Indian Indices Rebound Sharply From Day's Low; Reliance Rises Over 1%
Indian benchmark indices rebounded sharply from the day's low after buying action returned in banks, auto and IT counters. Shares of heavyweight Reliance Industries (RIL) rose more than 1 per cent, pushing the benchmarks higher.
The S&P BSE Sensex shot back by over 900 points from the intra-day low of 69,920 and settled at 70,865.10, up by 359 points or 0.51 per cent. Broader Nifty traversed 310 points to hit the day's high of 21,379.70 before closing at 21,376, up 158.95 points or 0.75 per cent. Banking gauge Nifty Bank ended 637.35 or 1.32 per cent higher at 48,107.90.
The market breadth turned in favour of bulls with 38 stocks closing the session in the green. The top gainers were Power Grid, Bharat Petroleum Corporation (BPCL), Britannia Industries, Apollo Hospitals and HDFC Bank. In contrast, the top losers were Bajaj Auto, Bajaj Finance, Axis Bank, HCL Technologies and Cipla.
FII and FPIs, on Thursday, saw a net sales of Rs 1,636.19 crore in the cash segment. A total of Rs 1,1351.48 crore was sold against a total purchase of Rs 9,715.29 crore. Domestic institutional investors saw a net purchase of Rs 1,464.70 crore in the cash segment. A total of Rs 8,285.51 crore was sold against a total purchase of Rs 9,750.21 crore.
Meanwhile, After a subdued start, the market reversed from the day’s low amid the buy-on-dips strategy. However, the overall trend is subdued. FIIs stayed muted ahead of the festive break and the global market traded negatively ahead of the announcement of the US GDP data today. Some consolidation is warranted in the near term due to peak valuation.
He added that a gradual rise in oil prices and concern over high domestic food inflation may hinder the stretched rally of the last 2 months.
Technically, the important key resistances placed in October Nifty future are at 21,376 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 21,404 – 21,606 levels. Immediate support is placed at 21,202 – 21,008 levels.
