Benchmark Nifty- 50 Index closed the volatile trading session on Thursday with a gain of nearly 1% at 24,708.40 ahead of RBI Policy outcome today. S&P BSE Sensex also closed at 81,765.86 with 1% gain. Nifty Bank closed with a gain of 0.66% at 53,603.55, and IT, Auto index stood among other key gainers. Broader markets were positive, with sustained buying in midcap and smallcap segments.
With the Nifty reclaiming 24,700—a level targeted after the breakout above 24,350—its sustenance could pave the way for a move towards 25,100, says Ajit Mishra – SVP, Research, Religare Broking Ltd who emphasized the importance of focusing on stock selection.
Bank Nifty also saw a continuation of positive price action. Divergence is visible on the hourly momentum indicator however price confirmation is not there as yet and hence we will keep riding the upside move toward 54460, added Jatin Gedia-Technical Research Analyst at Mirae Asset.
Market volatility on Thursday was primarily sparked by uncertainty about the policy meeting of the MPC and by RBI’s focus on measures to build liquidity, owing to the decline in growth. Indian equities mounted a strong comeback during the day, aided by strong buys in most of the heavyweight stocks across industries with positive market sentiments. FII support boosted the upward motion as the FIIs came in as net buyers, providing more than ₹5,000 for the past couple of sessions. While markets can have a pretty volatile start to Friday, we are expected for it to continue on its upside curve overall, Siddhartha Khemka, research and Wealth Management, Motilal Oswal Financial Services said.