On Thursday, Indian stock markets witnessed a remarkable turnaround as both the Nifty and Sensex surged to new all-time highs, showcasing resilience despite earlier volatility. The Nifty closed at a record high level of 22,235.15, gaining 180.1 points, while the Sensex rose by 535.15 points to reach 73,158.24.
Earlier in the day, both indices opened marginally higher but showed signs of weakness, with a decline of about 0.8%. However, in the final two hours of trading, they reversed course, reflecting investor confidence and bullish sentiment.
The IT sector notably rebounded, with IT stocks jumping by 1.94% after experiencing a 2.8% decline over the previous three sessions.
The previous day, Wednesday, saw a stark contrast as the Nifty slipped into weakness from its new all-time high, closing lower due to profit booking. The Sensex dropped by 434.31 points, closing at 72,623.09, while the Nifty 50 settled at 22,055.05, down by 141.90 points or 0.64%.
Technical analysts are closely monitoring market patterns for potential indicators of future movements. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, highlighted the formation of a bearish engulfing pattern on the daily chart, suggesting a possible short-term reversal in the market's upward momentum.
Analysts also analyzed Nifty Open Interest (OI) data, noting significant OI levels at various strike prices. Mandar Bhojane, Research Analyst at Choice Broking, emphasized the highest OI on the call side at 22,200 and 22,300 strike prices, while on the put side, maximum OI was observed at the 21,800 strike price.
The banking sector, represented by the Bank Nifty index, witnessed profit booking on Wednesday, closing 75 points lower at 47,020. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, identified resistance around the 47,300 levels for the Bank Nifty index. He highlighted a broad range of 46,500 - 47,500 within which the index is currently trading, emphasizing the importance of breaching the 47,300 mark for further upside potential.
Despite short-term fluctuations, market participants remain optimistic about the overall trajectory of Indian equities, driven by robust investor sentiment and positive economic indicators.
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