Indian equity indices ended on a positive note on Tuesday as fears of the US recession eased down. The Nifty 50 rose 126.20 points or 0.51% to settle the day’s trading at 24,698.85. The Sensex settled 378 points or 0.47% higher at 80,802.86. SBI Life Insurance, Kotak Mahindra Bank, Axis Bank, Reliance Industries, and Bajaj Finserv were the top five major contributors on Tuesday.
Sectoral Index
The Bank Nifty rose 434.80 points or 0.86% to end the session at 50,803.15. Following the overall market trend, the Nifty Midcap 100 settled 487 points or 0.84% higher at 58,247.85. In the broader markets, smallcap and midcap stocks closed in the green.
“The domestic market started the session with a strong surge, buoyed by positive global sentiment amidst Israel-Hamas ceasefire talks and diminishing US recession fears due to recent favourable data. Concurrently, easing geopolitical risks and weak China demand have led to a decline in crude prices, benefiting the domestic economy. Meanwhile, inflationary pressure in Japan and the appreciating Yen cautioned the rally. This week’s Japan inflation data and FOMC minutes will provide insights into future interest rate trajectories and market trends,” said Vinod Nair, Head of Research at Geojit Financial Services.
Markets close flat! Nifty below 24,600, Sensex holds 80,400 Markets rally! Nifty ends near 24,550, Sensex gains 1300; IT stocks shine Markets fall on recession fears in US; Nifty plunges over 200 points and the Sensex ends below 79,000; banks deep in the red Bloodbath on D-Street amid global sell-off! Nifty tests 24,000, Sensex falls 2,222 points
“The Nifty moved above 24,700 after sustaining above 24,600. The trend is likely to remain strong as long as it stays above the 24,600-24,650 range. A decisive fall below 24,600 might trigger a reversal of the current uptrend. On the higher end, the Nifty might move towards 24,840-24,860,” said Rupak De, Senior Technical Analyst at LKP Securities.
Bank Nifty
“The Bank Nifty was clearly an outperforming sector as compared to Nifty in today’s trading session. However, presently it is trading near the crucial resistance zone of 50,700-50,900 levels and we believe that BN would further outperform only if it is able to decisively close above this resistance zone or else a reversal from here could take the Nifty back to the support levels of 50,000. On the downside, the support zone lies at 50,350-400/50,000 while the resistance is seen at 50,700-900 / 51,100/51,800-52,000,” said Tejas Shah, Technical Research at JM Financial & BlinkX.