Stock-specific rally seen

The market began the first trading day of the new financial year on buoyant note amid intermittent volatility. The Sensex gained 286.68 points, or 0.87 per cent, to settle above the 33K mark at 33,255.36 while the Nifty rose 98.10 points, or 0.97 per cent, to close at 10,211.80.

The broad market showed strength with the BSE Mid-Cap and Small-Cap indices rising 1.4 per cent and 2.35 per cent, respectively, both outperforming the Sensex.

Among sectoral indices, Healthcare was up 2.48 per cent, followed by Auto (2.14 per cent), Capital Goods (2.03. IT (1.28 per cent), Power (1.29. IT (up 1.28 per cent), and IT (1.28 per cent).

Technical view

Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said, “The Nifty is oscillating within the boundaries of a small ‘Falling Channel’. The higher end of this pattern is at 10250-10280, which would be seen as an immediate as well as important resistance zone. Looking at the individual stocks, a possibility of (Nifty) surpassing the higher boundary is on the cards. In this case, we may see this stock-specific relief rally getting extended towards 10350-10400 levels. An ideal scenario would be a decent relief rally or a slide below Wednesday’s low i.e. 10096 (whichever comes first). For the coming session, 10180-10127 would be seen as immediate support levels.

Market view

Vinod Nair, head of research, Geojit Financial Services, said, "The market rallied on account of stellar auto sales and value buying of pharma stocks influenced by US FDA approvals. US stock futures dropped and other Asian markets reversed an early advance, where volume was low as many markets remained closed. Markets are expected to remain choppy and support levels are likely to be tested globally due to looming uncertainty. Back home Investors are focusing on upcoming RBI policy while consensus shows status quo on key rates due to declining yield and inflation."

—Ashwin Punnen