In the latest trading session, key stock market benchmarks achieved notable gains, marking the third consecutive day of record increases. This upward trend was primarily propelled by a surge in the values of IT and oil & gas stocks.
As the closing bell rang, the S&P BSE Sensex recorded an increase of 357.59 points, reaching 69,653.73. Simultaneously, the NSE Nifty 50 settled 82.60 points higher at 20,937.70.
This positive momentum has positioned both benchmark indices on the cusp of attaining new milestones in the upcoming sessions, provided the ongoing bullish trend persists. However, it's worth noting that the broader market indices did not witness a comparable rise, and there was a slight increase in volatility during the session.
Among the sectoral indices, Nifty IT emerged as a leading gainer with a rise of 1.69%, closely followed by Nifty Oil & Gas, which registered a 1.49% increase. On the contrary, banking and financial services indices concluded the session in negative territory.
The Nifty 50's top gainers included Wipro, LTIM, ITC, LT, and TCS, while Adani Enterprises, Eicher Motors, Cipla, NTPC, and Axis Bank acted as the primary drags on the 50-share index.
Deven Mehata, a research analyst at Choice Broking, observed, “Today, Nifty experienced a gap-up opening and exhibited volatility throughout the session. Ultimately, it closed positively near its all-time high. In contrast, Bank Nifty, on the weekly expiry, concluded the day near its lowest level at 46834.55.”
Aditya Gaggar, Director of Progressive Shares, highlighted, “Index-based buying continued for yet another trading session under the leadership of the Tech stocks. In the mid-session, profit booking in banking as well as several other stocks had put pressure on the Index to trade lower but late buying in the metal and select heavyweights helped to recover and end the session at 20,937.70 with gains of 82.60 points.”
He further commented on the current market dynamics, noting that the ongoing rally seems fragile as mid and small-caps continue to underperform. Pointing out a potential trend reversal, he mentioned the DragonFly DOJI candlestick pattern formed by Nifty50 at record levels, indicating a possible reversal. He suggested that a close below the day's low could confirm a reversal, while the psychological resistance level of 21,000 should be monitored on the upside.
