Optimism over US-China trade negotiations helped the Indian stock indices to see a marginal high on the last trading session of this week, with both Sensex and Nifty rising about 1 per cent.
While the BSE Sensex ended at 81,721.08, up 769.08 points or 0.95 per cent, Nifty 50 at the National Stock Exchange (NSE) was at 24,853.15, up 243.45 points or 0.99 per cent.
During the beginning of the day, Nifty opened on a flat note at 24,639 and briefly dipped to a low of 24,614 before staging a sharp rebound to touch an intraday high of 24,909.
Sector-wise, Consumer Goods, IT, Consumption, Financial Services, and Banking stocks did well, while weakness persisted in the pharma and healthcare sectors.
Crediting the euphoric market sentiment to hopes of fruitful US-China trade negotiations following a mutual agreement between Washington and Beijing to maintain open lines of communication, technical and derivatives analyst Sundar Kewat of Ashika Institutional Equity said that gains, however, were capped due to concerns over foreign fund outflows amid rising US Treasury yields and a weakening US fiscal outlook.
With Nifty continuing its bullishness towards 25,200 level, Dr Praveen Dwarakanath, vice president of Hedged.in, said the index has immediate resistance at the 25,200 level and support at the 24,500 level.
“The index has taken support from its 20-day moving average and bounced from the day’s opening, indicating strength in the index. The Bollinger band shows an expansion, suggesting a possible rally in the index from the current level,” he added.
In the derivatives segment, 183 stocks advanced while 38 declined. Significant open interest build-up was noted in Solar Industries, Sun Pharma, Grasim, Angel One, and ABFRL stocks.
Despite the enthusiasm in the market, experts say that foreign fund outflows still impact the investor’s sentiment in the stock markets.
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