The stock market kicked off positively on Thursday, propelled by the NDA’s announcement of PM Narendra Modi’s third term, set to begin with his oath-taking ceremony on Saturday. The Sensex surged by 378.59 points, starting at 74,804.68, while the Nifty climbed by 105.65 points, commencing the day at 22,726.00. Notable gainers among the Nifty companies included NTPC, SBI, ONGC, Coal India, and Power Grid, whereas Britannia, Hindustan Unilever, Cipla, Hindalco, and Nestle India were among the top losers.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, analyzed the market’s technical performance, observing an initial sell-off followed by a robust rebound. He remarked, “After an early sell-off, Nifty and Sensex found support near 21,700/21,800 levels and bounced back strongly, signaling positivity. The market rallied 880/2600 points from its lowest point of the day, reclaiming the 22,500/74,000 levels or the 50-day SMA (Simple Moving Average), which is also encouraging.”
Chouhan elaborated that the market is currently in an extended pullback phase after Tuesday’s steep decline, suggesting a potential extension up to levels between 22,800 and 22,950. He advised reducing long positions within this range, with a possibility of short covering if the Nifty remains above 23,000. Support levels at 22,400 and 22,300 were highlighted, with a close below 22,300 potentially extending consolidation to 22,000 or 21,800.
Regarding the Bank-Nifty index, Chouhan noted its extended pullback phase, possibly pushing it to levels between 49,500 and 49,800. He identified support at 48,500, suggesting that a close below this level might lead to a retreat to 48,000. Overall, the market’s strong opening reflects investor confidence following the BJP’s electoral victory, with technical indicators indicating potential for further gains and highlighting crucial support and resistance levels for traders to monitor.