Benchmark indices ended Monday's session on a higher note, rising to test a four-month high. Nifty50 closed above the crucial level of 17500.
On Monday, the 50-stock index ended 0.7 percent higher at 17525.10 and Sensex closed at 58853.07, up 0.8 percent.
Gains in technology and financial services stocks offset the losses in oil and gas, and automobile shares.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said despite a small blip in early trades, bulls quickly rejuvenated and maintained their stranglehold even as other Asian peers ended mixed.
“FIIs, which were missing from the action over the past few months, have once again started taking exposure to local equities, thus providing a major impetus to the markets,” he said.
Technically, after a muted opening, the market successfully cleared the short term resistance of 17500 which is broadly positive. Further, bullish candle on daily charts and intraday breakout formation is indicating a further uptrend from the current levels, Chouhan said.
“For benchmark Nifty, the key support level is 17400 and above which, the breakout formation is likely to continue till 17650-17700. On the other hand, below 17400, the index could slip till 17325-17300,” he elaborated.
Stock Reactions
Shares of FSN E-Commerce Ventures
(Nykaa) rose over 4 percent after the company reported a strong set of quarterly numbers for the quarter ended June with consumer demand recovering.
Zomato's scrip rose about 3 percent as investors bought shares of the food delivery platform after the stock’s weightage in FTSE indices was increased.
Here's how Rupee performed
Global Markets
A strong US jobs report last week bolstered the case for more super-sized interest rate hikes, while the dollar weakened and government bond yields fell.
MSCI’s broadest gauge of Asia Pacific ex-Japan was down 0.6 percent whereas key indices in Europe were in the positive territory.
S&P futures were up 0.2 percent hinting at a higher start for US equities.
