The market made strong gains on the back of positive global cues. Reliance Industries, HDFC and HDFC Bank surged, taking the Sensex and Nifty higher. The Sensex gained 282.48 points, or 0.78 per cent, to settle at 36,548.41, while the Nifty 50 Index gained 74.90 points, or 0.68 per cent, to settle at all-time high of 11,023.20. The sentiments were boosted by an overnight slump in crude oil prices and positive global stocks. Broader market declined with the BSE Mid-Cap Index falling 0.52 per cent and the Small-Cap Index falling 0.06 per cent. Both these indices underperformed the Sensex.
Sameet Chavan, chief analyst-technical and derivatives, Angel Broking, said: “It seems our market has finally picked up some momentum after coming out of a long slumber of nearly four weeks. The development triggered some strong buying in the initial hours. But in the latter half we did not see any decent profit booking to pare down nearly half a per cent gains.
“The recent optimism has been on expected lines and importantly, the kind of profit booking that we saw from Thursday’s high indicates that we may not have a smoother ride ahead. All the stocks may not have a unidirectional move. There were handful of stocks that corrected by a fair margin and hence, we reiterate that one needs to be very selective while picking up a stock. Although, profit booking slightly damaged the sturdy structure of daily candle, there is no conclusive sign of weakness yet. For the coming session, 11,078 followed by 11,100 would be seen as immediate resistances; whereas on the downside, the gap area of 11,000–10,976 is likely to act as intraday support zone. Avoid aggressive bets on index as we may expect some choppy moves ahead and hence, one needs to keep concentrating on stocks in order to get better trading opportunities.”
Vinod Nair, head of research, Geojit Financial Services, said: “Market maintained its upward streak in expectation of earnings growth and decline in oil prices. Besides, the prospects of trade talks between US & China influenced global peers to rebound after the recent sell off. Oil price declined to recent low while rupee appreciated easing the concern of an expected rise in June CPI inflation to 5.29 per cent."