Indian equity markets opened on a strong note on Wednesday, with the benchmark Sensex and Nifty posting significant gains amid easing crude oil prices and improving sentiment towards domestic IT stocks
MUMBAI — Indian equity markets opened on a strong note on Wednesday, with the benchmark Sensex and Nifty posting significant gains amid easing crude oil prices and improving sentiment towards domestic IT stocks.
The positive momentum came as losses in global chip stocks showed signs of recovery, lifting the outlook for the technology sector.
As of 9:23 AM, the Sensex had jumped 1,167.85 points, or 1.44 per cent, to 82,274.50. Meanwhile, the Nifty advanced 307.95 points, or 1.23 per cent, to trade at 25,352.60.
Commenting on Nifty technical outlook, experts said that the index continues to hold a positive technical structure, although RSI at 77.88 indicates overbought conditions and the possibility of consolidation.
"Put writing around 25,000 provides support, while Call writing at 25,100–25,200 may cap immediate gains. Immediate support is placed at 25,000–25,150, while resistance is seen at 25,450–25,500," analysts stated.
InterGlobe Aviation, Mahindra & Mahindra and State Bank of India (SBI) emerged as the top gainers in the Nifty index, leading the broader market rally.
The positive sentiment was also reflected in the broader markets, with the Nifty MidCap index rising 0.68 per cent, while the Nifty SmallCap index gained 1.32 per cent.
Among sectoral indices, the Nifty PSU Bank emerged as the biggest gainer, indicating strong buying interest in public sector banking stocks.
On the other hand, the Nifty Pharma index was the biggest sectoral laggard, trading in negative territory.
"Given the new favourable environment for the Indian market, FIIs are likely to continue buying, imparting resilience to the frontline stocks in banking/financials, telecom, capital goods, select auto and pharmaceutical majors. This rally, which has more steam left, will be led again by large-caps," according to the market experts.