Sensex surged 680 points while Nifty finished above 12,600 as rally extended to seventh day
Banking and financial stocks led the rally today
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.
"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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