By Siddhant Mishra
The Indian markets saw a jump in the first session of the second week of the calendar, thanks to encouraging cues from the US. The Sensex zoomed 846.94 points, or 1.41%, to close at 60,747.31, while the Nifty50 surged 241.75 points, or 1.35%, to close at 18,101.20.
Index heavyweight Reliance Industries rose 2.34%. Titan (down 2.12%) as well as Bajaj Finserv and Maruti, were the only ones to end in the red.
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Independent market analyst Ambareesh Baliga attributed the market performance to the bounce-back by the US markets late on Friday, but doubts the rally will sustain, owing to profit-booking.
“The Nifty at 17,800 will give good support but below that we could see sharper corrections. There could be some correction in banking, NBFC, and metals as they’ve been doing well. Since IT has underperformed, there are low chances of a sharp correction,” said Baliga.
The BSE MidCap and SmallCap indices gained 0.93% and 0.50%, while the large-cap index jumped 1.31%. Only consumer durables ended in the red among sectoral indices, with the BSE Teck rising the most at 2.61%.
A total of 2,009 stocks advanced on the BSE, with 1,627 stocks declining.
Titan and Bajaj Finserv were also the biggest laggards among the Nifty pack, shedding 1.90% and 1.28%, respectively. Financials, and tech stocks led the overall gains, with the Nifty IT zooming 2.83% and the metals and auto indices also gaining over 1% each. Consumer durables was the only index to close in the red, down 0.46%.
“After massive profit-booking for the past three sessions, the markets recovered thanks to the recovery in the Dow. The buying in IT stocks was mainly supported by the IT sector doing well in the US markets. The Dow and Nasdaq saw strong buying interest in IT, which led to the sector finding interest in India, too,” said Chandan Taparia, Head (Technical & Derivatives Research), Motilal Oswal Financial Services.
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“The only concern is that there has to be follow-up buying for these levels to sustain, even as the support is intact. Over the next two-three weeks, we have the earnings season and the Budget coming up, which have to be observed,” added Taparia.
He pointed out that 17,777 is the technical support zone for the Nifty, with an upside potential of 18,250, which is when it could move further up. He expects banking, which has outperformed, along with auto, and selective FMCG stocks to do well.
DIIs were buyers to the tune of Rs 1,723.79 crore but FIIs remained net sellers, pumping out Rs 203.13 crore.