The market snapped two-day losing spree with the S&P BSE Sensex gaining 207.10 points, or 0.55 per cent, to end at 37,852. The Nifty 50 Index rose 79.35 points, or 0.70 per cent, to close at 11,435.10.
The broad market also witnessed strong buying with the BSE Mid-Cap Index rising 0.89 per cent and the Small-cap Index up 0.53 per cent. Domestic market will remain shut today on account of Independence Day.
Sameet Chavan, chief analyst, technical and derivatives, Angel Broking, said: “Last two day’s price action has been the replica of what we witnessed on August 2-3. Monday’s correction was followed by a gap up opening and then a sustained buying throughout the remaining part to reclaim the 11,400 mark with an authority.
“With Tuesday’s move, Monday’s low of 11,340 has now earned tremendous respect and hence, going ahead, as long as this level is defended, a possibility of seeing new high cannot be ruled out. For the coming day, 11,478 followed by 11,495 would be seen as immediate resistances; whereas 11,370 and 11,340 has now become a key support zone. We did witness a good broad based rally on Tuesday and this was certainly an encouraging sign for the market. We reiterate that the market is in a strong trend and hence, one should not get carried away by such in between hiccups.”
Jayant Manglik, president, Religare Broking, said: “The benchmark indices staged a smart comeback, recouping its losses from Monday’s session with the Nifty Index ending 0.7 per cent higher to close at 10,431. The broader market indices exhibited mixed trend with BSE Mid-cap outperforming the benchmark with gains of 1 per cent, whereas BSE Small-cap performed largely in line with the benchmark. In the near term, markets could remain volatile on the back of mounting currency crisis in Turkey, which has raised fears about a possible contagion into other markets. Further, developments on US-China trade war, currency and crude oil price movement would also be actively tracked. On the domestic front, earnings outcome of companies would be keenly watched by the investors. We expect volatility to remain high and would advise traders to hedge their risky leveraged positions.”