06 June,2024 12:15 PM IST | Mumbai | mid-day online correspondent
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On Thursday, the stock market opened on a positive note, followed by NDA unanimously announcing PM Narendra Modi's third term, to take oath as prime minister on Saturday.
The Nifty rose by 105.65 points, starting the day at 22,726.00, while the Sensex surged by 378.59 points, opening at 74,804.68.
According to the reports from ANI, 29 advanced while 21 declined among the Nifty companies. LNTPC, SBI, ONGC, Coal India, and Power Grid lead the pack of gainers.
On the other hand, the companies among the top losers were Britannia, Nestle India, Cipla, Hindustan Unilever and Hindalco, as reported by ANI.
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Noting the early sell-off followed by a sharp rebound, Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented on the market's technical performance. He said, "Technically, after a sell-off early in the day, Nifty and Sensex found support near 21,700/21,800 levels and rebounded sharply, which is a positive sign. The market rallied 880/2600 points from the day's lowest point. Moreover, it also reclaimed the levels of 22,500/74,000 or the 50-day SMA (Simple Moving Average), which is also positive."
While discussing the outlook for the Bank-Nifty index Chouhan stated, "For the Bank-Nifty, it is also in an extended pullback mode, which could push the index to 49,500 or 49,800 levels. There is support at 48,500 levels, and a close below that may push the index to 48,000 again."
Following Tuesday's steep decline, Chouhan further explained the market's current state as undergoing an extended pullback. "This pullback could extend up to 22,800 to 22,950 levels. Our broader strategy recommendation is to reduce long positions between these levels. If the Nifty stays above 23,000, we could see some short covering in the market. On the downside, support levels exist at 22,400 and 22,300. A close below 22,300 would likely extend the consolidation range, possibly up to 22,000 or 21,800," Chouhan said.
Overall, with technical indicators suggesting potential for further gains while highlighting key support and resistance levels for traders to watch, the reports from ANI suggests, the market's strong opening reflects investor confidence in the wake of the BJP's electoral victory.
