Nifty Recovers 200 Points to End the Session Near Day high

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

After one session of pause, Nifty resumed its uptrend, gaining 50 points to close at 25,693. It opened 37 points lower and faced selling pressure down to 25,491, but reversed sharply post-10:45 AM, bouncing over 200 points from the day's low to settle at the session high. For the extended six-session week, Nifty posted a solid 3.5% gain. NSE cash market volumes were lower by 5% as compared to yesterday.

ITC, Kotak Mahindra Bank, and Hindustan Unilever led gainers list of Nifty, while HDFC Life, Tech Mahindra, and TCS endured selling pressure as top losers.

Sectors showed mixed results, with FMCG, consumer durables, and reality posting the strongest advances; IT, pharma, and healthcare lagged, heading the decliners.

The broader market recovered sharply from the morning lows along with the Benchmark Indices. Both Nifty Midcap 100 and smallcap 100 Index recovered more than 1% from the low and finally ended with losses of 0.02% and 0.27% respectively. Market breadth stayed weak for the second session, as BSE advance-decline ratio settled at 0.85, underscoring ongoing profit-taking in mid- and small-caps.

The Indian rupee weakened 30 paise versus the dollar, closing at 90.66, driven by state-run banks buying dollars for defense related obligations and traders covering shorts.

Despite pulling back from the swing high of 26,341, Nifty holds above key moving averages, keeping the trend bullish. Key support rests at 25,440 - 25,500, with resistance at 25,863 and 26,373.

Source : Equity Bulls

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HDFCSecurities Nifty Sensex MarketCommentary