Indian stocks extended the rally to the eighth consecutive session today, reaching new highs. The NSE Nifty 50 Index finished 0.93% higher at 12,749 and the S&P BSE Sensex gained more than 300 points to finish at 43,593. Both indices have gained more than 9% since the beginning of the month. The Sensex is now up about 4,000 points in just eight days.
“After a gap-up opening, the earnings reserve registered at a higher level that dragged the Nifty negative in the first half. However, the benchmark indices recovered all their losses in the second half and came close to 12,800 supported largely by metals, healthcare and IT sectors, “said Ajit Mishra, vice president of research at Religare Broking.
“We reiterate our positive but cautious view and suggest maintaining a ‘buy on the dips’ approach. Looking ahead, the last leg of corporate earnings and national economic data will be on the radar.”
Metals, information technology and pharmaceuticals stocks led the rally today. The Nifty Metals Index rose 3.5%. Miner Hindalco rose 6% while Tata Steel advanced 7%. Pharmacist Dr. Reddy’s Labs gained 4%, helping the Nifty Pharma index rise 3.6%.
Reliance Industries fell 4% to limit overall market gains. Meanwhile, the MSCI World Stock Index gained 0.1% on Wednesday, as news of a possible COVID-19 vaccine offset concerns about rising infections.
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Here’s what analysts had to say about the current market performance:
Vinod Nair, Head of Research at Geojit Financial Services
“The domestic market showed positivity in large part due to sectors such as pharmaceuticals, metals and IT, while some volatility was shown in the overall market. The latest update to the Covid vaccine has lifted the spirits of Western markets with Europe showing a rapid recovery in anticipation of rapid roll-out. In the US, markets witnessed a shift in investment from technology-based companies to cyclical and small-cap companies to benefit from a revived economy. We believe the financial market The world is getting a lot of new money, which was on hold during the US election period, while the actual result is much better. Markets have quickly reached the upper level with excess optimism backed by easy money, caution is recommended in the short term, since in terms of production and distribution, the real profit will take time or “
Manish Hathiramani, Technical Analyst and Property Index Trader, Deen Dayal Investments
“Markets are bullish with bullish momentum. Traders may consider booking profits at regular intervals and updating their stop-loss levels as well. We have strong support at 12,450-12500. A buy downturn strategy is recommended whenever there are dips. intraday or corrective phases. 13000-13100 target is likely over a period of time. “
Shrikant Chouhan, Executive Vice President of Equity Technical Research, Kotak Securities
“In the last three days, the market recovered, following a 100% recovery pattern from intraday lows. Today, too, the Nifty 50 Index recovered from its low. After falling to 11570 levels, the Nifty 50 Index rose to the highest level of the day around the 12770 levels. The market was more specific to stocks than sectors. Today, the market has formed a “Hanging Man” formation on the daily chart, which is a sign of weakness, however, it could turn positive for the market if tomorrow Nifty crosses the 12800 level and remains above it. until the end of the first half of the trading session. This type of formation appears in the final stage of the euphoric upward movement. Tomorrow could be the most crucial day for the market. Above the 12800 level, the Nifty could go to 12950. On the other hand, 12670 and 12570 would be supports for the market. ” (With contributions from the agency)
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