There was a tremendous rise in the stock market on Wednesday, in which all the major indexes closed with strong gains. The Sensex closed at 78,111, up 1,263.7 points (or 1.64%), while the Nifty 50 rose 388.6 points to 24,231. Banking shares also showed strength, with Nifty Bank rising 696.9 points to close at 56,302. Meanwhile, the broader market was even more bullish; Nifty Midcap Select jumped 2.13% to 13,552.6, and Nifty Smallcap rose 2.35% to 17,156.
Which sectors saw the maximum growth?
In terms of sectoral indices, Nifty Capital Market, Nifty IT, Nifty Realty and Nifty Metal indices witnessed strong buying, keeping the overall market sentiment positive.
Which stocks rose and which fell?
Today, the market saw a particularly strong rally in infrastructure stocks, with investors buying heavily in stocks like Groww, Dam Capital, Angel One and 360 One. Among the stocks affected by the news, HG Infra, RailTel, Cyient Ltd and ICICI Pru AMC were in discussion, and there was a lot of volatility in their prices.
Defense sector also shone today, with stocks like MTAR Tech, DCX Systems, Paras Defense and Walchandnagar registering strong gains. Among the top gainers in the infrastructure sector, Afcons Infra, Ashoka Buildcon, HCC and PNC Infra gave excellent returns to investors.
Talking about the stocks which gained the most, Awfis Space, Deepak Fert, PG Electroplast and Enviro Infra saw tremendous growth. In contrast, stocks like Just Dial, Indus Towers, CCL Products and Oil India declined and were among the biggest losers of the day.
Editor’s Take of Anil Singhvi:
Why the slowdown after a strong start?
– Market is trading in a narrow range after gap-up opening
– Nifty is trading in a range of around 100 points
– The range for Bank Nifty—which spans 700 points—is slightly wider
– The market is waiting for new triggers
– A positive sign: No major decline seen in the market after the gap-up opening
Is this a ‘Buy on Dips’ market?
– Nifty is getting strong support in 23850–24050 zone; Bank Nifty at 55600–55900
– Continue ‘Buy on Dips’ strategy until Nifty closes below 23450 and Bank Nifty closes below 54100.
– Nifty is getting some resistance at 24300
– Once Nifty crosses 24300, the next target will be in the range of 24450–24550
– Nifty’s 50-Day Moving Average (DMA) is around 24450.
– A move around 24550 would indicate completion of about three-fourths of the recovery from the recent decline
– The next big target—the confluence of the 100-DMA and 200-DMA—is near 25175.
– The recent phase of weakness started exactly from the level of 25178.
– For Bank Nifty, the target of two-thirds recovery was achieved today at the level of 56500.
– Bank Nifty is getting some resistance around 56800.
– Above 56800, the next target—which includes both 50-DMA and 200-DMA—is around 57300