Amidst volatility Sensex gains 1% led by tech, heavyweight stocks

 Key benchmark stock indices on Thursday witnessed a volatile trading session with Sensex and Nifty-50 closing with a gain of 1%, led by technology and heavyweight stocks. 

After rollercoaster activity in which the Sensex moved 1,850 points and Nifty 562 points from the day’s low to the days high, Sensex closed at 81,766, up 810 points and Nifty at 24,708 points, up 241 points.

The markets rose on a day Prime Minister visited Mumbai to participate in the swearing-in ceremony of the BJP-led government in Maharashtra amid celebrations.

Among sectors, almost all major sectoral indices traded in the green, with the IT index outperformed and rallied over 2%. 

“A sell off from the highs curbed the gains. Broad market indices like BSE Mid Cap and Small Cap indices gained less, thereby underperforming the Sensex/Nifty. Market breadth was positive on the BSE/NSE,” said Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities. 

“The near term trend therefore remains up. Further upsides are likely once the immediate resistance of 24858 [Nifty] is taken out,” he added.

Shrikant Chouhan, Head Equity Research, Kotak Securities said, “We are of the view that the current market trend is bullish. For traders, the levels of 24,600/81500 and 24,500/81200 (for Nifty and Sensex respectively) would act as key support zones.” 

“As long as the market is trading above these levels, the bullish sentiment is likely to continue,” he added.

According to Ajit Mishra, SVP, Research, Religare Broking Ltd said, “The recent market surge has already factored in potential support from the RBI [policy decision], making the market’s reaction to Friday’s outcome crucial. While the IT and banking sectors continue to drive the index higher, broader sectoral participation will be essential for extending this rally.”