Indian equity markets closed higher on Tuesday, with the Sensex rising more than 680 points and the Nifty settling above the 22,700 mark as reduced selling pressure provided some relief to investors.
The Sensex ended at 73,067.81, gaining 685.34 points or 0.95 per cent from its previous close of 72,382.47. The Nifty also finished in positive territory at 22,776.10, up 220.35 points or 0.98 per cent compared with its previous close of 22,555.75.
All broad market indices ended higher. Among sectoral indices, most closed with gains, led by Nifty Chemicals, which surged 1.98 per cent. The oil & gas, pharma, private bank, FMCG and healthcare indices also ended higher.
On the BSE, Trent, Kotak Bank, Hindustan Unilever, Reliance, Indi Go, Eternal, Asian Paint, Axis Bank, Bharti Airtel, Sun Pharma, LT and BEL were among the major gainers. Tech Mahindra, Titan, ITC, Infosys, TCS and M&M were among the stocks that ended as top drags.
On the NSE, Trent, BSE, Kotak Bank, Nestle, Hindustan Unilever, Reliance, Eternal, Asian Paint, SBI Life and Indi Go were among the key gainers. Coal India, Tech Mahindra, Max Health, TMPV, ITC, Bajaj Finance, Infosys, Titan and TCS were among the major losers.
Market analyst Vipin Dixena said the recovery was supported by buying in banks and financial stocks, while quarterly updates from Trent and Kotak Mahindra Bank added stock-specific momentum.
“Indian equity markets extended their recovery today. The buying was led by banks and financials, while strong quarterly updates from companies such as Trent and Kotak Mahindra Bank provided additional stock-specific momentum.”
"In my view, today's session is encouraging because the market has now managed to extend yesterday's rebound after a prolonged period of weakness," Dixena said, stressing, “However, I would still call this a relief recovery rather than a confirmed trend reversal.”
Dixena pointed out that Brent crude remaining near USD 100 a barrel, the rupee weakening to around Rs 96.4 against the dollar and continued selling by foreign investors could weigh on the sustainability of the market's recovery.
In the commodity market, Brent crude was trading at around USD 98.64 per barrel, while crude oil was trading at around USD 87.72 per barrel at the time of reporting.
Dixena identified the 22,550–22,500 range as an important immediate support zone for the Nifty, while 22,700–22,800 remains a key resistance area.
“From a technical perspective, 22,550–22,500 is now an important immediate support zone for Nifty, while 22,700–22,800 remains the key resistance area. A decisive breakout above 22,800 would strengthen the recovery and potentially open the way towards 23,000. On the downside, failure to hold 22,500 would indicate that the recent bounce is losing momentum. After the sharp September correction, I would therefore look for follow-through buying before becoming more constructive,” Dixena noted.
Ajit Mishra, SVP, Research, Religare Broking Limited, said the Nifty could face resistance in the 22,650–22,800 range, followed by the 23,000–23,200 zone. He said that while the recovery and oversold conditions were encouraging, the broader trend remained cautious.
“Going ahead, the 22,650–22,800 zone is likely to act as the immediate hurdle, followed by 23,000–23,200. Although the recent recovery is encouraging and the market remains oversold, the broader trend continues to remain cautious thus the current rebound should be approached selectively, with a preference for stock-specific opportunities rather than aggressive index-level exposure,” Ajit Mishra, SVP, Research, Religare Broking Limited, noted.