India’s main stock indexes scaled new highs for the second day in the row as euphoria about Pfizer’s coronavirus vaccine raised hopes for a global economic recovery. Led by a rally among banking and financial stocks, the NSE Nifty 50 index today rose 1.36% to 12,631 while BSE Sensex ended 680 points higher at 43,277. Including today’s gains, Sensex has now risen for seventh day in a row, extending the surge to 3,660 points in seven sessions.
Global markets were mostly higher today after Pfizer Inc said on Monday its experimental COVID-19 vaccine showed over 90% effectiveness based on initial trial results.
Shares of IndiGo-owner InterGlobe Aviation rose 9%, while those of hotel operators Indian Hotels and Lemon Tree rose 14% and nearly 10%, respectively.
Among other sectors, the Nifty Bank index ended 3.9% higher and the financials index climbed 4.1%. Both indexes recorded gains for a seventh straight session.
Bajaj Finance gained 8.9% to top the gainers among the Nifty. The country’s top lender, State Bank of India , rose 5.6% and IndusInd Bank added 7.7%.
Construction-to-software conglomerate Larsen and Toubro rose about 7%.
The Nifty pharma index fell 4.33%, dragged down by losses in drugmaker Cipla, which fell 5.4%. The Nifty IT index fell 3.9%.
Ajit Mishra, VP – Research, Religare Broking Ltd
“Nifty is not showing any sign of slowing down and may take a breather around 12,800. Needless to say, the recent surge was largely driven by banking and financials while others are contributing selectively. Traders should align their positions accordingly and use dips to accumulate stocks that are participating in the rally.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“We observe a clear upside breakout as per weekly and monthly chart. The long term chart pattern on the monthly chart indicate further upside potential of 12800 for the Nifty in the near term. The short term trend of Nifty continues to be positive. There is no indication of any reversal pattern at the highs. The next upside levels to be watched around 12800 for the next few sessions. Immediate support is now placed at 12550.”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
“We almost hit 12650 on the Nifty; if we are able to sustain the levels of 12650-12700, the index can move to 13000 levels. Hence 12700 might pose a resistance and some profit booking can be considered at these levels and thereafter a buy on dips strategy can be used to enter the Nifty on any dip or correction.”
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