Stock rally may continue

The market made decisive upward move with the Sensex and Nifty-50 gaining more than one per cent as tensions seemed easing on the Indo-Pak border.

The Sensex and Nifty opened in the green after extended weekend and dipped below 36,000 in early trade to 35,926 but made a recovery soon and then added 378,73 points or 1.05 per cent in a gradual upward move to close at 36,442.54. Nifty-50 gained 123.95 points or 1.14 per cent.

The broader markets also gained in tandem with the BSE Mid-Cap up 2.01 per cent and Small-cap up 3.11 per cent.

On the sectoral front the top gainers included oil & gas (2.75 per cent), metal (2.52 per cent), bankex (1.81 per cent), realty (1.96 per cent), power (1.93 per cent).

Technical View

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking, said, “Most of the uncertainty on the global as well as domestic front is behind us now and our markets gave it a big ‘Thumbs up’. In fact, during the second half, we saw complete gush in the market as there were few heavyweight pockets like banking and oil & gas had soaring moves. Adding to that, the Mid-Cap basket attracted some buying. The ‘Mid-Cap’ Index finally had a colossal intra day rally to confirm a ‘Triangle’ pattern breakout on daily chart. Hence, we continue to remain upbeat on this space.

“Index is now at a kissing distance from surpassing the ‘Downward trend Line’ resistance of 11000–11030. Looking at the overall set up, we expect it to happen in the forthcoming session, which will open up further room to march towards 11,000 and beyond levels.”

Market View

Devang Mehta, Head – Equity Advisory, Centrum Wealth Management, said, “The buoyancy in the market sentiment is clearly evident from last few sessions, where the Mid-Cap and Small-Caps have come to the fore and started to outperform. The market breadth has also improved.”