Market Bounces Back; Nifty Above 24,300, Sensex Gains by 1000 pts

The Indian benchmark indices came back stronger, thereby erasing the losses of the previous two sessions. Nifty 50 clocked above 24,300 on the back of strong buying in heavyweight stocks including Reliance Industries and various sectors, except IT.

Sensex ended 1,005.84 points or 1.27% at 80,218.37, while Nifty closed at 24,328.50, up 289.15 points or 1.20%. BSE Midcap index soared by 1.3%, while smallcap index was up by 0.4%.

Shares of Reliance Industries, SBI Life, Bharat Electronics, Sun Pharma, JSW Steel were the biggest gainers on the Nifty, while Shriram Finance, HCL Technologies, Eternal, UltraTech Cement, HUL lost their sheen.

Defence stocks like HAL and BEL soared by 5% and 3% respectively amid high geopolitical tensions. Sectorwise, all indices except IT ended in green. Metal, realty, oil & gas, pharma, PSU Bank were up in the range of 1-3%.

Global markets

On Friday, April 25, Wall Street reported weekly gains as investors analysed the company's earnings report and factored in easing trade tensions between US and China.

While European markets traded higher, Asian markets ended mixed as investors await progress in US trade negotiations with the region and signs of further stimulus from China.

Outlook for April 29

Rupak De, Senior Technical Analyst at LKP Securities said, “The Nifty recovered smartly, shrugging off the negativity of last week. However the upside was limited to the recent high keeping the consolidation phase intact. On the higher end 24,360 has remained a resistance level and the Nifty might spend some more time around the current range unless 24,360 is decisively breached. Above 24,360, the index could move towards 24,550 where the 61.80% Fibonacci retracement level of the previous fall from 26,277 to 21,743 lies.

On the lower end, support is placed at 24,000 below which the index might start falling towards 23,800 or even 23,350.”

Shrikant Chouhan, Head Equity Research, Kotak Securities said, “Today, the benchmark indices bounced back sharply, with the Nifty ends 289 points higher while the Sensex was up by 1006 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Defense and Oil and Gas indices outperformed, with Defense up 4 and Oil and Gas gain 3 percent.

Technically, after a promising opening, the market maintained positive momentum throughout the day. Additionally, it formed a long bullish candle on the daily charts, which supports a further uptrend from current levels. We believe that the short-term market texture is still on the bullish side but buying on intraday dips and selling on rallies would be the ideal strategy for day traders.

On the downside, 24200/79800 and 24100/79500 would act as key support zones, while 24400-24500/80500-80700 could serve as crucial resistance areas for the bulls. However, if the market falls below 24100/79500, the uptrend would become vulnerable.”