At present level, downside support for Nifty comes at 9,700 while upside resistance comes at 10,000 level, say analysts
HDFC, ICICI Bank and HDFC today closed up between 3.5% and 4.5%
Indian equity benchmarks Sensex and Nifty today shrugged off Indo-China border tensions to finish higher today on hopes that liquidity will keep propping up global markets. Sensex closed up 376 points higher at 33,605. NSE Nifty 50 index ended 1.02% higher at 9,314 after trading in the range of 10,046 to 9,728.50. The rupee ended at 76.21 against the dollar after earlier falling to 76.30.
Earlier in the session, Sensex and Nifty both had rallied more than 2% in early trade before reversing their course after the Indian army said one of its officers and two soldiers were killed in a "violent faceoff" at the border.
Global stocks rose after the US Federal Reserve said it would start purchasing a diversified range of investment grade US corporate bonds.
Among the Sensex stocks, HDFC Bank Ltd closed up 4.3%, ICICI Bank Ltd finished the session 3.58% higher, while HDFC closed up over 4%.
Among losers, Axis Bank and Tech Mahindra lost between 2% and 3%.
Ajit Mishra, VP - Research, Religare Broking
"In a volatile trading session, the Indian indices opened on a firm note in sync with the global markets. As the day progressed, news reports of escalating border tensions between India and China led to a sell-off in the Indian markets. However, it soon managed to recover. Markets are witnessing wild swings and it may continue as we are mirroring the global markets. Besides, the stand-off between India and China will also be on investors' radar and any further escalation could negatively impact the markets. On the index front, a decisive breakout above 10,050 in Nifty can only trigger a fresh up move else consolidation will continue. We reiterate our view preferring hedged bets in the present."
"The index started its day with gap-up opening with more than 200 points on back of global cues. But the early gain couldn’t sustain long and we witnessed a fall in the Index due to the news of India-China border face-off. Later, the Index started to recover from its day low and finally settled at 9914 level with the gain of 100 points. Overall it was a highly volatile trading session with roller-coaster ride. At present level, downside support comes at 9,700 while upside resistance comes at 10,000 level.
Manish Hathiramani, technical analyst at Deen Dayal Investments
"We almost triggered both ends of the range - We were unable to cross 10,050 or break 9,700. Until the month-end expiry, both levels are very crucial for the market as we could expect a one-sided decisive move if either levels are taken out."
Vishal Wagh, Research Head, Bonanza Portfolio
"Going forward, major resistance for Nifty is 10,040 and support is at 9,700. Bank Nifty will face resistance around 20,700 and support will be seen at 19,100 levels."
Vinod Nair, Head of Research at Geojit Financial Services
"The border dispute between India and China resulted in volatility in the stock market. This was in spite of steady global markets following the announcement of the US Fed reserve’s expanded bond-buying program. Investors seem to have set aside the news emerging from the border and are still hoping on the fact that liquidity will keep propping the markets, for the time being."
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