The Sensex rose 276.86 points, or 0.78 per cent, to settle at 35,934.72—its highest closing level since 31 January 2018—while the Nifty 50 rose 80.25 points, or 0.74 per cent, to settle at 10,852.90—its highest closing level since 13 June 2018. The BSE Mid-Cap Index rose 1.23 per cent and the Small-Cap Index rose 1.58 per cent. Both these indices outperformed the Sensex.
Among the sectoral indices on the BSE, Capital Goods Index (up 1.46 per cent), Energy (up 1.46 per cent), Industrials (up 1.43 per cent), Utilities (up 1.42 per cent), Power (up 1.32 per cent) and the Metal (up 1.24 per cent) underperformed the Sensex.
Technical view
Mustafa Nadeem, CEO, Epic Research, said: “Nifty forms a hammer and gives a breakout of contracting triangle indicating further bullishness and retest of previous all-time highs of 11,171. A broad buying in sectors across with indices contributing 1 per cent to 2 per cent and bullish bets in heavyweights indicate the trend is here to stay for the medium term.
“Nifty has been in a contracting triangle from last few weeks while the last couple of days has been stiff consolidation and that's the character of triangles. A breakout with gap up with a bullish hammer pattern further indicates that breakout is fairly positive. Now the only point of inflexion bulls need to defend is 10,790-10,800 mark on a closing basis.
“The upside now has very specific levels for bulls to achieve and break firstly the previous swing high that is placed at 10,950 and beyond that 11,171. On the downside, we have trend line support at 10,800 which is the wall of China for bulls while bears will try aggressively to breach it. All in all, we see further strength for bulls as far as if they are above 10,800 on a closing basis.”
Market view
Vinod Nair, head of research, Geojit Financial Services, said: “Change in focus to upcoming quarter earnings and appreciation in rupee led the market to rally with Mid & Small-Cap outperformance. First quarter FY19 result season will kick start with IT heavyweight and investors are keen on upcoming data of CPI inflation and IIP this week to get more cues on market direction. Additionally, global cues were positive due to better US job data."