Momentum likely to continue, say experts
The market gained further with the Sensex and Nifty ended higher as the government announced a slew of policy initiatives.
Sentiment has been boosted as the government continued with its policy reforms like the Cabinet approved changes to the Insolvency and Bankruptcy bill, approved partial credit guarantee plan for PSBs to purchase assets of financially sound NBFCs and approved 100 per cent sale of loss making Air India.
The Sensex rose 169 points to close at 40581, while the Nifty climbed up half per cent or 61 points to close at 11972 while Nifty touched intra-day high of above 12000. Tata Motors, SBI, Tata Steel, Coal India, Vedanta, Kotak Bank, Yes Bank and Hindalco were major gainers among the Nifty stocks.
Moreover, dollar fell to 1-month low and oil price was stable which boosted the market sentiment. Among the global factors, US Fed on Wednesday deciding to leave interest rates unchanged for now, signaling no plans to cut in 2020 given strong growth in US economy. Metal stocks witnessed biggest gains followed by Banking, Auto, FMCG and Pharma stocks while Tech stocks witnessed profit booking. India CPI and IIP data will be announced post market today.
According to analysts, going forward, till the time Nifty holds above 11900 level, we may see continuation in up move towards 12035 and 12100 levels. On the flipside, strong support remains intact at 11900 and then 11800 levels.
'Technically, Nifty has negated the formation of lower highs - lower lows of last four sessions and supports are now shifting higher. The index formed a bullish candle on daily chart. The momentum oscillator RSI also turned northward and in verge of giving positive crossover with its average. Going forward, till the time Nifty holds above 11900 level, we may see continuation in up move towards 12035-12100 levels. On the flipside, strong support remains intact at 11900-11800 levels, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private Ltd.
'Markets extended their rebound and gained nearly half a percent amid mixed cues. Initially, buoyancy in the global markets triggered upbeat start, thanks to dovish commentary from the US Fed. It remained range bound in the first half thereafter but strong surge in the select index majors pushed the benchmark higher. Mostly sectoral indices participated in the move and the broader indices too gained some traction, Ajit Mishra, VP - Research, Religare Broking Ltd.