On Thursday, the stock market opened on a positive note, followed by the NDA unanimously announcing the third term of Prime Minister Narendra Modi, who will take oath as Prime Minister on Saturday.
The Nifty rose 105.65 points, starting the day at 22,726.00, while the Sensex rose 378.59 points, opening at 74,804.68.
As per ANI reports, 29 advanced while 21 declined among Nifty companies. LNTPC, SBI, ONGC, Coal India and Power Grid lead the pack of winners.
On the other hand, the companies that lost the most were Britannia, Nestle India, Cipla, Hindustan Unilever and Hindalco, as reported by ANI.
Highlighting the initial sell-off followed by a strong rally, Shrikant Chouhan, head of equity research at Kotak Securities, commented on the technical performance of the market. He said, “Technically, after a sell-off earlier in the day, Nifty and Sensex found support near 21,700/21,800 levels and recovered sharply, which is a positive sign. The market rallied 880/2600 points from the bottom. Furthermore, it also recovered the 22,500/74,000 levels or the 50-day SMA (simple moving average), which is also positive.”
Discussing the outlook for the Bank-Nifty index, Chouhan stated, “For the Bank-Nifty, it is also in an extended retracement mode, which could take the index towards 49,500 or 49,800 levels. There is support at the levels of 48,500, and a close below that may take the index to 48,000 again.”
Following Tuesday’s sharp drop, Chouhan further explained that the current state of the market is experiencing a prolonged pullback. “This pullback could extend up to 22,800 to 22,950 levels. Our broader strategic recommendation is to reduce long positions between these levels. If the Nifty sustains above 23,000, we could see some short covering in the market. On the downside , there are support levels at 22,400 and 22,300. A close below 22,300 would likely widen the consolidation range, possibly up to 22,000 or 21,800,” Chouhan said.
Overall, with technical indicators suggesting potential for further gains while highlighting key support and resistance levels that traders should pay attention to, ANI reports suggest, the strong market open reflects investor confidence following the electoral victory of the BJP.