Sensex soars 900 pts, Nifty rises above 22,400 as PSU banks, tech stocks gain

The Sensex and Nifty 50 extended early gains and were trading over 1 percent higher in the afternoon on March 28, led by gains in financial services and IT sectors. Analysts expect some sort of volatility ahead of the monthly derivatives expiry today.

With an impending long weekend, exercising caution by refraining from aggressive overnight positions would be prudent to mitigate undue risks, said Sameet Chavan, chief analyst for technical and derivatives at Angel One.

Although BSE Midcap and BSE Smallcap gained 0.5 percent and 0.7 percent, they underperformed the benchmark indices.

At 1:37 pm, the Sensex was up 918.69 points or 1.26 percent at 73,915, and the Nifty was up 302.80 points or 1.37 percent at 22,426. About 2,019 shares advanced, 1,318 declined, and 76 were unchanged.

Sectoral Trend

Barring Nifty Media, all sectoral indices were in the green. Nifty Bank, which rose over 1 percent was leading the gains on Nifty 50. Nifty PSU Bank gained nealry 2 percent, making it the top gainer among sectoral indices. Nifty Energy, Nifty Infrastructure, and Nifty Healthcare also rose over 1 percent each.

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Fundamental View

The primary catalyst for the ongoing rally is the huge liquidity flows into the market, said VK Vijayakumar, chief investment strategist at Geojit Financial Services. "DIIs have pumped in a massive Rs 24,373 crore into the market during the last seven trading days imparting resilience to the market. Since flows into the market continue and are showing no signs of slowdown, a scramble for high quality stocks with good growth prospects is likely," he said.

Technical View

Nifty 50 has formed an inverted head and shoulders chart pattern, signaling a bullish reversal, said Mandar Bhojane, Research Analyst at Choice Broking. "Sustaining above the 22,200 level may lead to further gains towards 22,400 and 22,500 levels in the coming days. Conversely, the 22,000 level is anticipated to provide strong support, bolstered by the alignment of the 20, 50, 100, and 200 EMAs."

Key Nifty gainers

Bajaj Finserv, Bajaj Finance, Apollo Hospital, Eicher Motors

Key Nifty losers

Shriram Finance, Bajaj Auto, Britannia, HCLTech

Key Sensex gainers

Bajaj Finserv, Bajaj Finance, Nestle, Power Grid

Key Sensex losers

HCLTech, Axis Bank

Stock moves

Bajaj Finance: Shares surged 4.5 percent following reports that subsidiary Bajaj Housing Finance was planning to go public, with a valuation $9-10 billion.

Chalet Hotels: Shares jumped around 5 percent, extending the previous session's gains after the company's board of directors approved a proposal to raise funds through Qualified Institutional Placement (QIP).

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