Indian benchmark indices witnessed a strong rally on Wednesday. Riding on global cues, the market rebounded strongly, bringing investors a welcome boost. News of a possible peace agreement between the United States and Iran created a positive market sentiment, pushing the Sensex nearly 1,000 points higher and the Nifty crossing 24,300. At the end of trading, the Sensex gained 940,73 points to close at 77,958.53. The Nifty also jumped 298.15 points to reach near 24,330.95. The market witnessed widespread buying, with approximately 2,755 stocks advancing while 1,287 stocks declined.
“The markets staged a strong rebound, with Nifty closing above the immediate resistance at 24,300 levels. The index has established a strong support zone around 24,000, which aligns with both the 21-DMA and 50-DMA. Additionally, Nifty has broken out of a symmetrical triangle pattern on the daily chart, indicating a positive shift in the short-term structure with potential upside towards 24,500 levels. On the volatility front, India VIX declined sharply by 7%, slipping below the 17 mark to a one-month low. Continued easing in volatility is likely to further support the ongoing bullish momentum,” said Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd.
Banking stocks in action
Banking stocks were a major contributor to the market rally. Private bank and PSU bank indices rose 2-3 per cent. The banking sector received support from the government’s approval of a credit guarantee scheme for businesses. Auto, metal, pharmaceutical, and realty sectors also rose 1-2 per cent. However, FMCG and power sectors saw slight declines, limiting the market’s gains.
Indigo among top gainers
On the Nifty, stocks like InterGlobe Aviation, Trent, Tata Motors, Shriram Finance and Asian Paints were among the top performers, while ONGC, Reliance Industries, NTPC and L&T were among the laggards.
Not only large-cap stocks, but mid-cap and small-cap stocks also saw strong buying. Both indices rose by around 2 per cent, indicating strong investor confidence in the market.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
