Raging Bulls on D-St! Sensex Rallies 850 pts, Nifty Above 17,550; Why is Market Rising?

Strong global mood propelled domestic markets higher in Friday’s trade, led by gains across index-heavyweights like SBI, Reliance Industries, NTPC, HCL Technologies, Bharti Airtel, among others. The Nifty 50 index rose 253.60 points or 1.41 per cent to 17,575.50, while the S&P BSE Sensex surged 850.56 points or 1.43 per cent to 59,753.54, as of 11.44 am.

On reasons that fueled sentiments of global markets today, Sumeet Bagadia, Executive Director at Choice Broking said, “Sensex is bouncing back from its lows and the 30-stock index may become highly bullish if it manages to close above 59,500 levels. If Sensex closes above 59,500 levels on Friday, the we can expect this BSE index to touch 60,100 and 60,900 levels in near term. However, on the lower side, Sensex has strong support placed at 58,800 to 58,700 levels. Breaching this support should be assumed as more downside move in the index.”

“The US based investment firm GQG partners investing Rs 15446 crores in four Adani stocks might influence the market positively. This money is mainly to be used for retiring debt, which means that the banks that had funded Adani companies will not face any stress. This is positive news for Bank Nifty,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

However, the market will continue to be under pressure from FII selling which yesterday was Rs 2,676 crores excluding the GQG bulk buying of Adani stocks, Vijayakumar said.

Asked about the segments that may continue to fuel Sensex, Nifty and other benchmark indices, Ravi Singhal of GCL Broking said, “IT and banking sector is expected to outperform other sectors and one should try and add stocks from these sectors in expected rally on Dalal Street.” He said that one can buy shares of TCS and State Bank of India (SBI) for big upside in medium to long term time horizon.

Speaking on why Sensex today surged to the tune of 1.20 per cent, Ravi Singhal, CEO at GCL Broking said, “Sensex today surged to the tune of 1.20 per cent within an hour of stock market’s opening as sentiments have turned positive after US Fed officials comments to pause interest rate hike. As Sensex is in oversold condition after sell off pressure in last 10 sessions, this positive trigger has worked in favour of Sensex, Nifty and other key benchmark indices of Indian stock market. “

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