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Indian stock markets surged today led by strong gains in IT stocks with Nifty regaining the 17400 levels. The blue-chip NSE Nifty 50 index ended up 1.37% at 17,401.65, while the benchmark S&P BSE Sensex advanced over 750 points to 58,461. Both indexes recorded their biggest one-day gain in a month after sharply dropping last week and see-sawing on fears over the Omicron variant. The rupee today slipped 8 paise to close at 74.99 against the US dollar.

S Ranganathan, Head of Research at LKP Securities, said, "As the volatility index cooled off today, we witnessed stock-specific action across sectors in the broader markets buoyed by GDP and GST data together with cooling energy prices."

The broader markets too performed in line with benchmark wherein midcap and smallcap both ended with gains of a percent each.

“The Nifty has closed around its resistance area of between 17400-17500. If we can trade above this zone for a couple of days, the markets can restart its upward trajectory. If the market has to resume the current weakness, it would need to take a U-turn from here and head downward. Either way, a good trading opportunity is in the offing," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

The Nifty IT index climbed over 2% to be top gainer among the sectoral indices. HDFC was the top performer among the Sensex constituents, climbing 3.92 per cent, followed by PowerGrid, Sun Pharma, Tata Steel, Tech Mahindra, HCL Tech and Bajaj Auto.

Meanwhile, India today confirmed its first cases of the omicron coronavirus variant in two people who traveled abroad, and a top medical expert urged people to get vaccinated.

“Today's upmove seems to have strengthened the upside bounce which started from the lows of 16782. A decisive upside breakout of the hurdle of 17400-17600 levels could only change the short term negative sentiment of the market. Any turn down from near the resistance band could bring bears into action again. Immediate support is placed around 17300-17250 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. 

 

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