The market rebounded with the Sensex gaining 550 points, or 1.63 per cent, to settle at 34,442 while the Nifty 50 surged 188 points, or 1.85 per cent, to close at 10,386.60. The broader market also edged higher with the BSE Mid-Cap Index rising 1.56 per cent and the Small-Cap rising 1.38 per cent.
Among the sectoral indices on the BSE, IT (up 3.53 per cent), Teck (up 3.18 per cent) and Consumer Durables (up 2.32 per cent) outperformed the Sensex. The Metal index was down 1.4 per cent.
Financial sector stocks were in the limelight. PNB Housing Finance jumped 9.75 per cent, DHFL 8.49 per cent, Indiabulls Housing 8.48 per cent and HDFC 5.78 per cent. Gruh Finance, Can Fin Homes and GIC Housing Finance rose more than 3 per cent. IndusInd Bank was up 4.47 per cent, Axis 3.43 per cent and Yes Bank 3.3 per cent.
Technical view
Mehul Kothari, senior technical analyst-equity, IndiaNivesh Securities, said: “Despite heavy selloff, the Nifty managed to safeguard the intermediate support level of 10,100 and displayed immense strength. The magnitude of rise increased once the Nifty cleared the hurdle of 10,290 and reached the first target of 10,400. Now on the daily chart, we are observing ‘Bullish Failure Swing’ in RSI along with the divergence, which indicates the possibility of further upside towards 10,550–10,600 levels.
“On the downside, the intermediate support of 10,100 should get more weightage as Wednesday’s low too was 10,105. Only a move below the same might bring the bears back in action.”
Market view
Mustafa Nadeem, CEO, Epic Research, said: “A sharp decline in volatility aided the confidence of bulls. Positive global cues, drop in crude oil and continuous buying momentum in financials, IT, pharma and PSU kept the bulls in charge.
“As per derivatives data, Nifty saw addition in higher strikes of 10,400-10,500 while the writing seen at 10,000 two days back has now shifted to 10,100 and 10,200. This is a good indication of a base building for this rally to be a directional play with supports coming up.
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