Sensex jumps 300 pts, Nifty above 23,200 on positive global cues; Kotak Mahindra Bank, Wipro shine

"This is largely driven by global cues, including gains in US and Asian markets. However, the focus remains on stock-specific movements due to the ongoing earnings season, with no major triggers ahead of the budget," Ruchit Jain, Vice President of Technical Research at Motilal Oswal said in an interaction with Moneycontrol. "Despite this positivity, concerns linger as foreign institutional investors (FIIs) continue to hold 85 percent of their index futures positions on the short side, and cash segment selling persists," he added.

The market appears oversold, as it is trading below the 200-day exponential moving average (200-DMA), which now acts as resistance in the 23,600–23,700 range. While pullback moves are possible, these are likely to face resistance, and any broader reversal will be led by large-cap stocks rather than mid- and small-caps.

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Kotak Mahindra Bank shares were making headlines, rising 7 percent after it bagged a slew of upgrades from broking houses as analysts turned bullish on the bank following its positive earnings show for the October-December quarter (Q3) of the fiscal year 2024-25 (FY25). It reported a 10 percent rise in its net profit at Rs 4,701.02 crore for Q3FY25, compared to Rs 4,264.78 crore in the year-ago period, the lender said in an exchange filing.

Tech major Wipro shares also gained 8 percent after it delivered better-than-expected earnings for Q3, marked particularly by its continued margin improvement despite a seasonally weak quarter. The company's operating margins, which came at a three-year high in Q3 have garnered positive views from brokerages, with some upgrading their estimates for the IT player.

Dixon Technologies' share price gained 1 percent as the company is going to acquire the land and assets of KHY Electronic India. The company subsidiary IsmartU India has entered into a binding Memorandum of Understanding with KHY Electronic India whereby the subsidiary will acquire, land and building, machinery and other tangible assets from KHY, for an amount of up to Rs 133 crore excluding applicable taxes.

Read more: Kotak Mahindra Bank Q3: Brokerages upgrade stock on strong performance, reversal of RBI ban awaited

The broader market, including mid- and small-cap indices, traded higher. Both indices remain significantly below their September peaks, with the Midcap index down 12 percent and the Smallcap index falling 11 percent. Many individual stocks have faced sharper corrections, dropping 25-40 percent. This decline is attributed to stretched valuations, slowing economic momentum, and underwhelming Q2 earnings.

Nifty Bank and PSU Bank indices led the gains, each rising 1 percent, driven by a sharp uptick in Kotak Mahindra Bank. The IT index also advanced, supported by Wipro's strong Q3 earnings. Oil and Gas and consumer durable stocks opened on a positive note, while Nifty Metal recovered from early losses to gain 0.5 percent. However, Nifty Auto, Pharma, and FMCG indices lagged, trading marginally in the red.

"After a positive opening, Nifty can find support at 23,100 followed by 23,000 and 22,800. On the higher side, 23,300 can be an immediate resistance, followed by 23,400 and 23,500," Hardik Matalia, Derivative Analyst at Choice Broking said. "The charts of Bank Nifty indicate that it may get support at 48,300 followed by 47,900 and 47,500. If the index advances further, 48,800 would be the initial key resistance, followed by 49,200 and 49,500," he added.

Kotak Mahindra Bank, Wipro, Bajaj Finance, NTPC, and SBI were the major gainers on the index. Shriram Finance, SBI Life Insurance, Trent, Axis Bank, and HDFC Life Insurance were the major losers on the index.

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