Indian equity indices started the month of April on a strong note, with Nifty ending above 22,650 points, supported by optimism around a potential de-escalation in US-Iran tensions.
At close, Sensex gained 1,186.77 points or 1.65 per cent to settle at 73,134.32. While the Nifty advanced 348 points or 1.56 per cent to 22,679.40. Broader markets outperformed, with the Nifty Midcap index rising 2.2 percent and the Small cap index climbing 3.4 percent.
According to the Bajaj Broking Market Commentary, sectorally, the rally was broad-based with all indices ending in the green except pharma, which declined 1 per cent. Defence led the gains with a surge of over 5 per cent, followed by capital goods, media and PSU banks, each up around 3 per cent. Auto, consumer durables, IT, metals, realty, FMCG, telecom and private banks posted gains in the range of 1-2 percent.
In terms of the Nifty outlook, the index formed a bearish candle with a higher high and a higher low highlighting pullback from oversold territory. The index, however, failed to sustain at higher levels and gave up some of its opening gains to close the session around 22,700 levels.
Going further, the volatility is likely to remain elevated in the near term, amid rising geopolitical tensions and higher crude oil prices, which continue to weigh on overall market sentiment.
Nifty after recent sharp decline has approached extreme oversold territory in the short-term chart so pullback cannot be ruled out. A move above Wednesday high (22,941) will open further upside towards 23,200 levels, the commentary outlined.
source:Tribune
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