Indian stocks extended gains till the fourth day today when they closed nearly 1.5% higher. Financial shares gained 2.8% with the Nifty Banking Index. The NSE Nifty 50 index rose 1.55% to close at 10,471 on Tuesday and the benchmark S&P BSE Sensex rose 500 points to 35,464. Larsen & Toubro Ltd. closed 6.7% higher and gave the Nifty 50 index the top boost, while Bajaj Finance Ltd., which rose 9.3%, was the top gainer on the index.
Investors sentiment was upbeat on positive signals from global markets and increased foreign exchange flows.
Markets welcomed news reports stating that top military commanders of the Indian and Chinese armies have terminated “mutual consent” from “all friction zones” along the Line of Actual Control (LAC).
Foreign institutional investors bought shares of high value ₹2,500 crores in the last three seasons. The information technology index fell by 1.5% due to concerns over US President Donald Trump’s plan to block the entry of foreign workers on H-1B visas.
What analysts said on today’s market rally:
Ruchit Jain, Senior Analyst – Technical & Derivatives, Angel Broking
“The index is building a ‘higher-than-high bottom’ structure and the broader markets have done quite well over the past few sessions. An increase in the index supported by broader market participation is certainly an encouraging sign and, therefore, we are optimistic. Shopping in the market. It has been suggested to use dips as an opportunity for. Traders have been happy with the midcap and small cap names (along with banking and NBFC space) on the last dew day.
So far, there are no signs of reversal and, therefore, one should focus on picking stocks from the perspective of momentum. The only caveat we want to highlight is the formation of the ‘Wolf Wave’ structure on the Nifty daily chart and the resistance is seen around 10550-10600 according to the pattern. We will see how the index behaves around this turn over the next two seasons. Until any reversal is observed, traders are advised to approach the stock specific approach and trade with a positive bias. Intraday support for the Nifty is capped around 10390 and 10300 while resistance is seen in the range of 10550-10600. “
Vinod Nair, Head of Research at Geojit Financial Services
“Indian indices traded positively with global indices, which appear to be in the market on the back of continued liquidity. Due to the proposed change in losses of the IT index, gains spread across sectors and market caps. Was. H-1B Visa Rules. Despite new virus infections, markets were also optimistic behind reports of a decrease in border hostilities and the pace of Kovid-19 recovery. Investors advised to be cautious and maintain booking profits. “
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investment
“We did not break the 10200 support and marched near the 10500 mark before the market closed. Now we should aim for 10700 as the next target for the Nifty index.”
Ajit Mishra, VP – Research, Religare Broking Ltd.
“The market increased profits for the fourth consecutive season, thanks to local cues and encouraging global markets. The first half was a bit sluggish but news of easing tensions between India and China helped the markets gain momentum in the latter half Ki. We suggest. Select Infra shares for banking, financial, FMCG and long trades.
Sumit Bagadia, Executive Director, Choice Broking
“FII net inflows into the Indian equity benchmark have strengthened the benchmark over the past few sessions. Going forward investors will keep a close watch on economic activity, the Kovid-19 position and its vaccines, crude oil prices, geopolitical. India-China.” Issues like border and US-China. At current levels, downside support comes at 10300 while upside resistance comes at 1010. “
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