Indian equity markets gained more than 2 percent on October 4 as they clocked their best day in five weeks, lifted by positive global cues, upbeat quarterly updates by banks and buying across sectors.
The 30-pack Sensex was up 1,276.66 points, or 2.25 percent, at 58,065.47, and the Nifty was up 387 points, or 2.29 percent, at 17,274.30.
The market will remain shut on October 5 for Dussehra.
"Indices surged over 2 percent buoyed by positive global cues and encouraging quarterly updates on advances and collections from banks during the second quarter. Ahead of the festive season, the street is optimistic on retail demand across segments and we saw financials lead from the front today," said S Ranganathan, Head of Research at LKP Securities.
Participation of the IT sector lent ammunition as almost all sectoral indices ended in the green, he said.
Stocks and sectors
IndusInd Bank, Adani Ports, Coal India, Hero MotoCorp and Bajaj Finance were among the top Nifty gainers. Power Grid Corporation and Dr Reddy's Laboratories were the top losers.
All sectoral indices ended in the green, with Nifty bank, auto, metal, information technology, energy and PSU bank rising 2-3 percent.
On the BSE, auto, capital goods, bank, metal, information technology, power and realty were up 2-3 percent.
The BSE midcap index added 2.4 percent and the smallcap index rose 1.5 percent.
A long build-up was seen in Mahindra & Mahindra Financial Services, IDFC First Bank and Zee Entertainment Enterprises.
More than 100 stocks touched their 52-week high on the BSE. These included Bharti Airtel, Cipla, KRBL, Lemon Tree Hotels and Anant Raj on the BSE.
Among individual stocks, a volume spike of more than 100 percent was seen in M&M Financial Services, Delta Corp and GSPL.
Outlook for October 6
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
The Nifty saw a smart recovery on October 4 after a steep decline in the previous session. On October 3, the index had gone down to retrace nearly 78.6 percent of the rise seen on September 30. The key Fibonacci level acted as a springboard, resulting in a swift up move on October 4.
The Nifty crossed the swing high of 17,187 and entered into a gap area that was created during the decline last month.
Going ahead, 17300 is the immediate barrier to watch out for. Unless that is crossed on a closing basis, the index is likely to witness short-term consolidation.
If the index surpasses 17300 on a closing basis, it can move to 17,500. Near-term support shifted higher to 17,000.
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
Technically, the Nifty bounced back sharply after a sharp intraday correction. Post gap up opening it held the level of 17,100 and succeed to close above the same. It also formed higher bottom on intraday charts, which indicates the continuation of the uptrend in the near future.
The short-term market structure is positive but due to the temporary overbought condition, we could see range-bound activity in the near future.
For the traders, 17,200-17,150/57,800-57,600 would be the key support zones, whereas 17,400-17,425/58,300-58,400 would act as important resistance zones.
Buying on intraday correction and selling on rallies would be the ideal strategy for the day traders.
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