Sensex, Nifty rebound despite weak sentiments; HDFC Life surges over 5%
By Koustav Das: Benchmark stock market indices rebounded sharply after a weak opening on Tuesday, powered by gains in heavyweight financial services and banking stocks despite weak global cues.
The S&P BSE Sensex closed 446.03 points higher at 63,416.03, while the NSE Nifty 50 settled 126.20 points higher at 18,817.40. Broader market indices also continued their strong run.
Commenting on the global cues, Riches Vanara, technical And derivatives Analyst, Stoxbox, said, “On the global front, US markets closed lower on Monday, as investors were cautious of betting on riskier assets before seeing the outcome of Russia’s ended weekend revolt. European markets also closed slightly lower on Monday as investors digested weak economic signals.”
“Further, oil prices cut early gains on Monday, tracking a broader calm in financial markets as investors watched cautiously to see if there is any further fallout from an attempted rebellion in Russia that could disrupt energy supplies from one of the world’s largest oil producer nations. The jeopardy has left investors with a tough time figuring out if they want to be offensive or defensive in riskier assets,” Vanara added.
Among sectoral indices, the top gainers were Nifty Financial Services, Nifty Bank and Nifty Realty. Only the FMCG index ended in negative territory.
The top five gainers on the Nifty 50 were HDFC Life, Apollo Hospitals, SBI, JSW Steel and SBI Life. On the other hand, the top losers were Cipla, Britannia, Tata Consumer Products, Adani Ports and UPL.
Om Mehra, research analyst at Choice highlighted the crucial news of the HDFC merger approval, adding that it “spurred the bulls to take command.”
“Markets have reached very close to record high after winging in a narrow range amid mixed cues,” Mehra said.
“As June expiry comes to an end, the Indian equities market continues to be the strongest among its international counterparts thanks to continued support from banking stocks. Sectors like Pharma and FMCG may still outperform in the near term,” he added.
Meanwghile, V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT), said, “Markets are showing strength at lower levels and refusing to fall ahead. It is a complete bounce from the negative sentiments to positive bias.”
“Nifty supports are 18,740 and 19,690, wherein major resistance levels will be at 18,850 and 18,930. Sensex may face resistance at 63,520 and 63,670. On the other hand, the support area will be at 63,250 and 63,130,” she added.
