Mumbai (Maharashtra) [India], December 23 (ANI): The Indian markets bounced back on Monday after consecutive selling in the last three trading sessions.
The Nifty 50 index surged 150 points, or 0.64 percent, to open at 23,738.20 points, while the BSE Sensex index surged more than 448 points to open at 78,490.19 points.
Experts noted that for the markets to rally, significant progress is needed on inflation, more rate cuts are required, and less turbulence from Trump 2.0 is necessary to see a sustained rally. However, the chances of a year-end rally are still present.
Ajay Bagga, Banking and Market Expert said “The US rally of Friday is supporting Asian equities this morning. The short term momentum is turning positive again and we may see a year-end rally over the remaining 7 working days of 2024. However, the broader trend remains challenging due to the US bond yields being persistently high”.
In the sectoral indices on the NSE, Nifty Metal opened as the highest gainer, while other indices also surged at the time of filing this report. Nifty IT gained 0.55 percent, while Nifty Media, Nifty FMCG, and Nifty Pharma also saw gains.
In the Nifty 50 list, 46 stocks opened in advance, while 2 stocks declined and 2 remained unchanged. The top openers of the day included JSW Steel, Hindalco, Shriram Finance, Trent, and HDFC Bank. The top losers at the opening were SBI Life, HDFC Life, Power Grid, and BEL.
“The support lies at 23400, which is the objective of the short-term head and shoulders top that was confirmed on 18th December. Under that, final support for bulls lies at the November 21 low of 23,263. The three-day momentum is under five and, therefore, deeply extended on the downside, so the likelihood of a rebound remains very high,” said Akshay Chinchalkar, Head of Research, Axis Securities.
Other major Asian markets also gained on Monday, with the Nikkei 225 index surging 0.88 percent, Taiwan’s Weighted Index rallying more than 2.55 percent, South Korea’s KOSPI up by 1.57 percent, Hang Seng gaining modestly at 0.36 percent, and the Jakarta Composite surging by 1.22 percent.
“The Nifty 50 experienced a sharp decline last week, falling by 4.77 per cent, the largest weekly drop this year. The index pulled back from the 24,800 mark, which now acts as strong resistance. 23,300 serves as a crucial support level, a breakdown below this level would strongly indicate a continuation of the downtrend” said Sunil Gurjar, SEBI Registered Research Analyst, Founder- Alphamojo Financial Services. (ANI)
