On the first day of the week, the Indian stock market started trading strongly and continued to trade in positive note on the back of a rally in global markets as bond markets settled down a bit after last week’s jump.
Markets were also trading positive as India is now out of a technical recession after witnessing two successive quarters of revised negative growth at 7.3% in the July-September period and a 24.4% decline in the first quarter of the financial year 2020-21 (FY21).
As expected, the Sensex opened at 49747.71 points with an initial correction against the previous close of 49099.99, with new takers buying from a low of 49440.46 points. The Sensex of the Indian stock market closed with an increase of 749.85 points and closed at 49849.84 points with an average movement of 617.96 points..!!!
On the BSE, the midcap index was up 1.46% and the smallcap index was up 1.61%. As far as various sectoral indices are concerned, only telecom stocks were seen selling on the BSE, while all other sectoral indices closed higher. Out of the total 3267 scrips traded on the BSE, the number of decliners was 1121 and the number of gainers was 1948. There was no change in the price of 198 shares. The only seller in 277 stocks was the bearish lower circuit while the only buyer in 396 stocks was the bullish upper circuit.
Nifty futures opened at 14709.95 points against the previous close of 14578.45, opening at a low of 14658.50 points. Nifty Future closed with an average movement of 180.95 points and a strong rise of around 241.05 points and around 14819.50 points..!!!
April Gold opened at Rs.46000, fell from a high of Rs. 46139 points to a low of Rs. 45811, with a rise of 202 points, a trend of around Rs.45938..!!
March Silver opened at Rs.68575, fell from a high of Rs. 68575 points to a low of Rs. 67763, with a rise of 979 points, a trend of around Rs.68240..!!
The Indian stock market has been in the overbought zone for a long time, but corona cases are declining and on the other hand, one positive news which has kept the market bullish. In addition, India’s Q3 GDP grew by 0.4% after witnessing a negative growth of 7.5% and 23.9% in Q2 and Q1 respectively of FY21 as economic activity limps back to normality after Covid-19 pandemic shock, which is also expected to keep sentiment positive. Healthy buying was observed in blue-chip stocks like HDFC, Kotak bank, Grasim and Larsen.
Sentiments were upbeat as the Indian equities continued to scale new highs post the Union Budget for FY22, the net foreign portfolio investments (FPI) into the Indian equities in February was Rs 25787 crore.
Foreign investments have continued to flow in post the Union Budget which announced further liberalization measures including privatization of banks and also did not come up with a new tax levy.
As far as Nifty future levels are concerned, 14808 – 14878 continues to be a key resistance zone; whereas on the lower side, crucial support base shifts at 14770 – 14707 now. A move below this support zone would result in an extended correction.