Sensex, Nifty end higher after sharp recovery in final hour
Mumbai, May 20
Indian benchmark equity indices recovered all intra-day losses in the final hour of trade to end Wednesday's session on a positive note, supported by gains in oil & gas and auto stocks.
The Nifty closed at 23,659, up 41 points, or 0.17 per cent. During the session, the index touched an intra-day high of 23,690.90 and a low of 23,397.30.
The Sensex also ended near the day's high at 75,318.39, gaining 117.54 points, or 0.16 per cent.
The 30-share index had fallen sharply during intra-day trade to touch a low of 74,529.41 before recovering strongly to hit a high of 75,406.18.
Commenting on Nifty technical outlook, experts said that fresh supply pressure emerged near higher levels, keeping the 23,700-23,800 zone as a key near-term resistance area.
"A sustained breakout above 23,800 could strengthen momentum further toward the psychological 24,000 mark," an analyst stated.
"On the downside, the 23,400 level now acts as an important immediate support zone, while the broader 23,300 region continues to remain a crucial support base for the index," a market expert mentioned.
Among the top gainers on the Nifty index were Hindalco Industries and Bajaj Auto, which supported the broader market recovery.
In the broader market segment, the Nifty MidCap ended 0.49 per cent higher, while the Nifty SmallCap rose 0.04 per cent.
Sectorally, the Nifty Oil & Gas and the Nifty Auto outperformed the market, aided by buying interest in energy and automobile counters.
On the other hand, the Nifty Media and the Nifty FMCG ended among the top laggards during the session.
Despite weak intra-day sentiment, strong buying in heavyweight stocks during the closing hour helped benchmark indices settle in the green, indicating resilience in domestic equities.
"Markets are now awaiting the US Fed's April policy minutes for further direction on the interest rate outlook. Overall, the broader trend remains range-bound with a negative bias, with sector and stock specific opportunities likely to dominate," an analyst stated.
— IANS
Reader Comments
Good to see Nifty holding above 23,600. The way it fell to 23,397 during the day, I thought we were in for a bloodbath. But Indian markets have this habit of bouncing back. Let's see what the US Fed minutes bring tomorrow.
Bajaj Auto and Hindalco leading the recovery - makes sense given the auto sales momentum and metal demand outlook. But I'm still cautious on FMCG, that sector has been underperforming for a while now. Not a good sign for rural demand.
As someone tracking global markets from Mumbai, this volatility is expected with Fed minutes coming out. But the resilience of Indian equities is impressive - we recovered from a 700-point Sensex fall to make a gain. Definitely not for the faint-hearted.
My portfolio is still in red despite this recovery. Midcaps and smallcaps are bleeding slowly. Maybe it's time to move some money to fixed deposits for safety. This range-bound market is frustrating for long-term investors. 🙄
A decent recovery but I'd exercise caution. The 23,800 resistance level mentioned in the article is critical - if we can't break that sustainably, this bounce might just be temporary. For now, I'm sitting on cash and waiting for better entry points.
A Aman W