Sensex Today: On Tuesday, key benchmark indices BSE Sensex and Nifty 50 were trading higher, tracking gains in global markets.
At 10:36 am, the BSE Sensex was trading up 939 points or 1.21 percent at 78,278. The Nifty50 was trading up 293 points or 1.25 percent at 23,747.
The BSE Sensex entered a correction on Monday, weighed down by concerns over foreign outflows and weak corporate earnings. The Nifty50, which signaled a correction on November 13, ended its longest losing streak in 20 months.
However, the Relative Strength Index (RSI) for Nifty is below 30, indicating that it is in oversold territory.
After Monday’s market rout, the Nifty and Sensex were down 11 percent and 12 percent from their record highs. In yesterday’s trade, foreign investors in the cash markets poured in around Rs. 1,400 crore had been invested.
All sectoral indices were trading in green territory. Nifty Energy, Realty, IT and Auto were the top performers. Gains in NTPC, Reliance, ONGC and Power Grid boosted market sentiment. Realty companies like DLF and Brigade traded higher. Auto stocks like M&M, Tata Motors and Bajaj Auto led the index by around 2 percent.
Sensex, Nifty recovery will continue?
Akshay Chinchalkar, head of research at Axis Securities, said that the last time that happened was in February 2023, which led to a relief rally and historically, looking at the last decade, such downstreaks have mostly led to a market rally in the next 5 days. .
Chinchalkar said the short-term momentum has also been deeply sold with the recent decline below the regression channel drawn from the March 2023 lows, implying that the bounce is overdue. “Holding the Nifty support range of 23,200-23,300 zone is key while 23,680 level remains an immediate upside barrier,” he said.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said he feels a quick and sharp recovery is not in sight. The momentum that took the Nifty to its record high of 26,216 in September is gone, he added.
Given the selling mode of FIIs and concerns around weak earnings growth in FY25, the recovery is unlikely to last, he said.
“At best the market may consolidate around current levels with a sideways move. A sustained move will be seen only when the incoming data indicates a recovery in earnings,” he said.
A notable trend in recent days is the continued weakness in a large number of mid and small caps.
“Hundreds of such stocks, which were ahead of fundamentals and driven by momentum, are coming back to sense. Investors don’t need to rush to get these stocks which have high potential for losses. In contrast, quality large caps are resilient and investors can stick to them,” Vijayakumar said.