The Indian equity indices on Friday rebounded from their day’s low levels after Iran denied any retaliation by Israel. Sensex advanced 600 points or 0.83% to close the day’s trading at 73,088.33. The Nifty 50 closed 151 points or 0.69% higher at 22,147.00. The gainers included Bajaj Finance, M&M, Maruti Suzuki, HDFC Bank, and JSW Steel. The Indian Volatility Index (India VIX) closed 3.14% higher.
Nifty Bank closed the session 505 points higher at 47,574.15. Bucking the trend, the Nifty Midcap 100 lost almost 300 points or 0.61% to settle at 48,696.95.
On the sectoral front, bank and financial services stocks led the indices higher. In the broader indices, midcap stocks closed in the red.
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“On the daily chart, a piercing line pattern has formed, often indicating a bullish reversal following a correction. Additionally, the indicator has surpassed the 55EMA, a short-term moving average. A close above this moving average signifies a positive short-term trend. Looking ahead, bulls may drive the Nifty’s recovery towards 22,300. Furthermore, a decisive breakthrough above 22,300 could trigger a sustained rally towards 22,600. On the downside, support on a closing basis is situated at 22,000,” said Rupak De, Senior Technical Analyst at LKP Securities.
“Despite global weakness, Indian markets staged a strong recovery driven by large-cap stocks, buoyed by the expectation of limited prospects of escalation following Israel’s actions against Iran. However, fragility persists with elevated oil prices, posing inflation risks. Gold prices were rising on account of safe heaven demand. FIIs continued to remain risk-averse, a trend seen since last week. Global sentiment remains subdued due to a robust US economy and persistent inflation, dampening hopes of a near-term Fed rate cut. Mid & small caps saw weakness as Q4 earnings expectations remained muted,” said Vinod Nair, Head of Research at Geojit Financial Services.
