Sensex today finished about 600 points
higher at 32,200
Indian
stock markets posted strong gains for the second day in a row, lifted optimism
over reopening economies and a huge EU coronavirus recovery package. The Sensex
ended about 600 points higher at 32,200, extending 2-day gains to about 1,600
points. Investors bought beaten-down banking stocks for a second day, while
auto and metals gained on broader market optimism. The NSE Nifty 50 index ended
up 1.88% at 9,490.
The Nifty banking index,
which has fallen over 40% so far this year, ended up 2.5% today, following a 7%
surge in the previous session.
HDFC Bank Ltd and Housing
Development Finance Corp Ltd ended up 4.6% and 3.4%, respectively. Nifty sub
indexes auto and metals rose 3.65% and 2.4%, respectively.
Here
is what analysts said on today's market action:
Vinod
Nair, Head of Research at Geojit Financial Services.
"Indian markets are banking on continued resumption
of economic activities, inspite of still high number of new infections. Further
stimulus measures are also expected to boost demand in the economy and help the
most impacted sectors to recover. Market is rising on the back of expectations
while there has been little change in ground realities."
Shrikant
Chouhan, Executive Vice President, Equity Technical Research at Kotak
Securities
“A combination of factors such as optimism in global
markets and fresh financial packages from developed countries helped Indian
markets close on a strong note. Technically, on an immediate basis, the level
of 9550/9650 would be a major hurdle for the market and in the short term,
markets are approaching towards overbought status. The strategy should be to
buy on dips instead of chasing markets at higher levels. Support exists at 9400
and at 9300."
Sameet
Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
"Prior to yesterday’s session, we were significantly
underperforming our global peers. But finally our markets showed strength and
have witnessed a decent catch up move from the key support of 9000. Yesterday’s
massive rally was followed by yet another smart day of trade to conclude the
May contract at the highest point of the series (on a closing basis).
Nifty has now reached to our immediate target of 9450 -
9500, but the way charts are shaped up, we expect the Nifty to enter a downside
gap area of 9532-9731 created on May 04, 2020. On the flipside, 9380 followed
by 9250 would now be seen as a sacrosanct support.
As we have just alluded, last two day’s rally is clearly
propelled by the banking space and as we all know, whenever the banking
conglomerates starts participating in any rally, it is considered to be a
robust one. Hence, traders should look to use declines to go long and ideally
the stock centric approach would fetch better trading opportunities as well as
the higher potential gains."
Manish
Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
"The markets ended the monthly expiry of May on a
positive note, not giving up any of its gains which is a good indication of
what lies ahead. Every dip now becomes an opportunity to buy or go long. We
should expect levels closer to 9700 during the course of the June expiry. As
long as we can stay above the levels of 9000, we are in a medium-term bull
market."
