In the highly volatile session, the benchmark indices erased all the previous session losses, with Nifty hitting a fresh all-time high of 22,252.50 led by buying across the sectors.
On the back of mixed global cues, the market started flat but extended profit booking from the previous session dragged the Nifty below 21,900, intraday. However, the last couple of hours of buying helped the index to end near the day's high.
At close, the Sensex was up 535.15 points or 0.74 percent at 73,158.24, and the Nifty was up 162.50 points or 0.74 percent at 22,217.50.
The Sensex is now just 225.87 points away from its record high level of 73,427.59 tested on January 16.
Stocks and sectors
Bajaj Auto, HCL Technologies, Eicher Motors, ITC and Coal India were among the top gainers on the Nifty, while the losers were IndusInd Bank, HDFC Bank, BPCL, Kotak Mahindra Bank and Hero MotoCorp
On the sectoral front, Auto, Capital Goods, Metal, Power, Information Technologies and Telecom were up 1 percent each. However, the bank index ended marginally lower.
BSE Midcap gained 1 percent and Smallcap index added 0.5 percent.
Nifty Bank index also witnessed a sharp recovery of 493 points from the day's low 46,426.85, finishing at 46,919.80.
Among individual stocks, a volume spike of more than 200 percent was seen in SAIL, Cummins India and Grasim Industries.
A long build-up was seen in ABB India, Vodafone Idea and Cummins India, while a short build-up was seen in IndusInd Bank, IOC and BPCL.
280 stocks touched their 52-week high on the BSE, including ABB India, Agro Tech Foods, BF Utilities, Cummins India, Dishman Carboge, Ethos, Godfrey Phillips, Grauer and Weil, Indian Hotels, Jagran Prakashan, M&M, MAS Financial Services, NCC, Quick Heal Technologies, Siemens, Tata Investment Corp, Thermax, among others. Click here for the full list
Outlook for February 23
Aditya Gaggar Director of Progressive Shares:
Mid and Smallcaps remained under the grip of the bears which dragged the overall markets lower in the opening trade. As the day progressed, the Index gradually started to recuperate its losses and in the last session, a strong comeback was seen across the board which propelled the Index to end the session higher at 22,217.45 with gains of 162.40 points.
Except for BankNifty, all the sectors ended the day in green with IT and Auto being the outperformers.
On the daily chart, the Index has formed a strong bullish candle after successfully testing its support level of 21,930 and is all set to move toward the target of 23,120 (Ascending Triangle Breakout).
Rupak De, Senior Technical Analyst, LKP Securities
The market remained highly volatile due to the weekly expiry of Nifty options. On the lower end, it found support at the 21EMA before rallying towards higher levels. The momentum indicator has experienced a bullish crossover.
Overall sentiment has turned positive once again, with the potential to reach towards 22,400/22,600 in the short term. On the lower end, support is placed at 22,100.
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