Indian shares recovered from session lows to end higher, helped by a 6% rally in Reliance Industries. The blue-chip NSE Nifty 50 index ended 0.7% higher at 17,536.25, while the benchmark S&P BSE Sensex rose 453 points to 58,795.09. Analysts said the oil-to-telecom conglomerate’s plan to move its gasification assets into one unit, its recent thrust on clean energy businesses and a possible telecom tariff rate hike are helping investor sentiment.
“It was Reliance’s day on the Indian equity market as Reliance alone contributed over 85% to Nifty, while healthcare stocks were also in good health today. Santosh Meena, Head of Research, Swastik Investmart Ltd said, “It was a volatile trading session especially behind the closing of F&O for Bank Nifty, which underperformed today.
“Technically, Nifty is trying to respect its 20-Week Exponential Moving Average after a decent correction, but the overall texture is still weak after a breakout of a bearish head and shoulders formation on the daily chart , where it is facing resistance at the previous swing low. If manages then bearish view will be ruled out otherwise there is a good chance that it could see further selloff where 100-DMA of 17100 will be important support; below this 16700 will be next important support level.”
Barring financial stocks, most sectoral indices ended the session higher. IT stocks Coforge Ltd and MindTree Ltd rose 2.33% and 1.56% each.
Rating agency Moody’s said India’s progress on coronavirus vaccination will support “continuous improvement in economic activity”, and had forecast GDP growth of 9.3% and 7.9% in fiscal years 2022 and 2023, respectively.
Globally, tech stocks rose in Asia – following overnight advances by US tech companies – and Asian stocks edged higher on Thursday.
“The market lacks decisiveness at current levels and this may continue for some time. In case of any rebound, Nifty will face resistance at 17,600-17,800 levels while the 17,350-17,150 zone will act as a cushion. Meanwhile, participants should continue with the stock-specific approach and maintain positions on both the sides,” said Ajit Mishra, VP – Research, Religare Broking.
Technically, today’s bounce could be a relief factor for the bulls to make a comeback. Says Nagraj Shetty, Technical Research Analyst, HDFC Securities. “The next two important resistances will be seen in the near term around 17600 and 17800. Also any downside is expected to buy lower levels.”
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