Business Desk – Share Market Rally: Amidst the rise in Asian markets, buying was seen in the domestic stock market today. Sensex rose 492 points intra-day to 74,787, while Nifty 50 touched 23,410. However, there is pressure in the broader market.
A decline is being seen in Nifty Midcap 100 and Nifty Smallcap 100. At 11 am, Sensex was trading at 74,697.86 with a gain of 402.90 points or 0.54% and Nifty 50 was trading at 23,386.80 with a gain of 40.40 points or 0.17%.
Market supported by softening of crude oil
Crude oil prices softened amid hopes of recovery in shipments from Saudi Arabia. Global oil benchmark Brent crude fell more than 2% to around $101 a barrel. This supported the market sentiment.
purchases by foreign investors
After net selling for seven consecutive trading sessions, foreign investors i.e. FII/FPI were net buyers on Friday. He made a net purchase of shares worth Rs 599 crore. Domestic institutional investors i.e. DIIs also remained buyers and bought shares worth more than Rs 1,000 crore.
Value buying at lower levels
Last trading week, Nifty and Sensex weakened for the sixth consecutive week. This was their longest weekly decline in nearly six years. After continuous decline, buying at lower levels supported the market.
Shopping in Pharma and FMCG
Today the market also got strong support from the pharma and FMCG sectors. Nifty indices of both the sectors strengthened by about 1%. Buying in these sectors helped push the major indexes higher.
Technical Outlook of Nifty
According to Anand James, Chief Market Strategist of Geojit Investments, last week Nifty has reached near the target of 23,400. In such a situation, consolidation may be seen in the market in the short term.
According to him, if Nifty handles the level of 23,280-23,260 then it can go to 23,560 and above. At the same time, if the level of 23,116 is broken, there is a risk of Nifty falling to 22,600-21,800.
