What happened with the Share Market Today

Equity benchmark Sensex climbed over 200 points to reclaim the 61,000 mark and Nifty ended above the 18200 level on account of strong buying interest in auto, financials, and metal stocks. Further, strong global markers along with favorable micro data boosted investors’ confidence.  There was the positive sentiment in the market on account of impressive quarterly results, the strong rupee against the US dollar, and persistent foreign capital inflows. In a highly volatile session, Sensex ended 235 points or 0.4 percent higher at 61,185 while it touched an intra-day high of 61,402 and a low of 60,714 during the session. Nifty soared by 86 points or 0.50 percent to end at 18,203 points. Nifty has touched an intra-day high of 18255 and a low of 18065. Britannia, SBI and Adani Enterprises, and BPCL were major gainers today among the Nifty stocks while Divi’s Labs, Asian Paints, Cipla, and Bajaj Finance are among the major losers. India Vix declined marginally to close a 1-year low at below 16.

Among the global markets, the US market gained over 1% and most of the Asian market soared 1-2% after announcing mixed economy data (strong Job data while poor unemployment data). There was some hope that the US Federal Reserve’s efforts to weaken the jobs market may be taking effect and may help lower the nation’s high inflation and expectation of China to partially remove the zero covid policy.

PSU Banking stocks witnessed the biggest gainer today after PSU Banking SBI and Bank of Baroda announced strong quarterly results. The Nifty PSU Bank Index climbed up by 4% to close to a 5-year high. Bank of Baroda surged by 10% to close at Rs158 and SBI advanced by 3.5% to close a record high at Rs614. Union Bank, Bank of India, Canara Bank, and Indian bank gained 4-6%.

Metal stocks surged (Nifty metal Index gained 1.5%) due to increased base metal prices on LME and the hope of improving global demand ahead of China’s likely to remove zero covid policy. SAIL, Jindal Steel, Tata Steel, and Hindalco gained between 2-4%.

Adani Enterprises, the flagship firm of billionaire Gautam Adani’s diversified conglomerate, rises 3.3% to close at 3,960, its highest since its trading debut in November 1994 after the company announced strong Q2 results. Britannia climbed up by 9% to close at Rs4139 after the company reported strong Q2 results. Divi’s Labs nosedived 9% to close at Rs332 as the company posted poor quarterly results

Technical Outlook:

The nifty index opened positive but failed to hold above 18255 zones and sank during the initial half of the day. However, it took support at 18064 and witnessed a pullback move in the last hour of the session. It formed a Doji sort of candle on the daily frame with a long lower wick indicating buying was seen at support zones. It closed with gains of around 90 points and has started forming higher highs – higher lows from the last two sessions. Now, it has to hold above 18200 zones, for an up move towards 18350 then 18500 zones whereas supports are placed at 18050 and 17950 zones.