After two days of decline, equity benchmarks rallied on positive global cues though there was no significant change in the stand off between US and China in the ongoing trade war. Sensex and Nifty saw a gradual rise after a gap-up opening and peaked towards the close of the trading session. The Sensex gained 260.59 points, or 0.74 per cent, to settle at 35,547.33. The Nifty 50 gained 61.60 points, or 0.58 per cent, to settle at 10,772.05.
After several days of decline in the mid-cap and small-cap indices, there was a minor gain seen in them on Wednesday with the BSE Mid-Cap Index up 0.23 per cent and the Small-Cap Index up 0.27 per cent. The market breadth was even, with 1,317 stocks advancing against 1,311 declining on the BSE.
Gaurav Ratnaparkhi, senior technical analyst, Sharekhan by BNP Paribas said: “The Nifty witnessed a gap up opening and ended the trading session on a positive note. The index found support at the lower end of the channel and bounced back. The index has closed around the resistance zone of 10,775–10,785 in the trading session. If it breaks the resistance zone then the pullback can extend higher towards 10,834 where next major resistance for the index lies. On the way down, an immediate support is at 10,701 below which the index can drift lower towards 10,550–10,417. Overall, short-term chart structure of the index is bearish. We maintain our bearish outlook on the index for the short-term with a reversal placed at 10,930.
Mustafa Nadeem, CEO, Epic Research said: "The Nifty is likely to hold its support of 10,700 and see upward move to 10,850–10,900 in coming days while June series may see momentum stretched to 10,950.
“The momentum was seen getting back in specifically those sectors which were holding back the momentum and were seen as laggards. Financials and Nifty Bank added much of the positive sentiment for the market to retain above 10,750. The Nifty Bank closed near the upside of its trading range adding more than a percentage while financials also up by same. Private banks have seen buying picking up while Realty, Metal participated in this move.”
—Ravi Ranjan Prasad