Indian stocks closed higher today amid a volatile trading session. The NSE Nifty 50 Index closed 0.34% higher at 11,937.65, while the S&P BSE Sensex closed 163 points higher at 40,707. Intra-day, Nifty peaked at 12,018 but was unable to maintain that level. This is the third time in eight days that Nifty has failed to close above 12,000 after breaking above that intraday level.
The Nifty Bank Index closed 1.33% higher today after a senior Finance Ministry official said the government is working on the next stimulus package to support the economy amid positive signs of a drop in cases of COVID-19.
“Nifty has rebounded from just over 12,000 for the third time in the last eight days. The drop from there has reversed sharply, suggesting that Nifty may not be ready to give up right away. Materials and supplies Large power supply units are back in favor in industry rotation, while BFSI and TI have been under pressure, “said Deepak Jasani, director of retail research at HDFC Securities.
Finance was the main driver in the first-class index, with major lenders HDFC Bank, HDFC Ltd and ICICI Bank Ltd adding between 1.4% and 1.9%.
Reliance Industries Ltd was the main hurdle, ending the day down 1.5% after rising as much as 1.7% earlier in trading.
Meanwhile, global confidence improved on signs of progress toward a new coronavirus aid package in the US.
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Here’s what analysts had to say about the current market performance:
Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking
“As of noon, it seemed that the index was finally ready to resume its uptrend above 12000, as the banking package and the markets in general were climbing quite well. However, many times we have seen that when things seem quite easy, the market tends to give a bit of reality and that is what we witnessed during the day. Intraday volatility mainly marked the weaker hands and the bulls continued to dominate at the close. Due to the strong recovery in the final hour, 11800 – 11775 is still a major support, and until this is defended one should continue to hold a positive stance. On the upside, 12000-12025 has certainly drawn some profit bookings recently, but once we see a break above the same, wider markets would provide good business opportunities. “
Manish Hathiramani, Technical Analyst and Property Index Trader, Deen Dayal Investments
“Despite being close to the 12050 levels, we couldn’t get past that. The Nifty reacted sharply from that 12000-12050 zone and has resumed its lateral movements. For any upward movement to begin, it is imperative that we cross 12050 as it will lead the index is at 12200-12300 levels. On the other hand, support is at 11650 and until we break that, we are going to be in range with a positive bias. “
Ajit Mishra, Vice President of Research, Religare Broking Ltd
“Markets managed to finish in the green in a highly volatile session. After the bullish start, the benchmark remained sideways in the first half, however volatile swings in selected major indices in the second half unsettled participants. overall market performance was in line with the benchmark and finished flat. On the sector front, Realty, Telecom and Metals were the main winners, while consumer goods and IT ended up losing. “
“We expect volatility to remain high, citing mixed global signals and the prevailing earnings season. Nifty has held in the 11,650-12,050 range and needs a decisive break for the further rise. In the meantime, traders should limit their positions. leveraged and hold positions on both sides. ” (With contributions from the agency)
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