Bullish surge: Stock market ends on high note
T
he Indian stock market maintained its upward momentum, closing in the green on Wednesday, with both the Sensex and Nifty posting notable gains.
The Sensex surged by 357.59 points, closing at 69,653.73, while the Nifty climbed 82.55 points, concluding at 20,937.65. The market displayed mixed trends among Nifty companies, with 29 advancing and 21 declining.
Wipro, LTIMindtree, ITC, LT, and TCS emerged as the top gainers among Nifty companies, contributing to the positive sentiment. On the flip side, Adani Enterprises, Eicher Motors, CIPLA, NTPC, and Axis Bank faced declines, reflecting a diverse performance across sectors.
Varun Aggarwal, founder and managing director of Profit Idea said, "India VIX at 12.80 levels. Volatility slightly rose which created momentum for the bulls to show strength at new price territory. On the weekly front, Maximum Call OI is at 21000 then a 20900 strike while Maximum Put OI is at 20,700 then a 20,500 strike. Call writing is seen at 21,000 then 21,200 strike while meaningful Put writing is seen at 20,800 then 20,700 strike. Option data suggests a broader trading range in between 20,500 to 21,200 zones while an immediate trading range in between 20,600 to 21,000 zones".
The Nifty index opened with a gap of 95 points and exhibited volatility at higher levels throughout the session. It achieved a fresh all-time high of 20,961.95.
Aggarwal said, "India set to become the third-largest economy by 2030: SandP Global Ratings - India will become the world's third-largest economy by 2030, a report released by SandP Global Ratings said on Tuesday. In 2026-27, India's gross domestic product (GDP) is expected to grow 7 per cent. India is currently the fifth largest economy in the world behind the US, China, Germany and Japan. In its 'Global Credit Outlook 2024, SandP said that India would be the fastest-growing emerging market in the world".
He added, "Still, its paramount test will be whether the country can become the next big global manufacturing hub. SandP said India is expected to grow at 6.4 per cent in 2023-24 as compared to 7.2 per cent in the previous financial year. The rating agency said the growth rate will remain at 6.4 per cent in 2024-25 before climbing to 6.9 per cent in the next and 7 per cent in 2026-27".
Investors should stay invested in this golden opportunity, he stressed.
Aggarwal stated, "We remain positive on petrochemical, IT, FMCG, Media, Metals, and Banking sector. Momentum shift will be great and many small, mid-cap stocks are available at good discounts despite the rally on the Index. Investors should stay invested in this golden opportunity. India remains the hot spot for investment and we will continue to see FIIs and DIIs pouring in money. Larger time frame, Nifty is very bullish. Don't get trapped by looking at Index value. Stay invested. We suggested that in spite of all odds, Nifty momentum remains bullish".
"Expect the market to hit 21234-21410 in the medium term. For the short term, we expect that around 21k, Nifty should face resistance and can retrace back a bit. RSI on a daily time frame is overbought and some correction should come before resuming further bull trend. In such a scenario, investors and traders should keep trailing stop loss or hedge their portfolios with bearish risk-defined strategies", Aggarwal stressed.
✔️ Bullish surge: Stock market ends on high note
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