Indian stock markets today extended Friday’s big gains with Sensex jumping as much as 300 points to 50,855 at day’s high while Nifty rose to 15,251. Banking stocks led the gains as heavyweight State Bank of India (SBI) continued to climb. Fresh covid cases dipped to 2,22,315, the lowest in over a month while the total death toll crossed the 3-lakh mark, according to the latest Union Health Ministry.
“The Nifty has powered up today and we should expect the index to head towards 15300 as the next target. Any dip or intraday correction can be used to enter long positions for higher levels. The support has been upgraded to 15000 and as long as this level holds, any fall can be utilized to accumulate, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Covid-19 data has been a major determinant of market moves for some time now. Steady decline in fresh Covid cases and rising recoveries indicate that the second wave is weakening. Consequently, progressive lifting of lockdowns, like what Madhya Pradesh has announced from June 1st onwards, are expected in other states too. Market has been anticipating this trend and moving up and Nifty is now just 2% away from all-time highs. A move towards all-time high is likely.”
He added: SBI’s sterling numbers further reinforce the view that NPA concerns have been exaggerated. Bank Nifty now has the strength to support Nifty’s further upmoves. IT is likely to take a breather since rupee is strengthening.”
At 12:05 pm, Indian markets had trimmed some early gains and Sensex was up about 150 points while Nifty traded at 14,200. Among the gainers, SBI, L&T, Maruti, PowerGrid, HDFC were up between 1% and 2%. Among the losers, IndusInd Bank, and UltraTech Cement were down over 1%.
Never miss a story! Stay connected and informed with Mint.
our App Now!!