Indian equity benchmarks, the Nifty and the Sensex, closed significantly higher on Wednesday following a late-session rally, buoyed by favorable global cues and a notable drop in crude oil prices. The Nifty rose by 298.15 points to 24,330.95, while the Sensex surged by 940.73 points to 77,958.52.
Experts analyzing the Nifty’s technical outlook highlighted a strong market rebound, emphasizing the index’s closure above the immediate resistance level of 24,300. They noted a robust support zone around 24,000, coinciding with key moving averages, and pointed out a positive breakout from a symmetrical triangle pattern on the daily chart, suggesting a potential upward movement towards 24,500 levels.
The rally gained momentum in the latter part of the trading session, spurred by reports indicating progress in diplomatic discussions between the United States and Iran. Heavyweight stocks like InterGlobe Aviation, Tata Motors Passenger Vehicles, and Shriram Finance led the gains on the Nifty index, contributing to the overall positive sentiment in the broader markets.
In the sectoral landscape, banking and real estate stocks spearheaded the rally, with indices tracking PSU banks, private banks, and realty firms outperforming the market, driven by an improved risk appetite. Conversely, the FMCG sector underperformed, marking the day’s weakest segment.
Market experts attributed the strong performance of domestic equities to the significant drop in crude oil prices and optimism surrounding geopolitical tensions, which propelled the markets to close near the day’s peak. They advised a cautious investment approach considering prevailing input cost pressures and foreign exchange risks.
