and Nifty 50 gained over 1.5% each. While the benchmark ended the week with gains of around 1%.
As markets extend their rally, equity investor got rich by Total market capitalization of all stocks listed on BSE rises to Rs 5.5 lakh crore 265.5 lakh crore on Monday.
Shrikant Chauhan, head of equity research (retail), Kotak Securities, said, “Relief momentum continued for the second consecutive session led by sharp rally in energy stocks like power, oil and gas, helping the benchmark Sensex close above the psychological level of 60,000.” “
Going forward, Chouhan said, “Some volume trading has been observed after the recent sell-off, but the overall sentiment still remains cautious with a downside bias as larger concerns related to the macroeconomic crisis and geo-political tensions remain unresolved.” Also in a crucial position. Threat to the markets. Technically, 17800-17900 can be immediate profit booking zone for bulls, while 17650-17600 will be holy support zone for traders. However, trend below 17600 will weaken Will happen.”
While Rohan Shah, Principal Technical Analyst, Stoxbox said, “In a day, traders can look for long opportunities only above the resistance level of 17,800 and for long confirmation the price should remain above 17,800 for 15 minutes. Look for shorts only when Nifty breaks 17,640 level and stays below for 15 minutes to ensure short.”
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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