Nifty, Sensex Close Higher For Second Straight Day Led By Reliance: Market Wrap
The Nifty 50 closed 73.85 points, or 0.34%, higher at 21,618.70, while the Sensex gained 0.38%, or 271.50 points, to end at 71,657.71.
India's benchmark stock indices closed higher for the second straight day on Tuesday after a volatile session led by index heavyweight Reliance Industries hitting a record high.
The Nifty 50 closed 73.85 points, or 0.34%, higher at 21,618.70, while the Sensex gained 0.38%, or 271.50 points, to end at 71,657.71.
"The Nifty index bounced back strongly from its important support at 21,500, indicating that the bulls are quite active at this level. The Nifty closed at 21,623, near its resistance," said Kunal Shah, senior technical and derivative analyst at LKP Securities.
"If it manages to close above 21,700–21,750, we might see the Nifty reaching 22,000. For those looking to buy Nifty, the recommended range is between 21,550 and 21,600, with a stop loss at 21,480 for a target of 21,750," he said.
On Bank Nifty, Shah said that the index experienced a volatile trading session on the day of weekly expiry, but the bulls successfully defended the crucial support level of 47,000.
"Despite this, the overall market sentiment remains in "sell on rise" mode. The immediate hurdle for the index is at 47,500, where the highest open interest is concentrated on the call side. To initiate a short-covering move and potentially target the 48,000 mark, the index needs to convincingly surpass the level of 47,500 on a closing basis."
Shares of Reliance Industries Ltd. contributed the most to the Nifty 50, followed by those of ICICI Bank Ltd., HDFC Bank Ltd., HCL Technologies Ltd., and Adani Enterprises Ltd.
Meanwhile, Infosys Ltd., NTPC Ltd., Axis Bank Ltd., Oil and Natural Gas Corp. Ltd., and Power Grid Corp. of India capped the gains in the index.
Most sectoral indices ended higher, with Nifty Media gaining the most or 3.5%. Nifty FMCG, Nifty PSU Bank, and Nifty Realty were the only indices that fell.
Broader markets also rose in line with the benchmark indices. The S&P BSE Smallcap closed with 0.33% gains and the S&P BSE Midcap ended 0.24% higher on Wednesday.
On BSE, 14 sectors out of 20 advanced, while six declined.
S&P BSE Services rose 1.40% to become the top gainer among sectoral indices, while S&P BSE Oil and Gas fell 0.47%, emerging as the top loser.
The market breadth was skewed in favour of the buyers. About 2,092 stocks rose, 1,742 declined, and 101 remained unchanged on the BSE.
