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Overview
In a dynamic turn of events, the stock market’s pulse quickened as the Sensex and Nifty indices rebounded on Friday, thanks to significant gains from market behemoths such as Reliance Industries, ITC, and Bharti Airtel.
Rallying from a steep plunge from the day before, the 30-share BSE Sensex elevated by 260.30 points, marking a 0.36% increase, to close at 72,664.47. The day wasn’t shy of excitement as it saw a high rally of 542.37 points or 0.74%, peaking at 72,946.54.
The broader NSE Nifty was not to be outdone, as it ascended by 97.70 points or 0.44%, establishing a final stance at 22,055.20. This upward trajectory seemed particularly propelled by heavyweights like Power Grid, NTPC, JSW Steel, Asian Paints, ITC, Bharti Airtel, Hindustan Unilever, and Tata Motors, distinguishing them among the top gainers list.
However, this surge saw some resistance from the likes of Tata Consultancy Services, Kotak Mahindra Bank, Infosys, Wipro, Mahindra & Mahindra, and HDFC Bank, which lagged behind for the day.
Neeraj Sharma, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates, illuminated the day’s trading dynamics, noting the bullish opening of the indices buoyed by favorable global cues. Yet, the Nifty maintained a constrained range throughout the session. He hinted at underlying weakness in the weekly charts but suggested the possibility of a pullback if the indices managed to maintain their foothold.
Sharma outlined potential technical movements where the indices could face resistance or find support, noting critical levels to watch. The downside could see support around the 21,780-21,820 levels, aligning with the 100-Days Exponential Moving Average (DEMA), whereas the upside might encounter resistance near the 21-Days Exponential Moving Average (21-DEMA) at 22,335.
Globally, Asian markets in Seoul, Tokyo, Shanghai, and Hong Kong showcased commendable gains, a sentiment echoed by European markets which also basked in green. The positive conclusion of Wall Street’s preceding session further complemented the upbeat mood.
Meanwhile, the Brent crude oil benchmark slightly increased by 0.41% to USD 84.22 per barrel. Despite this positive trend, Foreign Institutional Investors (FIIs) dialed back, selling off equities worth Rs 6,994.86 crore on Thursday.
This market recovery narrative was set against the backdrop of Thursday’s losing streak, with the BSE benchmark tumbling down 1,062.22 points or 1.45% to 72,404.17, and the NSE Nifty diving 345 points or 1.55% to 21,957.50.
Key Takeaways for Investors:
- The resilience of the Indian equity market has been highlighted, with heavyweight firms like Reliance and ITC playing a pivotal role in the market’s recovery.
- Despite mixed global cues and FIIs’ recent sell-off, domestic markets showcased a strong comeback, suggesting underlying strength.
- Investors are advised to keep an eye on key support and resistance levels as indicated by market analysts, indicating potential turnarounds or further consolidations in the coming sessions.
- Keeping abreast of global market trends remains crucial as international sentiments continue to influence domestic market movements, especially in light of fluctuating oil prices and foreign investors’ activities.
This market rebound underscores the dynamic nature of the stock market, driven by both domestic heavyweights and global economic currents, presenting both challenges and opportunities for investors.
