Sensex Snaps 10-Day Losing Streak, Nifty Above 22,300: Why Did Market Rise Today, Will Rally Sustain? – News18
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The BSE Sensex surged by 740.30 points to settle at 73,730.23, while the NSE Nifty jumped 254.65 points to close above the 22,300 level at 22,337.30.
Stock Market Today
Snapping the 10-day losing streak, the domestic equities market on Wednesday surged more than 1 per cent in a broad-based rally supported by weakening of the US dollar. The BSE Sensex surged by 740.30 points to settle at 73,730.23, while the NSE Nifty jumped 254.65 points to close above the 22,300 level at 22,337.30.
Broader markets also witnessed a sharp rally with BSE MidCap and SmallCap indices climbing 2.66 per cent and 2.80 per cent, respectively.
Among the 30 shares of Sensex, 25 ended the day in green. Adani Ports, Tata Steel, PowerGrid, Mahindra & Mahindra, and NTPC were the top gainers surging by up to 5.02 per cent.
However, four shares ended the day in red, including Bajaj Finance, IndusInd Bank, HDFC Bank, and Zomato declining up to 3.25 per cent. Maruti Suzuki India closed flat.
On the BSE, the advance-decline ratio was heavily tilted towards advances. Out of the total 4,101 shares traded on the BSE, 3,247 shares advanced and 768 scrips declined. However, 86 shares ended flat.
A total of 52 shares touched their 52-week high, while 196 shares hit their all-time low.
Why Did Market Rise Today, Will The Rally Sustain?
Vinod Nair, head of research at Geojit Financial Services, said, “Emerging markets, including India, witnessed a relief rally, supported by a weakening US dollar. This upward momentum occurred despite the imposition of US tariffs on Mexico, Canada, and China, as well as the looming threat of retaliatory measures. While the long-term consequences of the ongoing trade conflict remain uncertain, elevated US inflation in the near term could reduce the likelihood of an interest rate cut. Domestically, broad-based buying was observed across sectors such as Auto, Metals, and IT, driven by bargain-hunting opportunities.”
However, the sustainability of this recovery remains uncertain amid escalating global trade tensions and their potential long-term economic ramifications, he added.
Bajaj Broking Research in a statement said the Nifty broke its 10-session losing streak, ending Wednesday’s trading up by 1.15% at 22,337.30. The benchmark indices saw a strong recovery from the oversold zone.
“The pullback was driven by several factors, including strength in Asian markets, bargain buying in oversold stocks, and value buying in blue-chip stocks. All 13 major sectoral indices closed in the green, with metals, information technology, and automobile stocks leading the rally. The BSE Midcap and BSE Smallcap indices surged by 2.66 per cent and 2.8 per cent, respectively,” Bajaj Broking Research added.
Technical View
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates, said, “The Nifty on a daily scale has witnessed a follow-up bullish candle after forming a bullish belt hold candlestick pattern, indicating strength. However, on the upside, the index has left bearish gaps in the range of 22,450-22,514 and 22,668-22,720, which will act as strong hurdles in the short term. Thus, 22,520 and 22,720 will act as stiff resistance levels for the index. On the downside, 21,950 will act as immediate support. Traders are advised to buy near support and book profits around the resistance zone mentioned above.”
Rupak De, senior technical analyst at LKP Securities, said, “The Nifty witnessed a solid rebound as the 21,800-22,000 zone provided strong support. The index has moved up after two days of sideways trading. Besides, the RSI is in a bullish crossover and has risen from the oversold zone. In the short term, the trend is likely to remain strong, with the potential to rise towards 22,700 and higher. On the lower end, support is placed at 22,100/22,000.”
