Home >Markets >Stock Markets >Bulls make a smart comeback as Sensex surges 834 points: 10 things to know

Indian stock market benchmark Sensex soared 834 points today, tracking strong gains in index majors HDFC twins and Reliance Industries amid an upbeat trend in global markets. The 30-share BSE index ended 834 points higher at 49,398 while the broader NSE Nifty surged 1.7% to 14,521. With today's gains, Sensex has now recovered most of losses of the previous two sessions. Sensex had lost more than 1,000 points in two sessions.

Here are 10 things to know about today's market move:

1) Bajaj Finserv was the top gainer in the Sensex pack, rallying around 7%, followed by Bajaj Finance, HDFC, L&T, ICICI Bank, Sun Pharma and NTPC. On the other hand, Tech Mahindra, ITC and M&M were the laggards.

2) Bajaj Finance rose 5% and HDFC 3% while Reliance Industries and ICICI Bank gained 2-3%.

3) Global markets were mostly higher today with investors hoping that the changing of the guard in the US will mean more support for the economy and more aggressive measures to fight the pandemic.

4) Joe Biden's nominee for treasury secretary, former Federal Reserve chair Janet Yellen, is urging Congress to do more to fight the recession to avoid an even worse downturn.

5) In testimony prepared for her confirmation hearing Tuesday before the Senate Finance Committee, Yellen said more aid is needed to get coronavirus vaccines distributed — key to ending outbreaks — to reopen schools and to help families struggling with job losses stay fed and housed.

6) Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking, said: “Post the previous sessions correction, it initially seemed that the pullback move would again see some profit booking and the volatility would continue in today’s session as well. However, the index breached its Intraday resistances one after another and posted decent gains at the close. Most of the sectors participated in the upmove today while the broader markets gained back momentum.

7) He added: :Frankly speaking, today’s move was certainly a bit unexpected by us; but certainly the bulls have made a smart comeback supported by the global optimism. Going ahead, 14450 and 14320 would now be seen as immediate supports, whereas 14600-14620 would be the immediate range to watch. Traders are advised to focus on stock specific moves and look for themes which are providing good opportunities during the day."

8) Vinod Nair, Head of Research at Geojit Financial Services, said: "Bulls took control after two days of massive selloff, tracking positive cues from Asian markets and in expectation of a bigger US stimulus to keep the liquidity alive. Buying was seen across sectors with realty and PSU Banks outshining. The current market will get further boost by foreign inflow if additional US stimulus kicks in. However, recent volatility in the market has increased due to concerns over high valuations and bond yields. Investors should be watchful."

9) Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, said: "The Nifty has closed around its resistance area of 14550-14600. If we manage to get past that level, we should be headed to 14800-14900. The index has made a strong base at the 14200 levels which acted as good support.

10) Keeping a close below this level as a stop, he said, traders can initiate long positions for higher targets.

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