Sensex, Nifty rebound strongly as IT stocks rally; Bajaj Auto jumps

The S&P BSE Sensex was up 464.95 points at 71,820.17 at 9:32 am, while the NSE Nifty50 rose 140.30 points to trade at 21,653.30. The broader market indices also opened the trading session with strong gains as volatility dipped.

Benchmark stock market indices rebounded strongly on Tuesday after falling sharply in the previous trading session. The strong recovery in the benchmark indices was supported by a rally in information technology (IT) stocks.

The S&P BSE Sensex was up 464.95 points at 71,820.17 at 9:32 am, while the NSE Nifty50 rose 140.30 points to trade at 21,653.30. The broader market indices also opened the trading session with strong gains as volatility dipped.

Most of the major sectoral indices registered a positive opening, but Nifty IT was the top gainer after leading a strong rebound.

The top five gainers on the Nifty50 were Adani Ports, Bajaj Auto, Wipro, LTIM and L&T. On the other hand, the top drags were Britannia, HDFC Life, Eicher Motors, Maruti and Bajaj Finance.

Bajaj Auto shares gained over 2.3 per cent in early trade, following an approval from its board for the proposed share buyback.

Ahead of today’s market opening, Aditya Gaggar, Director of Progressive Shares, said, “The markets witnessed a round of correction on 8th January and ended the session lower at 21,513. On the daily chart, the Index has formed a bearish engulfing pattern while an early indication from GIFT Nifty suggests a strong opening.”

“It will be a wait-and-watch condition in the opening 30-40 minutes (sustainability at a higher level will be a key factor). The immediate support stands at 21,465 while the upside seems to be capped at 21,650,” he noted.

Gaggar suggested that Metal and PSU Banking sectors are trading with a bearish divergence which indicates a short-term weakness. He, however, said “the undertone remains positive, and such correction will offer better entry points”.

“OMCs, Paints, and Tyre stocks will remain in focus as a correction in crude oil is positive for such Industries. Both Mid and Smallcap indices have given an early indication of a bearish divergence, post the confirmation, one can expect a correction in the short run,” Gaggar said.

Published By:
Koustav Das
Published On:
Jan 9, 2024