Post Market Analysis of Equity Sensex

The equity benchmark Index ended at a fresh all-time peak amid a smart recovery in the Asian markets as well as the benefit of soft oil prices and continued foreign funds inflow. FMCG and Metal stocks were major gainers today. Sensex soared 177 points or 0.3% to close to a fresh high of 62682. During the day, it jumped 383 points or 0.60 percent to its lifetime intra-day peak of 62,887. Nifty advanced 550 points or 0.30 percent to end at 18,618.05, its fresh record closing high while it has crossed its previous high level at 18604. Nifty gained advance weakness today as a rally attributed to FMCG stocks of 62,681.84; Nifty settles at a lifetime high of 18,618 while touching an intra-day high of 18678.

Asian markets recovered smartly from the intra-day low on the back of speculation of China to relax its Covid restrictions after weekend protests. Both Hong Kong and China Index climbed up by 5% and 3% respectively. European market and US Future have gained modestly. On the domestic front, Favorable government policy, FIIs buying interest, and an 11-month low oil price have supported market sentiment.

FMCG stocks were top gainers today and Nifty FMCG surged by 2%. Attractive valuation and hope of improving rural demand lifted FMCG stocks. Hindustan Unilever gained 4% to close at Rs2634. Both Dabur India and Emami climbed up over 6% each. Marico, Britannia, Colgate, and Godrej Consumers gained between 1-3%.

Metal stocks witnessed fresh buying in hope of improving global demand. Nifty metal Index gained by 1%. JSW Steel gained 2% to close at Rs733. JSW Steel, Tata Steel, Nalco, Hindalco, and SAIL gained 1-2%. Select PSU Banks witnessed fresh buying. Union Bank gained 3% to close a 52-week high of Rs82. Bank of India soared by 3% to close at Rs84. Among the private bank, Bandhan Bank gained 4% to close at Rs234, and ICICI Bank advanced 1% to close at Rs947. ICICI Bank has launched a new digital-lending platform called ‘iLens’, which is developed by TCS.

Technical Outlook:

The nifty index opened flat to negative but managed to hold its opening levels and made a new lifetime high of 18678 levels. It witnessed positive momentum in early trades but then remained consolidative with a lackluster move within a range of 40-60 points. It formed a Bullish Belt-hold candle on the daily scale as it made the same open low and closed higher on a positive note with gains of around 55 points. It has been making higher highs from the last five sessions and supports are gradually shifting higher. Now, it has to hold above 18500 zones, for an up move towards 18700 then 18881 zones whereas supports are placed at 18442 and 18350 zones.