NEW DELHI, June 6
The benchmark equity indices ended Thursday’s trading session in the positive territory. The NSE Nifty 50 gained 201.05 points or 0.89% to settle at 22,821.40, while the BSE Sensex jumped 692.27 points or 0.93% to 75,074.51. Bank Nifty index ended higher by 237.30 points or 0.48% to settle at 49,291.90.
The broader indices ended in positive territory, with gain led by Large-cap and Midcap stocks. Media and Realty stocks outperformed among the other sectoral indices while Pharma and FMCG stocks shed. Tech Mahindra, HCL Technologies, Shriram Finance, SBI Life Insurance, and State Bank Of India were the top gainers on the NSE Nifty 50, while the laggards includes Hindalco Industries, Hero MotoCorp, Hindustan Unilever, Asian Paints, and Mahindra & Mahindra.
“Nifty witnessed a gap up opening and after consolidating during the day. It held on to the gains and closed in the green up ~201 points. On the daily charts, we can observe that the Nifty has witnessed a sharp recovery in the last couple of trading sessions and now reached the 22900 level which coincides with the 78.6% Fibonacci retracement level of the fall from 23340 – 21280,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Gedia We expect Nifty to consolidate after the sharp runup and considering it has reached a crucial resistance level the probability of a rangebound movement is high. The range is likely to be 21800 – 23000 from a short-term perspective. INDIAVIX cooled off by another 12% today and closed around 16.59 today and we expect it to cool off further as the uncertainty reduces.
Whereas commenting on the same Ajit Mishra – SVP, Research, Religare Broking said that Markets edged higher, gaining nearly half a percent, continuing Wednesday’s rebound. After an initial uptick, the Nifty oscillated within a range and finally settled at 22,821.40 levels. Most sectors moved in sync with this trend, with realty, IT, and oil & gas among the top gainers. The broader indices outperformed the benchmark, gaining between 2%-3%.
“It appears that markets have adjusted to the recent election results, and stability on the global front is further boosting positivity. While a breather in the index might occur after the recent rebound, the overall tone is likely to remain positive. With all key sectors participating in the move, we suggest maintaining a “buy on dips” approach, focusing on quality names during pullbacks,” Mishra added.
