Thursday witnessed a market resurgence, rebounding from two consecutive days of negative trading, driven by robust monthly business updates from leading banks showcasing strong credit growth. Vinod Nair, Head of Research at Geojit Financial Services, highlighted this positive shift.
Closing on Thursday, the Sensex showed an impressive gain of 490.97 points, or 0.69%, reaching 71,847.57. Simultaneously, the Nifty climbed 141.30 points, or 0.66%, concluding at 21,658.60.
The realty sector emerged as the top gainer, fueled by expectations of heightened demand in the residential category. This sentiment was further supported by positive housing loans disbursement data released by banks.
Meanwhile, Asian markets engaged in profit-booking activities, influenced by indications from the US Federal Reserve minutes suggesting a temporary pause in interest rate changes, as noted by Vinod Nair.
Rupak De, Senior Technical Analyst at LKP Securities, interpreted the Nifty's rapid recovery after two bearish days as a sign of continued bullish dominance. He expressed optimism about the market trajectory, suggesting a potential move towards 21,800-21,850 for the Nifty. If it surpasses 21,850, a further climb towards 22,000 might be anticipated, according to De.
Highlighting a short-term support level around 21,500, De suggested that a downward shift would only be likely if the index falls below this mark. Until then, he deemed the market favorable for buyers to capitalize on dips.
(With Agency Inputs)
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