Indian benchmark indices opened higher on Thursday, buoyed by the BJP-led NDA’s unanimous announcement that Prime Minister Narendra Modi will lead a new coalition government for a third consecutive term.
The Sensex surged 378.59 points, opening at 74,804.68, while the Nifty gained 105.65 points, starting the day at 22,726.00.
Among the Nifty companies, 29 advanced while 21 declined. NTPC, SBI, ONGC, Coal India, and Power Grid were the top gainers, while Britannia, Hindustan Unilever, Cipla, Hindalco, and Nestle India were among the top losers.
“Technically, after a sell-off early in the day, Nifty and Sensex found support near 21,700/21,800 levels and rebounded sharply, which is a positive sign. The market rallied 880/2600 points from the day’s lowest point. Moreover, it also reclaimed the levels of 22,500/74,000 or the 50-day SMA (Simple Moving Average), which is also positive,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
“This pullback could extend up to 22,800-22,950 levels. Our broader strategy recommendation is to reduce long positions between these levels. If the Nifty stays above 23,000, we could see some short covering in the market. On the downside, support levels exist at 22,400 and 22,300. A close below 22,300 would likely extend the consolidation range, possibly up to 22,000 or 21,800,” he added.
(With input from agencies)