Dalal Street Corner: Nifty50 reclaims key sentimental level of 17200 - what should investors do on Wednesday?
The broader markets outperformed the benchmarks as mid-cap was up over 1 per cent and small cap gained almost 2 per cent at the market close.
The Indian markets closed on a higher note amid positive global cues on Tuesday for the second straight session. The BSE Sensex gained almost 500 points and Nifty50 above sentimental level of 17200.
The surge in the market was led by auto stocks, followed by IT and pharma stocks at the close today.
The broader markets outperformed the benchmarks as mid-cap was up over 1 per cent and small cap gained almost 2 per cent at the market close. While Nifty Bank, contributing most to the Nifty’s surge, closed around 120 points higher or 0.35 per cent to 35177-mark, led by HDFC Bank.
As many as 48 shares closed in the green and 2 in the red on Nifty50. Sun Pharma gained most with over 3 per cent after getting EUA for molnupiravir in India, followed by Asian Paints. While IndusInd Bank, Power Grid each closed flat with negative bias in otherwise positive market Tuesday.
Unlock theme stock, a cinema theatre chain company PVR slipped 4 per cent after fresh restrictions in Delhi including keeping cinema halls shut. Similarly, Ajanta Pharma shares rose after the company says it will buyback 1.3 per cent shares for Rs 285 cr at Rs 2,550 each share.
The market analyst and Head of Research at LKP securities, S Ranganathan said, “Advance- Decline ratio was very favourable as investors sought to accumulate high quality Midcap names across sectors as well as Textile Exporters in Afternoon Trade.”
“The year 2021 saw the Bank Nifty under-perform the Nifty-500 by over 15 per cent despite earnings upgrades as the street worried on the likely disruption by Fintechs on digital lending & payments.”
"While the Nifty managed to touch 17250, it closed below it. We need to keep above 17250 for a bullish trend to emerge and sustain. The index can scale up to 17600 if we close above 17250. The market has good support at 16800,” Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said in his post market comment on Tuesday.
“Markets extended Monday’s up move and gained nearly a percent, tracking firm global cues. The benchmark opened with an uptick and gradually inched higher as the day progressed,” Ajit Mishra, VP - Research at Religare Broking Ltd said.
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