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Equity markets exhibited bullish momentum for the third day in a row, with benchmarks gaining over 0.3 per cent, reflecting resilient bullish sentiment. While energy stocks powered the positive momentum, IT stocks limited the upward movement of the benchmarks.
Notwithstanding a muted start, BSE Sensex climbed 229.84 points, or 0.32 per cent to end at 71,336.80, and NSE Nifty gained 91.95 points or 0.43 per cent to close at 21,441.35. In the broader market, BSE MidCap gained 0.72 per cent and the Small-cap index 0.48 per cent while the BSE-500 ended 0.51 per cent higher.
Market breadth too remained positive, as advancing stocks outnumbered decliners. Of the 4,030 stocks traded on BSE, 2,292 advanced, 1,599 declined, and the remaining 139 stocks were unchanged at the end of the session. 327 stocks hit a 52-week high, and 25 stocks hit a 52-week low.
As year end is around the corner, investor participation is thin. Analysts expect the trend to continue, keeping the markets range-bound.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd., said while optimism in global markets drove key local indices higher, investor participation is likely to remain thin during the last week of the year. “This could see the markets turn range-bound with a mixed bias over the next few days,” he added.
Index movers
Within the Sensex pack, NTPC gained the most by 2.30 per cent, followed by Mahindra and Mahindra (1.65 per cent), Wipro (1.59 per cent) and Kotak Mahindra Bank (1.35 per cent).
On the other hand, Bajaj Finance (1.81 per cent), Bajaj Finserv (1.42 per cent), Infosys (1.12 per cent) and TCS (0.8 per cent) were the major laggards.
Infosys’ stock was under pressure as the company terminated $1.5-billion AI deal with a global client.
Sectoral indices
BSE Utilities was the top gainer with 1.56 per cent followed by BSE Oil and Gas (1.45 per cent), BSE Commodities (1.36 per cent) and BSE Energy (1.28 per cent). BSE Information Technology (0.52 per cent) and BSE TECK (0.37 per cent) were the only indices that ended in red.
Nifty outlook
According to Deven Mehata, Equity Research Analyst at Choice Broking, Nifty has a support around 21350-21220 zone.
“On the call side, the highest OI is observed at 22000, followed by 21500 strike prices, while on the put side, the highest OI is at 21300 strike price. On the other hand, Bank Nifty has support at 47500–47300 while resistance is placed at 48000 and 48220 levels,” he added.
Commenting on Nifty trends, Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty has a significant immediate resistance at 21,500, and the index has to breakout beyond this level to witness a substantial rally.
“Until then, the index is expected to remain within the range of 21,300 and 21,500,” he added.
Foreign institutional investors’ activity was rather muted, as they sold equities worth ₹95.20 crore, per exchange’s provisional data.
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