Benchmark indices NSE Nifty 50 and BSE Sensex ended Thursday’s session in the green. The Nifty 50 advanced 29.45 points or 0.15% to 19,413.75 and the Sensex gained 164.99 points or 0.25% to 65,558.89. In sectoral indices, Bank Nifty rose 0.06%, Nifty IT jumped 1.75%, Nifty Realty soared 1.02% while Nifty Auto fell 0.68%, Nifty Pharma tumbled 0.43%, Nifty PSU Bank tanked 2.38% and Nifty Oil & Gas plunged 1.17%. The top gainers on Nifty 50 were TCS, Hindalco, Infosys, Tech Mahindra and Bajaj FInserv while the losers were Power Grid, Coal India, UPL, Maruti Suzuki and BPCL.
“Today’s domestic rally was supported by the contra bet buying of the IT stocks which was supported by stable margins, new generation business opportunities and moderation of USD, as latest US inflation is fast approaching the Fed’s target levels. The broad market was trading positively at the all-time high level in anticipation of buoyant Q1 result and low volatility (VIX). However, a mixed start to bank earnings, coupled with ongoing concerns about domestic inflation, attracted bearish sentiment towards the latter half,” said Vinod Nair, Head of Research at Geojit Financial Services.
Bank Nifty may slip to 44500-44000 if it falls below 44700
“The bears continue to dominate the market, as the index was unable to surpass the level of 45000. This indicates a bearish sentiment in the index. On the other hand, the bulls managed to hold the support level of 44700, which suggests some buying interest at that level. However, a break below this support level may open the gates for further downside towards 44500-44000, which coincides with the 20-day moving average (20DMA). For the index to turn bullish, it needs to surpass the level of 45000 on a closing basis. This would indicate a potential shift in the market sentiment towards more bullishness,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.