BackVaccine hopes drive Sensex to 4-month high. 10,700 level eyed for Nifty
Global markets were positive today following news of encouraging trials of a vaccine being developed for coronavirus
PremiumIndian stock markets today ended at near four-month highs as positive developments in a coronavirus vaccine trial improved global risk sentiment. The NSE Nifty 50 index ended 1.17% higher at 10,551 while the S&P BSE Sensex was up over 400 points to 35,843.7, the best closing levels for the indexes since March 6. The rupee ended at 75.01 against the dollar, its best closing level since March 27.
Global stock markets were upbeat after a COVID-19 vaccine from Pfizer and Germany's BioNTech was found to be well tolerated in early-stage human trials. This helped offset worries about rising coronavirus cases at home, with tally crossing 600,000.
IT stocks gained ground following reports that US Democratic presidential candidate Joe Biden would lift the temporary suspension of H-1B visas, used by Indian IT professionals, if he wins the November elections. IT giants Tata Consultancy Services Ltd and Infosys Ltd jumped more than 3% each, pushing the Nifty IT Index 2.7% higher.
Here is what analysts said on today's market performance
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"Nifty witnessed sustainable follow-through upmove on Thursday, after the firm upside bounce of Wednesday and closed the day higher by 121 points. The short term trend of Nifty continues to be positive. The next upside resistance to be watched around 10650-10700, which could be achieved in the next few sessions. Key lower support is placed at 10450."
Rohit Singre, Senior Technical Analyst at LKP Securities.
"Nifty is in formation of higher high and higher low pattern which suggest overall structure is bullish and dip can be good buying opportunity. Now on higher side, Nifty has stiff resistance at 10600-10700 zone and support for Nifty is coming near 10480-10400 zone traders. Support for nifty bank is coming near 21800-21500 zone and resistance is placed at 22300-22500 zone".
Vinod Nair, Head of Research at Geojit Financial Services.
"The Indian indices traded in sync with global cues and ended the day with gains. The gains were supported by IT and Auto indices. Global indices were positive following news of encouraging trials of a vaccine being developed for the virus. Global markets are awaiting US employment figures, due out later today, to see the progress of the US economy and its resultant impact on global economic growth. Indian benchmark indices have sustained their momentum while upsides seem to be limited. Investors are advised to watch out for any signs of trend reversal and keep booking short term profits."
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
"We kept above 10450 the entire day and any small dips were bought into. We should be headed to 10650-10700 levels. The support for the Nifty is now upgraded to 10350."
(With Agency Inputs)
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