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The market snapped its three-day losing streak and closed half a percent higher, but the broader markets staged smart show on strong breadth.
The 30-share BSE Sensex rallied 196.37 points to 36,063.81 and the Nifty50 gained 71 points at 10,863.50.
About three shares advanced for every share falling on the BSE.
IndusInd Bank, ICICI Bank, HDFC, L&T, and Infosys were leading contributors while Bharti Airtel, Axis Bank, UPL and Bajaj Auto were under pressure.
Among broader space, TVS Motor Company, Jet Airways, NALCO, Union Bank, Vijaya Bank, SAIL, RCF, Wockhardt, Dish TV, Meghmani Organics and OBC rallied 4-11 percent.
Marico, Motherson Sumi, and Havells India were under pressure.
Nifty Midcap index has bounced from long term 200 weeks EMA which was held on multiple occasions off 2008. Since its inception in 2004, corrective cycles in Nifty Midcap and Smallcap indices have not lasted for more than 14 months, which makes us believe both indices have approached maturity of price-wise and time-wise correction
Going ahead, we expect Nifty resolve out of upper band of consolidation (10,900), unfolding next leg of up move towards 11,400 in coming months. Meanwhile, volatility would remain high in the run-up to the election, which should be capitalized as an incremental buying opportunity in the range of 10,750-10,600. In the process, we expect Banking, consumption and metals to outperform.
However, despite the host of negative news, the index managed to form a sequential trough (10,585), indicating buying demand at elevated support levels underpinned by improving market breadth, in turn signifying market resilience.