Stock market ends in green, snaps five-day losing streak

MUMBAI: Benchmark domestic equity indices on Monday ended in the green in a volatile session snapping a five-day losing streak. The Nifty closed near 25,800 after an intraday recovery to settle near the day’s high. At close, the Sensex was up 301.93 points or 0.36 per cent at 83,878.17, and the Nifty was up 106.95 points or 0.42 per cent at 25,790.25.

In the sectoral analysis, the metal index rose 2%, PSU Bank by 0.7%, FMCG by 0.6%, On the other hand, capital goods, pharma, media and realty indices shed 0.5-1.5%.

Vinod Nair, Head of Research, Geojit Investments Limited said, “The Indian market rebounded from the day’s lows as investor sentiment improved following favourable remarks on trade deal by the U.S. Ambassador ahead of the next round of negotiations. This positive undertone provided a lift to overall market sentiment. The commodities segment outperformed, supported by strength in metals, which benefited from renewed buying interest during supply constraints.”

“Value buying was also evident in consumer and banking stocks, as investors sought opportunities after recent corrections, supported by expectations of stronger Q3 earnings and improving demand. Additionally, precious metals maintained their upward momentum amid persistent geopolitical tensions”, Nair said.

Shrikant Chouhan, Head Equity Research, Kotak Securities said, “The benchmark indices witnessed a sharp recovery from the lower levels. The Nifty ended 107 points higher, while the Sensex was up by 302 points. Among sectors, the Metal Index outperformed today, rallying over 2 per cent, whereas the Reality and Media indices shed over 1 per cent”.

Rupak De, Senior Technical Analyst at LKP Securities said, “Strong buying near the day’s low led to a smart recovery in the market. On the daily chart, the index has formed a piercing line pattern, suggesting the possibility of a bullish reversal after a few days of selling pressure. On the hourly chart, the RSI has moved out of the oversold zone, indicating early signs of recovery”. (ANI)