Indian stock indices rebound on hopes of progress in US-China trade talks; Nifty ends at 24,853

MUMBAI: Indian stock indices rebounded on the last trading session of this week, with both the Sensex and Nifty rising about 1 per cent, buoyed by optimism over US-China trade negotiations. The BSE Sensex ended at 81,721.08, up 769.08 points, or 0.95 per cent, while the Nifty 50 at the National Stock Exchange (NSE) was at 24,853.15, up 243.45 points, or 0.99 per cent.

Sectorally, strength was observed in Consumer Goods, IT, Consumption, Financial Services, and Banking stocks, while weakness persisted in the pharma and healthcare sectors. The Nifty opened on a flat note at 24,639 and briefly dipped to a low of 24,614 before staging a sharp rebound to touch an intraday high of 24,909.

Observing the trends today, Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity, said, “Market sentiment was buoyed by optimism over US-China trade negotiations, following a mutual agreement between Washington and Beijing to maintain open lines of communication”. “However, gains were capped due to concerns over foreign fund outflows amid rising US Treasury yields and a weakening US fiscal outlook,” he added.

Dr Praveen Dwarakanath, Vice President of Hedged.in, said the Nifty continues its bullishness towards the 25000 level. The index has immediate resistance at the 25200 level and support at the 24500 level.

“The index has momentum on the upside, indicating it can be bought at every dip. The index has taken support from its 20-day moving average and bounced from the day’s opening, indicating strength in the index. The Bollinger band shows an expansion, suggesting a possible rally in the index from the current level,” Dwarakanath added.

In the derivatives segment, 183 stocks advanced while 38 declined. Significant open interest build-up was noted in Solar Industries, Sun Pharma, Grasim, Angel One, and ABFRL stocks. Despite the enthusiasm in the market, experts say that foreign fund outflows still impact the investor’s sentiment in the stock markets. (ANI)