The market bounced back after the selloff over the past two trading days. The BSE Sensex surged 304 points, or 0.81 per cent, to settle at 37,717, while the Nifty 50 Index rose 82.40 points, or 0.73 per cent, to settle at 11,369.90. The board market also witnessed buying interest, with the BSE Mid-cap Index rising 0.52 per cent, while the Small-cap Index fell 0.27 per cent.
Jay Thakkar, CMT-head technical and derivatives research, AVP Equity Research, Anand Rathi Shares and Stock Brokers, said: “The Nifty closed well in the positive territory and it took good support at the lower end of the falling channel. It seems that wave 4 correction is over, and now if 10,250 levels are not broken the probability of 11,400-11,430 is quite likely.
“Similarly the Sensex recovered from the lower end of the channel and there too wave 4 seems to have got over now. In the short term, it is likely to further bounce from this oversold territory till recent lows aren’t broken. It is likely to bounce till 38,050 and 38,200 levels.”
Jayant Manglik, president, Religare Broking, said: “After correcting sharply over the last two sessions, the Indian equity benchmark indices staged a smart comeback, led by a sharp recovery in the rupee (vs $) from record lows of 72.91. After trading in a narrow range during first half, the Nifty Index bounced back sharply post noon from intra-day low from 11,250 and ended the session near the day’s high at 11,370 levels, up 0.7 per cent. Barring realty and banks, which underperformed, all the other sectoral indices ended in the green with FMCG, metals & capital goods being the top gainers. Globally, most Asian indices ended on a weak note, while European markets were trading flat to marginally higher.
“Despite the upmove, we continue to remain cautious on the Indian markets. Key macro data like IIP and CPI, movement of cru?de oil prices, currency rupee vs dollar) and gl?obal developments, es?p?e?cially on the trade war front will dictate the market trend in the co?ming sessions. Trad?ers sh?ould strictly hedge th?eir positions, as we expect volatility to incr?e?ase in the coming sessions.”