There has been a surge in BSE Sensex as it climbed above the psychological 60,000 mark for the first time as it climbed 505 points or 0.84 percent to 60,134. Due to positive global cues, the markets are on a strong footing for second straight session with benchmark indices opening gap up on March 6.
Investors get wealthier by nearly Rs 6 lakh crore in two days
The Nifty50 also surged 138 points or 0.8 percent to 17,733 on top of a 1.5 percent rally seen in the previous session.
Global markets are also experiencing an upswing as Japan’s Nikkie and South Korea’s Kospi also gained over 1 percent each, while Australia’s ASX 200 gained 0.6 percent and Hong Kong’s Heng Seng also gained 0.2 percent , however China’s Shanghai Composite was down 0.2 percent.
Experts have stated that benchmark Nifty have formed a descent bullish candlestick pattern on the daily harts by sustaining its 200 day EMA (exponential earning average) of 17,583 for yet another session. However the Index needs to surpass the 50 day EMA which coincides with 100 day EMA (17,814) to get firm direction towards psychological 18,000 mark.
Sagar Doshi , the Head of Technical , Wealth Research at Nuvama Wealth and Investment stated,
“Looking at the technical patterns on long-term charts (monthly negative divergence) and signals coming from the yield curve (inversion of 80 percent), this Nifty up-move looks like a retracement for next fall,”
Further stated that the overall bounce till 17,800-18,000 is the maximum possible, however it does not seem to surpass the new high.
The upward movement or the rebound after significant correction and consolidation was quite sharp as investors’ wealth increased by Rs 5.67 lakh crore since March 3, as the BSE market capitalization jumped to Rs 265.66 lakh crore, up from Rs 259.99 lakh crore on March 2.
VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services
“The trend reversal in the Nifty led by banking and metals has more legs to go. When the market gets oversold, as happened in recent weeks, the bounce back triggered by short-covering can be sharp,”
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Banking stocks to gather momentum after taking cues from GCQ Investments
Also stated that the rally in Banking stocks may gather momentum taking cues from GCQ Investment in four Adani stocks
“The oversold IT stocks also have the potential to stage a mild rally. Oil and gas and capital goods segments appear strong,”
The Nifty Oil & Gas index, which increased by over 2 percent, is followed by other sectors that had gains of between 1 and 7 percent, including Mahanagar Gas, Adani Total Gas, Gujarat State Petronet, GAIL India, Indraprastha Gas, Oil India, ONGC, IOC, Reliance Industries, BPCL, and HPCL.
With a jump of 1.2 percent, the IT index was the second-highest gainer. Gains of 1% to 2% were reported by Mphasis, Infosys, Coforge, LTI Mindtree, TCS, and Wipro.
Adani Green Energy, Adani Wilmar, Adani Transmission, Adani Power, and Adani Enterprises all saw gains of 4% or more on Monday, contributing to the lifting of investor sentiment.
The Nifty Midcap 100 and Smallcap 100 indices rose 0.9 percent and 1.15 percent, respectively, on positive breadth, signalling activity in the broader markets. On the NSE, around seven shares climbed for every three shares that declined.
Although 170 stocks hovering on the lower circuit and 226 shares hitting the higher circuit, the majority of these stocks were from illiquid groupings and none were from the “A” Group, which exclusively has liquid companies.
Given the lack of recent domestic triggers, attention will be placed on global cues this week. The testimony of Fed Chair Jerome Powell and the US jobs report are key elements leading up to the FOMC meeting, which is planned for March 21–22.
The market is expected to remain rangebound in the upcoming months, and a significant uptrend could occur in the second half, depending on central banks’ cues, according to experts.
Unmesh Kulkarni , Managing Director , Senior Advisor and Head of Markets and Advisory Solutions at Julius Baer, India stated,
“CY23 is likely to be a year of two halves, with the markets expected to see some correction/consolidation in the first half, followed by some improvement as we progress in the second half,”
The likely continuation of the rate hike cycle in the US, a slowing global economy, tactical shifts in global flows away from India as a result of the country’s strong outperformance in CY22, which led to a much higher valuation premium than historical averages, and softening domestic demand, particularly given that rural demand is still weak and impair by inflation, are some of the major headwinds that Indian markets must deal with in the near term.
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