Decline in fresh Covid-19 cases in the country lifted investors sentiments as Indian markets gained over 1% for the second consecutive session on April 27. At close, the Sensex was up 557 points or 1.15% at 48,944, and the Nifty was up 168 points or 1.16% at 14,653.
In two days, the market capitalisation of BSE listed stocks has increased by Rs 4.22 lakh crore to Rs 206.59 lakh crore.
All the sectoral indices ended in the green with PSU bank and metal indices rising over 2% each, while BSE Midcap and Smallcap indices added 1% each.
Strong buying in industry heavyweights such as Reliance Industries, HDFC Bank, ICICI Bank, L&T, SBI, and TCS also helped the markets clock in gains. Larsen & Toubro was the top gainer of the day with a jump of 3.3% and closed at Rs 1,380.
HDFC Life, SBI Life, Kotak Mahindra Bank, Maruti Suzuki, and Nestle India declined up to 3.6% to end as top laggards.
More than 200 stocks including Tata Steel, SAIL, Divis Labs hit a fresh 52-week high on the BSE.
Market remained positive for the second day in a row. The benchmark index — Nifty/Sensex opened with a strong gap and quickly surpassed 14,550/ 48,600 mark, which is short-term resistance level.
The important point is, market not only crossed the resistance mark but even traded above 14,550/ 48,600 levels which is positive for the Nifty /Sensex.
Modest broader market participation and strong performance from metal, PSU banks and selective financial stocks helped traders to maintain a long stance over short.
Technically, the Nifty has held a level of 14,550 which suggest bulls are in total control.
Above 14,550 levels, we may see a pullback rally to continue up to 14,700-14,750. There is a possibility of a further upside that may continue to push the index upwards, till 14,800.
On the flip side, dismissal of 14550 could open one more leg of correction up to 14485 levels.
Nifty closed the day sharply higher and this was a conviction candle that has a wide trading range. Nifty has finally closed above the gap formed between April 16-19. This is a bullish development.
On the lower time frame charts there is a pattern of higher highs and higher lows. A sign of a change in trend.
Nifty is now below the resistance of falling trendline and minor high at 14,700-14,750. A breakout out 14,700-14,750 would mean a breakout of a falling wedge pattern. If this happens it will be a very bullish development. Current momentum needs to sustain and move beyond 14,700-14,750 for the rally to continue to 15,430 and higher. The support at 14,380 is important and any decline to this level could be a buying level. We are two more days to April expiry. The volatility could be high.