Benchmark stock market indices closed after seeing a late rally which helped Sensex and Nifty gain over half a percent, fuelled by gains in auto and metal stocks.
The S&P BSE Sensex added 573.41 points to close at 85,762.01, while the NSE Nifty50 jumped 182 points to end at 26,328.55.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, said that broad-based buying, led by metals, banks and auto stocks, kept market breadth positive, while steady domestic institutional inflows helped offset persistent foreign selling.
“Optimism around an improving earnings outlook, healthy auto sales, positive bank business updates and expectations of reforms and a potential US trade deal further buoyed sentiment. A marginally stronger rupee and supportive global markets added to the momentum,” he added.
Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty has broken above its previous swing high, reinforcing a positive trend bias.
“The bullish crossover of the 20 EMA and 50 EMA further strengthens the upward structure. Additionally, the daily RSI has broken out of its prior consolidation phase, signalling a pickup in momentum. The trend is expected to remain firm in the near to short term, with a buy-on-dips approach favoring the bulls as long as the index sustains above 26,000. On the upside, a decisive move above 26,350 could open the door for an advance towards 26,600 in the short term,” he added.
