Volatility to remain high

The market benchmarks Sensex and Nifty-50 rose sharply by 1.35 per cent and 1.5 per cent, respectively, on the back of rally in bank, NBFC stocks as the State Bank of India announced to buy NBFC loans in order to provide liquidity. Broader market outperformed the benc­hmarks as BSE Mid-cap Index registered highest gain of 4.23 per cent, while the Small-cap Index gained 3.67 per cent. Rupee also gained 20 paise to close at 74.20 as against previous close at 74.39. The Sensex gained 461.42 points, or 1.35 per cent, to settle at 34,760.89, and the Nifty 50 Index gained 159.05 points, or 1.54 per cent, to settle at 10,460.10.

Technical view

Sameet Chavan, chief analyst-Technical and Derivatives, Angel Broking said, “Our markets opened with a decent upside gap despite mixed global cues and subsequently, a sustained buying was being witnessed throughout the session to eventually conclude the session with whopping gains over one and half a per cent.

“The Index has been gyrating around its key support levels and since the overall market was so deeply oversold, a bounce back was very much on cards. Market set the platform in last two days by threatening traders to go long at lower levels and hence, conditions became conducive to give such kind of sharp relief move.”

He added: “With Wednesday’s gigantic move, the index has closed convincingly above the 10,400 mark and thereby unfolded further room towards 10,540–10,600 levels. On the downside, 10,436 followed by 10,390 would be seen as immediate supports for the forthcoming session.”

Market view

Jayant Manglik, president, Religare Broking, said, “. Barring IT, which closed in red, all the other sectoral indices ended on a positive note with auto, banks and consumer durables being the top gainers. We maintain our cautious view on the Indian markets in the near term, as volatility is likely to remain high. Focus of market participants would shift to corporate earnings season and the domestic macro data like IIP and CPI / WPI inflation which are scheduled over next 1-2 weeks, as it would dictate further course of markets,” Manglik said.

—Ravi Ranjan Prasad