Nifty Surges Over 200 Points Amid Broad-Based Buying

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Riding a wave of strong global tailwinds, the Nifty opened with a 90-point gap-up and maintained upward momentum throughout the session. Nifty finally settled with strong gains of 206 points at 26,172, its highest closing level since December 5. The NSE cash market turnover rose 5% higher than the 10-day average, reflecting increased participation.

Within the Nifty pack, Trent, Shriram Finance, Wipro, and Infosys were among the top gainers, while HDFC Life, Tata Consumer, SBI, and Kotak Bank witnessed selling pressure, ending the day as key laggards.

Baring Nifty consumer durables, all the Sectoral indices ended in the green. The rally was most pronounced in the IT, Metal and Auto sectors, which emerged as the day's top performing sectors.

The broader market extended its outperformance, with the Nifty Midcap 100 advancing 0.84% and the Nifty Smallcap index rising 1.17%. Market breadth remained positive for the second consecutive session, as the BSE advance-decline ratio stood at 1.85, highlighting sustained buying interest in mid- and small-cap segments.

Technically, Nifty has formed a bullish higher-top, higher-bottom structure on the daily chart by closing above the key resistance level of 26058. Nifty could now extend its rise towards the next resistance levels, placed at 26,202 and 26,330. On the downside, the level of 26,000 is expected to act as a near-term support.

Source : Equity Bulls

Keywords

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